Three high-ranking TUSD officials, including the chief operations officer, have been placed on administrative leave as a result of a state attorney general's investigation that found district employees broke state law and procurement rules.
The employees will stay home while Tucson Unified School District officials determine what, if any, disciplinary action will be taken as a result of the findings, which determined several employees and vendors from 2004 through 2008 violated antitrust laws, conflict-of-interest statutes and procurement rules.
The employees are still drawing full pay and benefits.
The findings have not been released by the Attorney General's Office so it remains unclear what the allegations are against each employee. A consent decree signed by the TUSD Governing Board, however, generally acknowledged at least one:
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• Had improper contact with prospective vendors during what is intended to be a competitive purchasing process.
• Gave inside information to some vendors to give them an edge over the competition.
• Accepted gifts and gratuities from prospective vendors.
• Violated standard requirements to obtain a minimum number of quotes and permitting work to begin before issuing purchase orders.
The investigations began after questions arose about TUSD's procurement of technology and E-rate consulting services in late 2005 and early 2006. E-rate is a federal program that distributes money to schools and libraries to improve computer and telecommunication networks.
The inquiry was expanded in 2008 to include the district's purchasing of interactive white boards for classrooms across the district.
The inquiry into contract irregularities has resulted in millions of dollars in federal monies being withheld from TUSD, putting on hold the district's efforts to upgrade its aging technology equipment and increasing Internet bandwidth in schools.
The consent decree, which will be in effect for three years, resolves without trial the civil liability of the district. In exchange, the district agreed to pay $7,500 and to comply with a host of new safeguards, including special audits every six months.
TUSD spokeswoman Chyrl Hill Lander said the three employees had been "assigned to home" with pay pending determination of any formal action.
The highest-ranking of the trio is Rudy Flores, the chief operations officer, who has been one of the district's rising stars, serving on the superintendent's executive team and even going on the first round of Disney management training, one of the superintendent's pet programs.
Flores, who has been with the district since 1992, earns more than $102,000 annually.
Lisa Long, the district's curriculum director, has been with TUSD since 1986 and makes more than $81,300.
Ed Kowalczyk, a technology coordinator, retired last July after nearly 27 years with TUSD. He was brought back as a contract employee this year with a salary of $56,790.
Lander could not provide a range of disciplinary actions the employees might face or say when those decisions would be made.
Among other requirements, the consent decree stipulates that employees won't accept meals, lodging, gift cards or other perks from vendors.
No work will be initiated by a vendor until a purchase order has been issued.
Employees can't meet, call or e-mail vendors before a competitive-bid process begins, except for routine contact necessary to keep the process moving forward. The agreement specifies that only purchasing employees should have any contact with vendors.
Employees who deal with vendors in any way will be retrained in appropriate purchasing policies by June.
Mark Stegeman, a University of Arizona professor and new member of the TUSD Governing Board, in a written statement called the activities described in the investigators' complaint as "completely unacceptable."
"From this point forward, I hope that it becomes clear to everyone that TUSD expects the highest standards of professional conduct in procurement and all aspects of financial management."

