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Bribery Bombshell In APS

More than two years after the AJC first reported widespread abuses in Atlanta Public Schools’ multi-million-dollar technology program, reporters Paul Donsky and Ken Foskett learned this week that the problems weren’t just a result of gross mismanagement. Some of the activities were actually illegal.

Turns out the school system’s former technology director was on the take — raking in more than $300,000 in bribes from companies looking to do business with APS, which was flush with cash from a federal program that provided high-speed Internet service and computers to schools with large numbers of poverty-stricken students.

According to Donsky and Foskett’s story, Arthur Scott and his wife, Evelyn Myers Scott, who also worked in Atlanta’s technology department, used a shell company to funnel kickbacks — which conveniently paid for the couple’s wedding, new house and other personal expenses.

Both pleaded guilty Wednesday to federal corruption charges.

Scott left APS years ago, and he abruptly resigned from the technology director’s job in Decatur city schools in March. His wife also no longer works in APS. But, certainly, this can’t help the perennially embattled school system’s reputation, can it?

UPDATE: In other grand jury news, Clayton County Public Schools officials were recently chided for being poor stewards of taxpayer money. Last fall, system officials spent $18 million in a convoluted real estate deal in which the land purchased was valued at just $8.3 million.

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Comments

By WFC

May 4, 2007 8:20 AM | Link to this

The APS have been a sinkhole of incompetence and corruption for years. Evidence?

  • Compare expenditures per student with other systems.
  • Compare the number (%) of administrators per student with other systems.
  • Go to Georgia State and take some administration classes (I have.) The APS would-be-administrators are befuddled and language-challenged at best (with a couple of exceptions.)
  • By Lee

    May 4, 2007 8:37 AM | Link to this

    Sadly, this type of fraud is more commonplace than most realize. Part of the reason is that many in the Central Office got there because they were someone’s lackey and are given a free rein to do whatever they want. Another reason is that a lot of central office personnel do not have any business experience and do not understand the concept of an effective internal control structure with its requisite checks and balances.

    Oh yeah, the guy’s wife worked for him in the same department. Many fraud scenarios require collusion between two or more employees. What better person to have as an accomplice than your spouse?

    By KA

    May 4, 2007 8:47 AM | Link to this

    Is there any state oversight over school systems’ finances? Maybe a statewide audit is in order.

    By jim d

    May 4, 2007 8:48 AM | Link to this

    Makes you wonder doesn’t it?

    It’s nice to know the AJC is capable of doing some investigative reporting although we can rest assured it won’t ever happen in Gwinnett county. Since nothing really ever came of the former GCPS, CFO Jeff Weiler accusations regarding spending anywhere from $20 to $50 million every year with one single technology company without any form of public bidding and spending over $49 million (and counting) with that same company for implementing a new system (PeopleSoft), when that same company orignally estimate the total cost to be just over $27 million.

    Here’s a copy of the letter that was sent to the AJC back in 2006

    http://gcps.blogspot.com/2006/11/for-love-of-public-education.html

    By jim d

    May 4, 2007 9:07 AM | Link to this

    Bridget,

    How about attempting to explain this one. No one else seems to want to touch it.

    http://photos1.blogger.com/blogger/1991/4112/1600/Memo%20Tech%20Costs%20and%20SPLOST%20-%2001.jpg

    By jim d

    May 4, 2007 9:21 AM | Link to this

    Then there’s the fraud issue that was never really addressed.

    http://gcps.blogspot.com/2006/11/defrauding-state-retirement-system.html

    By JustMe

    May 4, 2007 9:32 AM | Link to this

    I agree that there needs to be some type of State DOE police to audit school systems. Currently, they have no one to answer to for their wasteful spending, fraud, kick-backs, bribes, hiring of relatives/friends, etc. It is only when a journalist investigates is anyone exposed…… and that is sad.

    By Lee

    May 4, 2007 9:49 AM | Link to this

    That’s pretty damning stuff Jim D, has the GC School Board acted on any of this?

    [I probably know the answer to that one before I asked…]

    KA asked the question about a statewide audit. It’s my understaniding that if there are, they are at a very high level and only concentrate in one particular area - such as, making sure that the funds for a particular program are actually spent in that area.

    Here’s the deal, we used to have a very active school board in our semi-rural system. Going to the board meetings became great sport. Eventually, the School Board Association [i think] put them on probation and threatened to pull the system’s accredidation. There were about 3 board members who chose not to run for re-election rather than put up with all the crap the SBA was putting on them. Now, we have a “Board of Distinction,” which pretty much means that we have a bunch of wimps who rubberstamp everything the Supt puts before them.

    By jim d

    May 4, 2007 10:00 AM | Link to this

    Lee,

    Sure they have—they sat on their hands and waited for it to just go away like everything else here does.

    I do suspect (no first hand knowledge), due to Mr. Wiellers sudden silence on these issues, that GCPS system used it’s normal tactics of threat and intimidation to silence him.

    I find it a sad state of affairs when a school system has it’s own police force which only answers to an ex shop teacher from Dekalb and it answers to no higher authority regarding spending of tax dollars.

    By Ernest

    May 4, 2007 10:04 AM | Link to this

    JimD, as I said before, if those things happened in DeKalb, it would be the lead story on WSB. Heck, we’ve had a few stories referring to our school system the past couple of weeks that I personally question if they rise to the level of attention that they received. Gee whiz, I wonder why us and not Gwinnett….

    By jim d

    May 4, 2007 10:10 AM | Link to this

    Ernest,

    I suspect your Chamber of Commerce may not weild the power ours does. Pulling the plug on advertising dollars generally gets ones attention. If you know what I mean.

    By Bridget Gutierrez

    May 4, 2007 10:17 AM | Link to this

    jim d: AJC’s Gwinnett education reporter, Laura Diamond, wrote a story late last year that reported that the Gwinnett County district attorney was looking into the allegations. I know that Laura was looking into them as well.

    By WhatWillBridgetDo?

    May 4, 2007 10:18 AM | Link to this

    Sorry for the repeat; the first one got posted to Wednesday’s blog instead of today’s.

    JustMe has got it exactly right as far as discipline. And speaking of discipline and APS corruption, remember right before Patti left this blog she promised a follow up to the falsified discipline data submitted by APS officials?

    In particular, South Atlanta high claimed to have zero violent crime reports, when the Atlanta Police Dept. reported they had to come to the school over 50 times that same year.

    What happened to the follow up Bridget? What happened to finding out who else, besides the principal, had to sign off on this?

    It’s funny that you’ll go on and on about one principal’s resume’ but say nothing about falsified federal documents. Are we afraid to find out just how high the deception went? Or are we just being pressured by higher ups not to report on this? As big an issue as discipline is, is this not worthy of follow up?

    By jim d

    May 4, 2007 10:28 AM | Link to this

    Bridget,

    Hmmm, whatever became of the looking? Was everyone blinded by Alvins shining personality?

    By WhatWillBridgetDo?

    May 4, 2007 10:47 AM | Link to this

    Sorry again for the repeat. For some reason, my posts are being adding to Wednesday’s blog, even though I’m clicking on today’s Post Your Comment.

    jim d, Perhaps that explains the lack of AJC follow through when forty APS schools submitted falsified data stating that they had zero discipline problems. Zero? In a large urban school system?

    I guess it also explains why there was no follow up when it was found out that five APS schools had a 50 point plus gain in the CRCT in a single year. Even though the only school member on the board at that time said that you can’t have such an increase without cheating, the AJC did nothing to follow up on it.

    Since Bridget is obviously reading this morning, what about the follow up that Patti expressly promised on the falsified South Atlanta discipline data?

    By JustMe

    May 4, 2007 11:01 AM | Link to this

    Bridget,

    Laura D. from the ajc was looking into that issue last year? A whole year and nothing new to report???? Doesn’t that strike you as odd??????

    By Bridget Gutierrez

    May 4, 2007 11:34 AM | Link to this

    jim d and JustMe: I said late last year — as in December. As I said previously, I know Laura was looking into it. But the last time I spoke with her she hadn’t found anything to report.

    WWBD: I obviously cannot speak to what Patti may or may not have promised. As you know, she used to cover APS, but she has been on maternity leave since November.

    By jim d

    May 4, 2007 11:36 AM | Link to this

    “she hadn’t found anything to report”

    Now why am I not surprised?

    By JustMe

    May 4, 2007 11:42 AM | Link to this

    Bridget,

    I do not mean to sound bad at all. It just seems that there is a LOT of stories going on here that could/should be on the front page of the ajc. The many property tax payers should know what is going on with their money.

    By AScott

    May 4, 2007 11:53 AM | Link to this

    I say again, God knows my heart. He knows I am a lying, cheating, stealing scumbag that’s gonna get off with very minimal time by ratting out all those greedy companies that paid me those juicy bribes. thank you god. Now if you can just help my wife with that little tax lien problem…..

    By jim d

    May 4, 2007 12:27 PM | Link to this

    Bridget,

    There is a national movement to get school systems to become more transparent by posting their check ledgers on line.

    http://www.peytonwolcott.com/index.html

    This appears to me to be an idea whose time has come in places like Gwinnett County that have scoffed at the suggestion. You want a great story? Go ask Alvin to do this. Better yet, do a treatise on this concept and watch for the fall-out.

    By Ernest

    May 4, 2007 12:42 PM | Link to this

    Thanks for posting that link, JimD. I was initially skeptical when hearing about that, concerned it my cause ‘busy bodies’ to nitpick and cause officials to spend more time explaining the register that seeing about education. Comments from school systems that have implemented this seem to suggest that greater transparency brought fewer data requests. Maybe this should be my next topic during citizens comment… :)

    By Lee

    May 4, 2007 12:49 PM | Link to this

    Jim D, posing checkbook ledgers online - I like it! While we’re at it, there is really no reason why they can’t publish the management reports as well.

    As a CPA who has performed audit/forensic work in the past, I recall going to a Fraud seminar years ago in which the instructor said: “Executive expense reports are windows into the soul of an organization.” That adage has stuck with me for many years and I have been on a few engagements where it has proven true. So, let’s post them as well (at least for the top 10% salaried employees.)

    By WhatWillBridgetDo

    May 4, 2007 1:10 PM | Link to this

    Bridget,

    You may not be able to speak to what Patti did, but could you explain why you or another AJC reporter haven’t followed through on the falsified South Atlanta discipline reports?

    The AJC and Get Schooled if I remember gave extensive coverage to a single falsified resume at Morningside.

    Can you comment on why you thought it was important to give extensive coverage and follow through to a falsified resume and not falsified discipline data? Surely you were aware of both, right?

    By jim d

    May 4, 2007 1:29 PM | Link to this

    Lee & ernest,

    Thanks for the comments, I came across this some time ago. It occurs to me that a school system that would balk at doing this, must be hiding something. Yet I can assure you that Gwinnett will balk, say there is no demand for the data and won’t do it.

    By Bridget Gutierrez

    May 4, 2007 1:40 PM | Link to this

    WWBD: Each of the education reporters has a specific beat, as we call it, and each is responsible for coverage in that area. No one has been assigned to cover the APS beat full-time since Patti went on leave.

    We also no longer have education reporters assigned to Fulton, Fayette, Coweta, Henry, Clayton or Cherokee counties. Some of those vacancies are temporary and others will be permanent.

    By JustMe

    May 4, 2007 2:46 PM | Link to this

    Bridget,

    Possibly, this type of reporting may not fall under education reporters, but rather investigative reporters. By allowing an investigative reporter to do this, they could check out all school systems in the metro area.

    Just a thought….

    By Sam

    May 4, 2007 2:51 PM | Link to this

    Bridget, maybe you could suggest that the AJC assign a reporter to a general Corruption in Education beat. Actually, it would probably take more than one reporter to fully cover such a beat. I know from long experience in Dekalb that the county office is rotten to the core and has been for a long time. Does anyone remember a few years ago when the person in charge of the Service Ctr. was stealing huge amounts of county property and hauling it off on a regular basis [using county trucks}??/ And the worse was….when he got out of jail THEY HIRED HIM BACK !!!!

    By Sam

    May 4, 2007 2:56 PM | Link to this

    ooPS…for the grammar/usage police…that would be worst….

    By WhatWillBridgetDo

    May 4, 2007 3:12 PM | Link to this

    Bridget,

    Thank you for responding.

    Though it’s no fault of your own, it’s hard to believe that the AJC doesn’t have a education beat writer in the city it is based in, or doesn’t have a substitute for the one on maternity leave.

    As much as I’d like to hear teachers off the record talk about the pressures from administration on discipline issues, I can add to that I’d like to hear AJC reporters off the record talk off the record about pressures they face about what stories to throughly follow through on, and what stories to just merely report on.

    Maybe teachers ought to form a blog for Bridget and other reporters to post anonymously on.

    By Sam

    May 4, 2007 3:42 PM | Link to this

    hatWillBridgetDo I often wonder about the pressures , too. So BRIDGET….Do AJC reporters [esp. education] get “cut off” when investigating a hot potato issue? ARe you ever told by your bosses to butt out of an issue? I personally know of a few tips that have been given first to AJC reporters but were never investigated. THen, when the same tip was later given to one of the TV station’s investigative reporters, they geot right on it and , in short order, had a story on the evening news.

    By Tony

    May 4, 2007 4:47 PM | Link to this

    KA and JustMe - school systems are audit annually. Also, financial reports are submitted to the state at the end of each fiscal year. Each school system has a team of auditors that visit on-site to review financial transactions in detail. Even with safeguards, crafty individuals can steal!

    By KA

    May 4, 2007 5:44 PM | Link to this

    Tony, do they do an equipment audit to match with the financial audit? I know that people can cook the books, but if X amt has been allocated and X number should have been purchased, then the two audits should match up, and if not…. I understand that this guy’s scheme was more elaborate setting up a shell company, what a slime.

    By Bridget Gutierrez

    May 4, 2007 6:32 PM | Link to this

    Sam and WWBD: I have never been told to not pursue a story because it was considered too hot of an issue. We expose wrongdoing whenever we can. I don’t know a reporter here who would shy away from doing that.

    By JustMe

    May 7, 2007 8:13 AM | Link to this

    Tony -

    Maybe the word “audit” is not what we mean….

    The “audit” you refer of might simply check, for example, if they spent $10,000 for a toilet and the $10,000 actually went to pay for the toilet. The “audit” that we refer to is wasteful spending - in no way should any toilet cost $10,000!!!!

    Call it whatever you like, but the State of GA DOE needs a team of people checking up on the school systems and the way that they are spending the money.

    By SET

    May 7, 2007 9:40 AM | Link to this

    So what else is new. This is called “Commercial Bribery” people! This is one reason why you screen your prospective employees for fidelity issues. There are personality tests used for this.

    And once you have a workforce in place you have both checks and balances & worker surveillance going on. You are looking for 1> financial distress 2> unexplained wealth among those who’s duties include things that are subject to this kind of behavior and 3> dishonesty in general - because you don’t tolerate dishonesty or people who do.

    Periodically, Non-Profits, Businesses and anybody operating large systems have to be reminded of this because unless you have MBAs or a certain ethnic in charge, human nature is to forget history and the past.

    Thieves are thieves. The reason this occurred is because of bad management. And there is a lot of that going around - it’s not necesarily a school thing.

    When the Bribery is discovered you sue the vendor and their staff and your ex-employee to recover the bribes. The judgment should be exempt from bankruptcy.

    By Tony

    May 7, 2007 6:04 PM | Link to this

    The auditing process for school systems is quite thorough and I believe that the audits are conducted through an office that is independent of the state DOE (https://www.audits.state.ga.us/internet/). It is very unfortunate that some bad apples ruin the reputations of the rest of us. I can promise that we do not have any $10,000 toilets! To imply that educators look for opportunities to squander precious resources is ludicrous.

    By MSCL

    May 8, 2007 5:26 PM | Link to this

    GCPS regularly failed to audit their technology department. The state failed to find money spent on projects for which the money was not specifically designated. It is unethical for GCPS to reassign their staff to no work, keep the employee’s ‘sitting there’ and pay consultants to do their job. These are taxdollars spent in a public school system, not private.

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