Sep 28, 2009
The inspector general of DPS (Detroit Public Schools) announced that the school district overspent millions of dollars in real estate deals 15 years ago.
The people of Detroit certainly can be excused for feeling a bit cynical about the current state-appointed administration of DPS unearthing corruption during a previous state takeover of DPS!
The figures are revealing nonetheless. In 1994 DPS bought five properties, assessed by the city at $640,700, for nearly 4.9 million dollars.
Who pocketed this generous gift of more than 4.2 million dollars?
Among others, a certain Farbman Group is mentioned by investigators. In one particular deal, a property assessed at $57,800 was bought by Detroit Property Acquisition, a Farbman subsidiary, for $550,000. Interior Systems Inc., a company hired by DPS, bought it from DPA for $701,500, and sold it to DPS for $743,590 the same day!
The same pattern of transaction was seen in all purchases under investigation.
DPS has long served as a cash cow for every well-connected speculator in the city. There is no reason to think that, 15 or 20 years from now, another district investigation will not reveal some corrupt deal that’s being made under today’s state-run DPS administration.