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Schrenko’s first testimony: Aide steered the deal
The Atlanta Journal-Constitution
Former state School Superintendent Linda Schrenko, who pleaded guilty Wednesday to embezzlement and money laundering, testified Thursday morning against her former deputy superintendent and lover, Merle Temple.
Schrenko said Temple devised the scheme to funnel illegal money into her 2002 gubernatorial campaign and guided the process every step of the way.
Schrenko said it was Temple’s idea to have the Department of Education cut 11 checks for just under $50,000 to the Atlanta computer company of Stephan Botes, a South African national and millionaire whom prosecutors say hoped to get a major contract with the school system in return for making illegal contributions to Schrenko’s campaign.
The checks were officially earmarked for Botes’ company to produce software that would benefit deaf and honors students, she said.
Schrenko, who looked directly at the jury and spoke passionately when she talked of the planned educational programs, said she thought the company would produce the software eventually.
“The schools for the deaf and blind are schools that rarely get anything extra, Schrenko told the jury.
Government prosecutor Russell Vineyard asked: “Was that your motivation, Ms. Schrenko?”
She replied, “In part, but I also knew Merle would get a commission on it. I knew whatever commission came to Merle, he would put in my campaign.
In the summer of 2002, Shrenko said Temple resigned as her deputy to go to work for Botes’ company. Temple promised he’d give Shrenko the majority of the commissions he earned for her campaign, she testified.
Schrenko admitted she did not have the authority to issue the checks without following protocol but said Temple convinced her it would take too long to go through the usual channels.
In return, Schrenko said, Temple asked her to sign a $2.5 million contract with Botes’ company. She said she never actually signed the contract, which was stamped with her signature, instead of signed.
Botes and a former employee, Peter Steyn, are co-defendants in the federal corruption trial, now in its second week. During opening statements last week, Botes’ attorney claimed any deals with Schrenko and Temple were done by his underlings.
But Schrenko said she and her female assistant spent the night at Botes’ home in Country Club of the South the night before a March 2002 breakfast fundraiser the computer executive held for her. Many of the 30 to 40 people who attended were not U. S. citizens and would not have been eligible to vote, she said.
“I kind of wondered wondered why, if I couldn’t get their votes, they would be interested in my campaign for governor,” Schrenko testified.
Schrenko said she and Temple also spent a night alone at Botes’ home before another fundraiser at Country Club of the South in the summer of 2002.
Schrenko seemed relaxed on the witness stand, speaking softly and often smiling at the jury.
After she pleaded guilty on Wednesday, Temple, who was scheduled to testify against her in return for a lighter sentence, was charged with obstruction of justice.
Prosecutors produced a tape-recorded telephone conversation between Schrenko and Temple on May 2 in which he offered to leave damaging information about her out of his testimony, as long as her attorney protected him.
Recording telephone conversations is legal in Georgia as long as one of the parties agrees to it, indicating Schrenko’s participation in the taping factored in the new charges against Temple.
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