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Audit Finds Improper Contracts For LAUSD Schools

LOS ANGELES (AP) — An audit has found that a Los Angeles school construction panel improperly hired contractors on four occasions, creating potential conflicts of interest.

The district asked Los Angeles City Controller Wendy Greuel to perform the audit earlier this year after a contracted construction manager was charged with receiving kickbacks.

Greuel said Wednesday that her audit identified four cases in which panelists stood to financially benefit from school construction deals. She declined to reveal details but says the incidents all occurred before 2006, when controls over a $20-billion school district construction program were especially lax.

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Greuel Says There Were Numerous Potential Conflicts of Interest With Contracts Awarded, KNX 1070's Ed Mertz reports.

Greuel says the cases have been turned over to the Los Angeles Unified School District, which will decide whether to seek criminal charges.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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