City Controller John Liu has rejected a $2.7 million contract for a company overseen by former Schools Chancellor Joel Klein, the Daily News has learned.
The contract with Wireless Generation - now owned by News Corp., where Klein works - was approved by the city Department of Education in October, when Klein was still chancellor.
But it was rejected earlier this month by the controller's office because Klein had not provided a letter recusing himself from involvement in the contract, which is necessary to approve the deal, officials in the controller's office said.
"Clearly, there remains some outstanding issues with the DOE's submission," said controller's office spokesman Michael Loughran. "It clearly does not meet the requirements, and it still does not meet the requirements."
But Education Department officials said yesterday they consider the deal finalized because the controller's office had not rejected the contract on proper legal grounds.
They also provided a letter to the controller's office dated yesterday from Education Department General Counsel Michael Best. In it, Best writes that while in office Klein recused himself from any work on Wireless Generation contracts as soon as the company was acquired by News Corp. in late November
It's about time, indeed far overdue, that somebody glommed on to the conflict of interest thing.ReplyDelete
That' why Liu is getting attacked by the Post and the DN so harshly - he actually provides real oversight over business as usual and they don't like that.ReplyDelete
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