Gov. Kevin Stitt said Tuesday he has ordered a new lawsuit against a Florida company over what federal auditors said was his own administration’s mismanagement of a $31 million COVID-19 education fund.
Gov. Kevin Stitt on Tuesday announced that he has ordered a new lawsuit against a Florida company over mismanagement of a $31 million COVID-19 education fund.
A previous lawsuit, filed in 2022, was dismissed by Attorney General Gentner Drummond after he took office in January 2023. At the time, Drummond described the suit as “almost wholly without merit. It is clear that a number of state actors and other individuals are ultimately responsible for millions in misspent federal relief dollars.”
On Tuesday, though, Stitt again blamed Kleo Inc., the parent company of vendor ClassWallet, for the failures described in a highly critical federal audit of Governors’ Emergency Education Relief funds.
“The pandemic was a difficult and unprecedented time for all Oklahoma families, and it was our goal to do all we could to swiftly ease some of the burdens lower income families faced as they struggled to keep their kids in school or otherwise to do school from home,” Stitt said in a press release.
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“A vendor, which said it would eliminate the possibility of fraudulent use of grant funds, didn’t uphold its end of the contract and taxpayer dollars were misused. We have to hold this vendor responsible and protect Oklahoma taxpayers from being left holding the bill.”
Federal auditors, though, said the administration, including current State Superintendent Ryan Walters, rebuffed ClassWallet’s control recommendations and allowed at least $650,000 in inappropriate expenditures. The audit was critical of the administration’s oversight of the entire $31 million program.
According to the state’s online court records system, the Office of Management and Enterprise Services, which is overseen by the governor, filed suit in Oklahoma County District Court on Tuesday.
The lawsuit itself was not available online, and it was unclear who is representing the state, given that Drummond declined to pursue the earlier cause.
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