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School Internet Program Audit Shows Fraud and Waste

uid0mako writes "CNN is reporting on the abuses of E-rate. E-rate is a government-sponsored program that provides discounted Internet access and internal connection gear such as wiring, adaptors and servers to underprivileged schools. One of the incidents includes $24 million spent on 74000 wireless network cards that never left the loading dock."

12 of 387 comments (clear)

  1. Do tell!!!! by dreamchaser · · Score: 5, Funny

    What, fraud and corruption in a government run program paid for by the little guy? I find this so hard to believe!

    *note to the sarcasm imparied: my tongue was firmly in cheek.

  2. I'd say thats fraud: by wishiwascool · · Score: 5, Insightful

    24000000 / 74000 = ~$324/NIC

    guess they weren't buying Netgear cards at that price... ouch!

    1. Re:I'd say thats fraud: by Sancho · · Score: 5, Funny

      The prices probably included thousands--if not millions--of feet of wireless ethernet cable.

  3. Remodeling at ratepayer expense by John+Jorsett · · Score: 5, Interesting

    Shortly after this program started, one of our local schools wired itself, and oh-so-coincidentally did it in a way that required recarpeting and painting the entire place to repair the "construction damage". All paid for out of the fund of course. I'll bet there are ten times more little scams like this that add up to way more than the big noticable ones.

  4. Situation Nortmal... by BJZQ8 · · Score: 5, Insightful

    I have watched the e-Rate program since its inception, and am neck-deep in it now...this sort of thing happens over and over again. It is a multi-billion-dollar boondoggle, typical government program. Schools are forced to hire entire staffs, or outsource, just to fill out the hundreds of pages of paperwork. The end result? Rejection, or perhaps more paperwork. But in any case, all of those billions are funneled to IT giants like Microsoft and IBM, as well as the Telecom companies that are given "preference" for their stone-age T1 technology. Want to put in your own glass fiber between buildings? Not covered by e-Rate, because that would step on the phone company's toes. Better to lease a dozen T1 lines, in their eyes. The whole thing needs to be gamma-irradiated and shot into deep space...and the "Universal Service Fee" that covers it eliminated.

  5. Heard about this on Rush Limbaugh yesterday... by JargonScott · · Score: 5, Interesting

    He was talking about a school system in Arizona (I believe) that spent some ridiculous amount on a system from IBM that was so complicated, the school system couldn't maintain it. The best part was how IBM "forsaw" that this would happen, and charged and additional $27M to build a "lavish support center" that the teachers could call for tech support.

    What the hell's wrong with these people!?! (Not IBM, I think that part is hilarious)

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  6. Socialism does not work by gcaseye6677 · · Score: 5, Insightful

    I'll keep this in mind when I get my next phone bill and notice the 30% taxes added on to it. At least half of that is the "Gore Tax", which was put to such great use as we see. Now that almost all American public schools have their intarweb installed, I see no reason to continue this financial rape of the public. This program should be phased out, since it has clearly outlived its usefulness. It's nothing less than irresponsible to suggest that a federal tax be used to pay the monthly internet bills for schools and libraries (neither of which are supposed to be federally controlled to begin with).

  7. Internet in schools... by bludstone · · Score: 5, Interesting

    Is not an entierly bad idea, but its not being done properly.

    First off, not every kid should have an internet connection. Period. The Internet is not sesame street (which every kid SHOULD have.) In fact, I consider it more like the streets of NYC, at night, in the bad part of town.

    Its simply not safe for kids to have un-guided access while at school. Blocking programs are even worse. As such, internet connections should be wide open and subjet to constant teacher review. Perhaps a single lab, with all monitors in view of the proctor would be considered adequate.

    The rest of the money here is simply wasted. The current problems with america's education system is epidemic. Youve got underpaid, unmotivated and uneducated teachers, attempting to simply control a group of apathetic and uncaring students, who have little to no motivation and guidance from their gaurdians. The problem cannot be pinned on any single group. Everyone is messing up here, equally.

    And as Americas education system continues to collapse the nation will be seriously hurt by this. A nation of unmotivated morons cannot compete with.. well.. india. Nor should we be able to. I dont know if youve looked at the job market in minute detail, but a major part of the problem is that people are too incompetant to do the job.

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  8. This just in by cubicledrone · · Score: 5, Funny

    Education bureaucrats waste large amounts of money.

    In other news, the sky was reportedly blue this morning and there seems to be a large amount of water west of Oregon.

    More late-breaking news as it becomes available. We now return you to your regularly scheduled argument about text editors.

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  9. Predictable due to design of 1996 Gore tax by XavierItzmann · · Score: 5, Insightful

    a) 1996 - Gore/Clinton tax *your* phone bill to "put internet on every school"

    b) Any school can spend whatever money and get the ERATE fund to reimburse the school

    Waste and abuse happens because this tax should not even have existed to begin with. If school districts had to spend their own money, based on *local* taxation, this sort of careless purchasing would not happen.

    You vote for politicians who introduce taxes, you bring this upon yourself.


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    The next pasture is always greener
  10. I worked at a school... by Fenis-Wolf · · Score: 5, Interesting

    That took advantage of this program. Our district received a massive government grant (in excess of 20 million? I think). This was of course split up between 5 seperate smaller districts in small towns. Each one of these districts had an elementary, middle school, and high school. In addition there was a Vocation School. This money from the government lead to a massive revamp of IT services in all those schools which included:
    -Connecting 5 towns to the Vocation School with redundant fiber lines
    -Purchasing top notch routing and server equipment for each of the schools
    -purchasing in excess of 200 brand new computers for each building
    -and the founding of an Internet Service Provider which server the area as a dial up provider and as the central hub that tied the schools together.
    It also led to the vocational school receiving much needed tech upgrades to CS labs and the Photo and Design Mac labs.
    When this government money is well spent, it can be a great force for good. But once a unscrupulous contracter gets his hands on those kind of funs, these massive frauds occur.

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  11. Apathy by mccalli · · Score: 5, Insightful
    I'm reading a lot of comments along the lines of "This is a surprise?", and "so? That's the way these things go". This is depressing.

    Look - a clear and serious fraud has been commited. People should be livid about this, even more so if this kind of behaviour is the norm. Just because it always happens doesn't make it right, and only pressure and accountability will ever sort the situation out. Shrugging the shoulders and going "so?" is really not all that helpful.

    Cheers,
    Ian