Donna school district now under federal investigation

DONNA — The Donna school district is under investigation by the U.S. Department of Justice’s antitrust division and the Federal Communications Commission, the superintendent confirmed Thursday.

Investigators were on campus for three days earlier this week examining the district’s use of federal funds administered under the E-Rate program, a technology in schools initiative.

“They met with me Wednesday morning,” said Robert Loredo, who was appointed interim superintendent last week.

“They didn’t give us any indication of what they found… they said they will advise whether they’re coming back.”

The FCC and the justice department have declined to discuss the investigation.

This summer, the Texas Education Agency released a report alleging that Donna broke state purchasing laws when it awarded Integrity Communications, a small telecommunications firm out of Corpus Christi, technology work worth $6.6 million without opening it to outside bidders.

The Universal Service Administration Company, which administers E-Rate, did approve those contracts. But the rules of the program state that districts must follow all applicable state laws.

“With all this publicity and the media coverage somebody was bound to look into it,” said Donna School Board member Gilbert Guerrero.

Integrity Communications has won practically every telecommunications project in Donna school district since 2005, jobs that could earn the company $23.3 million in total were USAC to give its OK.

Integrity’s relationship with Donna began in 2004, the same year suspended Superintendent Joe D. Gonzalez joined the district.

Gonzalez came to Donna from the San Benito school district, where Integrity started work on a $2.1 million project installing a new digital phone system in 2003. The San Benito school board pressured Gonzalez into resigning in 2004, for reasons they have not disclosed.

Gonzalez has declined numerous requests for an interview.

This is not the first time the administration of E-Rate money in South Texas has caught the attention of federal investigators.

In February, the owner of a company doing work in the Weslaco school district was convicted on seven counts of wire fraud, as part of a scheme to defraud the E-Rate program.

The justice department is in the midst of an ongoing investigation of fraud and anti-competitive practices within E-Rate, which as of February had yielded charges against 12 companies and 14 individuals.

Loredo — who only replaced former interim superintendent Cecilio Saucedo on Wednesday, after working as an assistant superintendent in the PSJA school district — said he had suspended three employees from the technology department for failing to cooperate with federal investigators.

“I think the investigation will determine whether they come back,” he said.