Report ripping SCC's potential for waste, fraud, abuse is behind freeze
The Jersey Journal
April 28, 2005
KEN THORBOURNE
Five years ago, the Schools Construction Corp. was created
to manage the state's unprecedented $8.6 billion investment
in new school and renovation projects - $6 billion earmarked
for the state's 31 poorest school districts.
But the agency has been rocked by charges that it's spent
far more to construct new schools than necessary. Since 2002,
the agency spent 45 percent more than 19 schools built by
local school boards during the same period, according to a
recent analysis by the Star-Ledger.
Asked in February by Acting Gov. Richard Codey to study the
agency's spending habits, Inspector General Mary Jane Cooper
issued a blistering report last week that criticized the agency
for having a "wide range of internal weaknesses"
that "make the agency vulnerable to mismanagement, fiscal
malfeasance, conflicts of interest and waste, fraud and abuse
of taxpayer dollars."
Cooper suggested the agency implement 10 changes, including
hiring a qualified chief financial officer from outside the
SCC and discontinuing a policy that allows certain SCC contracts
to be approved by just one employee.
Gerald Murphy, SCC's chief operating officer, said his agency
is working with the governor's authorities unit to implement
Cooper's recommendations.
Murphy said he hoped to have all the land acquisition recommendations
in place by May 20.
