(Host) Potentially explosive allegations have been made against FairPoint Communications.
An anonymous whistleblower has told regulators that the company and a contractor fabricated tests last winter to make it look like FairPoint was ready to take over Verizon’s land-line telephone business.
VPR’s Ross Sneyd reports.
(Sneyd) FairPoint’s problems in taking over from Verizon have been well documented over recent months.
Billing errors keep showing up. Customers have had to wait weeks for new phone or Internet service to be established – or canceled.
Now, an anonymous person has told regulators in Vermont, Maine and New Hampshire that FairPoint knew that computer programs weren’t working even as service was being switched over from Verizon.
(Wark) "If these allegations turn out to be true, it’s very disturbing."
(Sneyd) Steve Wark works at the Vermont Public Service Department, which represents ratepayers.
He says it’s important to emphasize that the allegations were made anonymously. But he says there was enough detail in the memo to get regulators’ attention.
(Wark) "We’re going to be working with not only the attorney general’s office in New Hampshire, but we’ll be working with Maine and also we’ll be connecting with our AG here as well to really get to the bottom of the situation."
(Sneyd) When regulators approved the sale of Verizon’s assets to FairPoint, they said FairPoint had to prove that its computer software could handle all of Verizon’s customers.
Regulators hired a consultant to judge whether FairPoint and its systems were ready. The switchover couldn’t go forward until the consultant gave the go-ahead.
Now, the whistleblower says, FairPoint’s demonstration for the consultant was rigged.
The whistleblower charges in a memo that a special program was created – quote – "to deceive the audience into believing that they were watching a real demonstration."
FairPoint’s Beth Fastiggi says the company wants to get to the bottom of the claim.
(Fastiggi) "We take these allegations seriously and will do a thorough investigation."
(Sneyd) She emphasized that the allegations were anonymous and that FairPoint has a process for reporting and investigating any suspicions they have.
(Fastiggi) "Employees and third parties can report suspected ethics violations using a toll-free number or email and all reports are fully investigated."
(Sneyd) Utilities regulators received the memo almost two weeks ago and FairPoint was notified on Friday. The company has until next Monday to file its response.
For VPR News, I’m Ross Sneyd.