Cronyism found in TEA contract offers

[Omaha Steve]

http://www.chron.com/disp/story.mpl/metropolitan/5309531.html

Auditor reports some done without competitive bids, but insufficient evidence for case

By JANET ELLIOTT
Copyright 2007 Houston Chronicle Austin Bureau

AUSTIN — The state auditor found cronyism in the awarding of lucrative consulting contracts by the Texas Education Agency but said there was insufficient evidence to present to a prosecutor.

The auditor's office began its investigation in June after an internal TEA review pointed to several contracts that were awarded to friends of top agency officials and a newly retired agency employee.

Auditor John Keel said in his report that those contracts were done without competitive bids and "resulted in the appearance of less than arm's-length-transactions." Keel recommended that the Legislature consider requiring competitive bidding for all consulting and professional services contracts that exceed $25,000.

Additionally, the education agency and 20 regional Education Service Centers that award education contracts should be required to fully disclose professional or personal relationships that may create a conflict of interest.

"The results of our investigation indicate there is a need to strengthen controls over contracting and subcontracting at both TEA and ESCs," Keel said.

Changes promised

Education Commissioner Robert Scott said in a statement that changes will be made.

FULL story at link.