A contract awarded under the Felix consent decree was manipulated by the state Department of Education to avoid the scrutiny of the Legislature and Board of Education, a DOE employee testified yesterday. DOE accused of
abusing Felix powersBy Lisa Asato
lasato@starbulletin.comAlbert Yoshii told a joint Senate-House investigative committee that the DOE tried to "disguise the contract" by naming Hilo-based Na Laukoa as a subcontractor in a larger $2.3 million contract.
The action came after Na Laukoa's qualifications were questioned by DOE officials, he said.
The committee is investigating costs associated with the Felix consent decree, a federal mandate requiring the state to improve services to special-needs students.
Yoshii, who in the past reviewed Felix contracts, said Schools Superintendent Paul LeMahieu improperly used his court-appointed "super powers" to grant the Na Laukoa subcontract under the larger contract with PREL, or Pacific Resources for Education and Learning.
An earlier hearing revealed that Na Laukoa's coordinator, Kaniu Kinimaka-Stocksdale, has a personal relationship with LeMahieu.
Yoshii testified that the DOE funded the PREL contract through federal funds to avoid legislative oversight. He said the $2.3 million from federal impact aid "could have been used for more needed things" like school supplies and books.
Yoshii also said that the powers, which loosen state procurement laws to speed up Felix compliance, resulted in a $100 million contract with a Pennsylvania headhunting firm, Columbus Educational Corp. He predicted the contract will result in a financial "black hole" for the DOE.
Yoshii has a lawsuit pending against the DOE, LeMahieu and Assistant Superintendent Paula Yoshioka that contends he was removed as personnel director in 2000 after questioning the way Felix matters were handled.
DOE Deputy Superintendent Patricia Hamamoto defended the DOE's use of the "super powers" and of federal money.
"I don't believe any of this was done willfully or with the intent to circumvent the Board or Legislature," she said.
After the hearing, Sen. Colleen Hanabusa, committee co-chairwoman, said the DOE knew in January that the $100 million Columbus contract had been reduced to $40 million, but the department still asked the Legislature for the whole amount anyway.
"They accuse us, the Legislature, of not being committed to special education, not being committed to Felix and not being committed to the special-needs children because we ask these questions and we won't give them a blank check," said Hanabusa (D, Waianae-Maili-Makaha). "If anything, what these hearings are showing is that they don't deserve to simply be believed at face value."
Also disturbing was testimony revealing that court monitor Ivor Groves "dictated that Columbus receive the contract when they weren't qualified and didn't have the staff to provide the services," said Rep. Scott Saiki, committee co-chairman.
"I think mainland providers, as well as local providers, are using the consent decree really just to advance their own interest," said Saiki (D, McCully-Moiliili-Pawaa). "And what happens is that students may not be well served in that kind of situation."
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