All…
One word - WOW.
Remember this is staff report prepared for the use of Committee on Energy and Commerce from US House of represenatives (110th Congress). This is serious committee. One thing this may do is call the attention to the rates for the VRS providers and the Congressmen will review that carefully.
I will let you be the judge of whether this is a good news or not.
Deception and Distrust Under FCC Chair
I will not focus on other items; instead, I will focus on the TRS (VRS) issues only.
One of report’s highlight point that "The Commission’s oversight of the TRS Fund has been lax at best. The Chairman’s office appears to have ignored evidence that the ratepayers have been overcharged, while the companies providing TRS have been overcompensated, potentially by as much as $100 million per year".
Quote from a FCC staff, the Chief of the Disability Rights Office, Thomas Chandler, had outlined major problems with the FCC admin of the TRS program and the TRS Fund referring to a single VRS company - Sorenson VRS - provides 82 percent of all VRS minutes
"..we know that the dominant provider was overcompensated approx $80 million in calendar 2006 and $57 million in calendar 2005.."
Other quotes from Chandler: "This compensation in excess of costs increase the Fund size. We also know that, with the same compensation rate, some of the smaller providers lost money."
Additional quotes by Chandler: "We have lost our moorings, with terrible and frustrating consequences (not the least which is the size of the Fund and the enormous overcompensation of some providers)."
According to the report, the "last gasp" by Chandler: "Does the Chairman recognize that these rates perpetuate the enormous ($100 million a year) windfall for Sorenson, at the expense of the ratepayers. [sic] Does he realize that Sorenson’s own filin shows that its actual cost of proving [sic] VRS in calendar 2006 was in the low $4.00 range, so that the present $6.64 rate was more than 50% higher than Sorenson’s actual costs?…."
"…At bottom, that really isn’t the right thing to do." One other quote from Chandler: "I hate to say it, but the whole TRS (VRS) compensation regime has become a classic fleecing of America."
Then report seems indicate that Chandler’s "candid analysis evidently went unheeded".
Of course, there are other allegations not related to TRS, but I thought y’all would like to see that. I strongly suggest you click to the link.
Your thoughts, Dear Readers?
eyes open & thumbs up,
Ed B
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