This Philly charter awarded a big contract to a board member’s friend, then punished the official who reported it, a lawsuit says
The school's business manager raised enrollment, payroll, privacy and tax issues with his managers, after which he experienced "increasingly hostile and retaliatory conduct,” a lawsuit says.
When Raheem Harvey discovered possible improprieties at his new employer, Alliance for Progress Charter School in North Philadelphia, he sounded the alarm.
Harvey, the director of business and compliance, notified officials earlier this year about what he saw as significant issues, he said: violations of state and local bidding requirements, a contract issued without board approval, and board members’ failure to disclose personal relationships with potential vendors.
He flagged a student enrollment problem and skipped payroll taxes.
Alliance for Progress’ leader and its board brushed him off, Harvey said in a recently filed whistleblower lawsuit. Ultimately, they disciplined him and, after threatening to demote him, he resigned.
School officials say Harvey’s story is untrue.
“We categorically deny all the allegations asserted by this disgruntled former employee,” Stacey Scott, CEO of Alliance for Progress, said in a statement.
Officials from the Philadelphia School District’s charter school office had no comment.
What are the allegations?
Harvey started working at Alliance for Progress, on Cecil B. Moore Avenue, in February.
By August, he began raising issues to his bosses, Harvey’s lawyers said in a lawsuit filed in Philadelphia Common Pleas Court.
They included a contract issued to a vendor for services related to a school playground — worth more than $75,000 — that was awarded without competitive bidding.
Alliance for Progress, Harvey said, “directly awarded the contract to a vendor whose principal is a personal friend of one of the AFPCS board members. The board member did not recuse himself from discussions or decisions related to the contract, despite the clear conflict of interest created by his close relationship with the vendor” — a violation of ethics rules, he said.
Harvey also said the school failed to follow state rules around enrollment procedures. Alliance for Progress says it provides enrollment preference for siblings of students. But, Harvey said, the school ignored him “and failed to apply its own sibling-preference policy to the sibling of a currently enrolled student. Instead, AFPCS placed the sibling on a waitlist and later pressured the child’s parents to withdraw the enrollment application.”
Scott, Harvey said, also violated federal privacy laws by providing someone outside the organization access to a student’s educational records — including academic and disciplinary records — without parental consent.
School officials also used Alliance for Progress credit cards to purchase food and other items through their personal accounts, according to the lawsuit complaint, “allowing them to aggregate rewards points and loyalty benefits that they did not return to AFPCS.”
Alliance for Progress also paid a retired employee for work with a paper check instead of going through its payroll system, the complaint alleges.
The school “issued payments in this manner to enable the retired employee to avoid paying taxes on the wages she received,” the lawsuit said.
‘Hostile and retaliatory’
According to Harvey, once he reported the compliance problems, Scott and other officials began targeting him — suggesting he was opening packages addressed to the school without authorization and purchasing office supplies without proper authorization.
Harvey was shut out of leadership meetings, the suit said, then reprimanded for failing to show up to a meeting, entering Scott’s office without permission, and placing an unauthorized order.
“Increasingly hostile and retaliatory conduct” was directed toward him, Harvey said. He was suspended for 10 days, and had his keys to the administrative offices taken away.
In September, a human resources official told Harvey “that he should forget about the compliance issues he had raised because they had been resolved” but provided no evidence. Harvey said she told him Alliance for Progress planned to demote him.
The school’s “wholesale failure to remediate the compliance concerns” and its “refusal to implement safeguards to protect him” from retaliatory treatment ultimately caused Harvey to resign on Sept. 30, according to the lawsuit.
Harvey is demanding reinstatement, plus back pay, benefits, seniority rights, and damages.