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COPYRIGHT 2005 The Dallas Morning News
Aug. 23--Federal authorities have frozen payments to a lead computer vendor for Dallas schools pending an inquiry into dealings between the company and district officials, including jobs, campaign donations and luxury boat rides.
In a letter received by the school district last week, the agency that runs the federal E-rate technology-in-schools program also warned it could seek to recover some of the $55 million already paid to vendors for work at the Dallas Independent School District since 1998.
The letter asks for a written explanation of practices revealed by The Dallas Morning News and warns that the district's applications -- $62 million of which are currently pending -- and invoices will get extra scrutiny because of the reports. And the letter says the news reports, if substantiated, raise "serious concerns" about the school district's future participation in the E-rate program.
DISD issued a statement saying the district is drafting its response.
"We believe in an open system and seek to maintain the integrity of the district through this re-examination of the facts," the statement quoted DISD Superintendent Michael Hinojosa, the recipient of the letter. "There are youngsters in Dallas who will benefit for decades from the technology that has been installed in district schools because of this program."
Houston-based Micro System Enterprises, the computer vendor in question, released a statement calling the funding freeze "an administrative action brought on by an unfair attack" by The News.
"We have received a similar letter from [the federal agency] and have responded appropriately, and fully expect funding to...
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