A recent investigation by the federal government uncovers 12 Detroit principals stealing nearly $1 million in kickbacks and bribes, adding insult to injury as Detroit Public Schools already face poor conditions, underfunding and enormous debt.
One of the principals targeted is Spain Elementary-Middle School Principal, Ronald Alexander, who became the recipient of a $500,000 dollar donation on the Ellen DeGeneres show. In a clip, the school is shown to be in shambles: students are forced to wear coats in the classroom due to lack of heat, the gym is inoperable and so PE classes are performed in the hallways, the roof is falling apart and almost all of their technology does not work.
School counselor, Lakia Wilson, wrote on PBS Newshour's education blog that "the odorous smell of mold and mildew hits you like a brick wall" when entering the school. Ellen DeGeneres donated $500,000 to the school after seeing its state of disrepair. Justin Bieber even made a guest appearance and pledged to donate $1 of every ticket sold for an upcoming concert to Spain Elementary.
Ronald Alexander smiled jubilantly into the camera and said, "Of all the people in the world, I am the happiest principal on Earth. I love you! I love you again! This is the best."
While not related to donations from the show, Alexander allegedly took $23,000 in kickbacks and bribes.
Norman Shy, 74, is a businessman at the center of the scheme and is accused of paying $908,500 in kickbacks and bribes to at least 12 Detroit Public Schools principals.
These principals have been using Shy as a school supply vendor, submitting fraudulent invoices in exchange for the kickbacks and bribes through his ownership of Allstate Sales. Through these invoices, Shy has allegedly received $2.7 million from the school system.
Former principal of Henderson Elementary Clara Flowers, is the biggest offender of this scandal, who is accused of accepting more than $324,000 since 2009. Shy would keep a ledger of how much he owed Flowers, and the kickbacks came in the form of cash, gift cards and payments to contractors who renovated her house, according to documents cited by the Detroit Free Press.
The news comes at a critical time as the state struggles with fixing the finances of the Detroit district, accumulating an operating deficit of at least $515 million under the control of a state-appointed emergency manager since 2009. Many are calling into question the effectiveness of emergency managers appointed by the state. A financial review commission has been placed to oversee Detroit Public School finances.
“This is exactly why House Republicans were so adamant that strong fiscal oversight be a prerequisite to any additional state funding for Detroit’s corrupt and broken school administration," said Speaker of the House Kevin Cotter, R-Mt. Pleasant in a news release. "And it is why we will continue to insist that strong financial and academic reforms be a part of any long-term solution to decades of DPS failures."
Detroit Public Schools have a total debt nearing $3.5 billion with the multi-million dollar bribery scheme only adding insult to injury. Michigan Gov. Rick Snyder signed into law $48.7 million in emergency funding for the schools a week before the allegations were made.
Only one of the attorneys for all 14 defendants offered to comment. Most were unavailable and two declined comment, saying it was too premature to discuss the case.
The charges against the defendants are from an audit of the Education Achievement Authority, which was supposed to oversee and help Detroit's schools. Red flags were raised, including that of former principal Kenyetta Snapp, who pleaded guilty to bribery two months ago.
There has been debate over whether the state should help aid the struggling school system, with U.S. Attorney Barbara McQuade commenting that Detroit Public School's financial insecurity has nothing to do with the current charges.
"Public corruption never comes at a good time," McQuade said in an interview with the Detroit Free Press. "This case is not about DPS. It is not about emergency managers. It is about these 14 individuals who breached their trust."
The following are being charged for accepting bribes and kickbacks according to a report by the Detroit Free Press:
- Beverly Campbell: former principal of Rosa Parks School and Greenfield Union Elementary-Middle School, accused of accepting $50,000 in bribes and kickbacks through Shy.
- Clara Smith: principal of Thirkell Elementary-Middle School, accused of accepting $194,000 in bribes and kickbacks through Shy.
- Clara Flowers: charged with tax evasion after receiving $324,785 in bribes and kickbacks through Shy.
- Germla Johnson: former principal of Earhart Elementary-Middle School, accused of accepting $22,884 in bribes and kickbacks through Shy.
- Ronnie Sims: former principal at Fleming Elementary and Brenda Scott Middle School, accused of accepting $58,519 in bribes and kickbacks through Shy.
- Norman Shy: charged with tax evasion for fraudulent invoicing $2.7 million and paying over $900,000 in bribes and kickbacks
- Tanya Bowman: former principal at Osborn Collegiate Academy of Mathematics, Science and Technology, accused of accepting $12,500 in bribes and kickbacks through Shy.
- Ronald Alexander: principal at Charles L. Spain Elementary-Middle School, accused of accepting $23,000 in bribes and kickbacks through Shy.
- James Hearn: principal at Marcus Garvey Academy, accused of accepting $11,500 in bribes and kickbacks through Shy.
- Josette Buendia: principal of Bennett Elementary School, accused of accepting $45,775 in bribes and kickbacks through Shy.
- Nina Graves-Hicks: former principal at Davis Aerospace Technical High School, accused of accepting $27,385 in bribes and kickbacks through Shy.
- Stanley Johnson: principal at Hutchinson Elementary, accused of accepting $84,170 in bribes and kickbacks through Shy.
- Tia'von Moore-Patton: principal at Jerry L. White Center High School, accused of accepting $4,000 in bribes through Shy.
- Willye Pearsall: former principal at Thurgood Marshall Elementary School, accused of accepting $50,000 in bribes and kickbacks through Shy.