Gov. Pat Quinn has put a halt on state funding for UNO's school construction grant for the second time this year. This news comes one day after news broke that the U.S. Securities Exchange Commission is investigating Illinois' largest charter school operator for possible federal securities violations.
“As a result of our own internal review conducted earlier this year, we have not approved any new projects, and we have suspended future capital projects,” Quinn spokeswoman Sandra M. Jones told the Chicago Sun-Times.
The state has reportedly suspended the last $15 million allocated to UNO out of the $98 million grant meant for school construction, which was passed by the state legislature in 2009.
In April, the state suspended the funding as a result of insider deals after the Sun-Times broke the news that a hefty portion of the construction work being done was by companies owned by two brothers of Miguel d’Escoto, a former top UNO executive. The brothers' companies, d’Escoto Inc. and Reflection Window Co., were paid a total of $8.5 million for the construction work. Miguel d’Escoto resigned from his job at UNO eight days after the newspaper shed light on the dealings.