Qwest ducks debarment by GSA

After a two-and-a-half-year probe, the General Services Administration declined to debar Qwest Communications International Inc. of Denver from competing for federal government work.

The news comes as the company is in the midst of renewing its bidding war with Verizon Communications Inc. of New York to acquire MCI Inc.

GSA began its review of Qwest's government contracts in July 2002, based on allegations that the Denver carrier inflated revenue in connection with transactions involving the Arizona School Facilities Board and telecom carrier Genuity Inc. In 2004, Qwest paid a $250 million fine to the Securities and Exchange Commission to settle financial fraud charges.