Today's Outrage: FCC's Communication Breakdown

No one was quite sure why the Federal Communications Commission took nearly a year and a half to review the merger between Sirius (SIRI Quote) and XM Satellite Radio. Many people wondered what exactly it was the FCC was doing during that interminable wait.

Now we know, thanks to a nearly year-long investigation by the House Committee on Energy and Commerce, which released a report on its findings Tuesday. The report's damning title, Deception and Distrust: The Federal Communications Commission Under Chairman Kevin J. Martin, gives away the plot of the entire 110-page summary.

The report discusses in detail instances in which Martin manipulated, withheld or suppressed data, reports and information. The investigation also found that important FCC matters were not handled in an open and transparent matter, which raised suspicions that interested parties and various issues were not treated fairly.

"He left us a blueprint of what not to do as chairman of such a critical agency," said Rep. Bart Stupak (D-Mich.), chairman of the Subcommittee on Oversight and Investigations, on a conference call for reporters.

Most damaging to Martin was the investigation's finding that his "heavy-handed, opaque, and non-collegial management style" created an environment of distrust, suspicion and turmoil for the other FCC commissioners.

"Even trivial, routine matters must be cleared by the Chairman's office," the report stated. "Chairman Martin's office micromanages virtually every aspect of agency management, resulting in decision paralysis at the Commission."

The Committee's findings also showed that Martin's poor management style has persisted through his entire tenure and has caused a continuous backlog of matters still waiting for his review. That would explain the 17-month wait for the FCC to finally support the merger of Sirius and XM. Many shareholders continue to blame the FCC's delay for the rapid decline in share price, as synergies the joined company expected came far later than anticipated.