Letter from Rep. Billy Tauzin (R-LA) and Rep. James Greenwood (R-PA) to Sam Palmisano, CEO of IBM.
Re: Waste, fraud and abuse in the FCC's e-rate program.
Date: July 14, 2003.
Source: House Commerce Committee.
  Tauzin   Greenwood

July 14, 2003

Mr. Samuel J. Palmisano
Chief Executive Officer
IBM Corporation
1133 Westchester Avenue
White Plains, New York 10604

Dear Mr. Palmisano:

As you may know, the Committee on Energy and Commerce, which has jurisdiction over telecommunications issues and the Federal Communications Commission (FCC), currently is investigating the potential for waste, fraud, and abuse in the E-rate program - the mechanism of the Universal Services Fund (USF) that subsidizes the deployment of telecommunications services to schools and public libraries.

In the course of our work, we have been examining documents produced by both the FCC and the Universal Service Administrative Company (USAC), which administers the E-rate program for the FCC. We also have received preliminary information from certain vendors and applicants participating in the program, and have conducted interviews with relevant individuals. Based on our review to date, we have identified your company as having significant involvement in the E-rate program, and thus are writing to you today to seek additional information to assist our review.

Accordingly, we request that, pursuant to Rules X and XI of the U.S. House of Representatives, you provide the following information requested below on or before Monday, July 28, 2003:

Please note that, for the purpose of responding to these requests, the applicable time period is January 1, 1998, to the present, unless noted otherwise. The terms "records," "relating," and "regarding" should be interpreted in accordance with the attachment to this letter.

Thank you for your prompt attention to this request. If you have any questions, please contact Peter Spencer of the Majority professional staff at (202) 225-2927.


W.J. "Billy" Tauzin

James C. Greenwood, Chairman
Subcommittee on Oversight & Investigations

cc:    The Honorable John D. Dingell, Ranking Member
        The Honorable Peter Deutsch, Ranking Member
        Subcommittee on Oversight & Investigations