Charter school founder Ref Rodriguez is running for the Los Angeles school board, seeking to beat incumbent Bennett Kayser. Kayser is known for his insistence that charter schools be financially transparent and accountable for their use of public funds.

The Los Angeles Times reported that the charter school chain co-founded by Rodriguez (who is its treasurer) is embroiled in financial scandal.

“A Los Angeles-based charter group awarded food-service contracts worth millions of dollars to a company partially owned by one of the schools’ high-ranking employees, a state investigation has found.

“The probe involved Jacqueline Duvivier Castillo, who is the director of business and development for PUC Schools and a part-owner in Better 4 You Meals, a company that has provided food to the charter group for the last five years. Investigators said the charter failed to demonstrate that the contract was “awarded properly despite the apparent conflict of interest.”

“Late Saturday, the charter organization said in an email to The Times that Duvivier Castillo would no longer be an employee of PUC….

“Duvivier Castillo failed to properly report her financial interests in the company. The company was ineligible for the food contracts because it lacked a health permit and relied on a subcontractor to prepare meals. PUC Schools did not select the lowest-priced bidder as required.
One of the area’s largest charter groups, PUC serves about 4,800 students in 15 schools, including in the east San Fernando Valley and north of downtown. PUC’s test scores typically compare well with nearby traditional neighborhood schools. It recently started a national organization that opened a campus in Rochester, N.Y….”

Charter officials said they were unaware of the conflict of interest but official documents showed otherwise.

“Tax documents for 2010 list the company as a vendor in filings signed by Rodriguez or Elliot. PUC, the documents said, was “party to a business transaction” with a “key employee.”

“The charter’s tax returns for 2012, however, no longer listed the company as a vendor.

“Company documents provided by the state show that Duvivier Castillo’s husband, Fernando Castillo, is a top official with the company, which provides meals for students at more than 100 charter and private schools.

“He could not be reached for comment.

“Annual audits paid for by PUC and released by the state indicated charter officials knew of the alleged conflict of interest.

“Additionally … PUC has signed a contract with a company that is one hundred percent owned by PUC’s director of business and development,” the PUC audit said. “PUC’s management believes that all transactions, including the bidding process, were done in arm’s length.”

“According to these audits from PUC, the charter group paid Better 4 You Meals more than $339,000 in 2011, more than $947,000 in 2012 and about $970,000 in 2013. No figures were available for other years.

“Charter officials reported to the state that Duvivier Castillo had a controlling interest in the company until 2014. She and her husband now have 19% stock ownership, charter officials said.”

Karen Wolfe is a public school parent in Los Angeles:

She writes:

“Just like a rash of neighborhood robberies reminds us to double check that our doors are locked, Ref “Reformer” Rodriguez’s campaign to take the school board seat away from experienced educator Bennett Kayser reminds us how vulnerable we are.

“One recent alarm came in the form of an invitation to a fundraiser at the home of Frank Baxter (supporter of charters since they were a twinkle in his eye, in the 1990s, and now co-chairman of the board of the Alliance charter management organization).

“The Special Guest was none other than Marshall Tuck, the recently defeated candidate for California Superintendent.

“Defeat is no obstacle for someone like Tuck. Sure, in addition to losing his election, he was left off the “really good list of ed reform leaders in LA :)” which LA School Report publisher Jamie Alter Lynton sent to her husband, Sony chief Michael Lynton. (Readers can see the whole list in the treasure trove of leaked Sony emails exposed on WikiLeaks.)

“So, at the Ref Rodriguez fundraiser, Marshall Tuck was the Special Guest.

“The suggested donations were $500-$1100 per person. Why stop at $1100? I thought the LA City Ethics Commission in January raised the campaign donation limit to $1300. Maybe supporters are purposely reserving $200 because it’s just enough for a trip to Walmart for campaign supplies–valet parking included. That’s what Students For Education Reform disclosed spending on April 13, working *independently* to defeat Bennett Kayser.

“Humor aside, it turns out $1100 is the donation limit, and $200 in receipts is not even a drop in the bucket to Walmart of course. The billionaire retailer is waging a war on labor unions and the quickest route is through public schools.

“No one has stood up more consistently for the school district’s union partners than Bennett Kayser. So where is the brotherhood and sisterhood as we fight to protect and restore our schools? As Bennett Kayser wages the campaign fight for his life?

“According to folks close to Kayser’s campaign, SEIU has stepped in. This is surprising to education activists who have been unnerved by SEIU’s advocacy for former superintendent Deasy and other privateers. Let’s hope they increase their support tremendously–immediately. But where are the teachers, for whom Bennett Kayser—a former classroom teacher—has been a steadfast supporter? While UTLA strongly backed Bennett Kayser in the primary campaign, their organization is invisible as we near the finish line.

“Bennett Kayser is being outspent by charters 9:1. But if every teacher that lives in Board District 5 brings in two votes, Bennett Kayser will win and, once again, people will win over corporate power. UTLA can provide the kind of support that can make a monumental difference. They need to do it today.

“The alarm is sounding for Bennett Kayser’s campaign.

“Anyone wishing to volunteer can contact 323-535-9930 and donations can be made at http://www.bennett2015.com/donate-online.html. Every single bit helps.”

As the next school board election approaches, the audit of a charter school run by a candidate for the board has been withheld.

The candidate, Ref Rodriguez, is the darling of the privatizers. Apparently, his ally on the board Minuca Garcia asked to delay release of the audit until after the election. This is outrageous!

His opponent is Bennett Kayser, who has criticized the charter industry. The industry has made it a priority to unseat him.

Frankly, it should be a conflict of interest for a charter operator to be a member of the board that allegedly oversees his operation.

Los Angeles needs sunlight. It needs to see the audit of Ref’s school. It needs board members dedicated to serving the public interest, not the charter industry.