Texas Pharr-San Juan District in Disarray Amid Bribery Scandal

DALLAS — Amid a corruption scandal that has decimated the Pharr-San Juan-Alamo School District board in Texas, incoming superintendent Daniel King faces the daunting task of restoring the district’s credibility as his predecessor— who was arrested this week — prepares a defense against bribery-related charges. King, currently Texas superintendent of the year for his work at the neighboring Hidalgo Independent School District, has already begun advising PSJA’s deputy superintendents, though he does not officially start work until July 1. King, 53, said he accepted the job last year despite knowing the impoverished district in the Lower Rio Grande Valley was under investigation by the Federal Bureau of Investigation. On Tuesday, the FBI arrested school board members Raul “Roy” Navarro and Vangie Garcia-De Leon, along with longtime superintendent Arturo Guarjardo. Garcia-De Leon’s ex-husband, Ricardo De Leon, and contractors George Hernandez and Arnulfo “Arnie” Olivarez were also indicted for serving as middlemen in a kickback scheme. School board member Rogelio “Roy” Rodriguez and two contractors were arrested in March as part of the federal bribery investigation. Rodriguez was arrested again this week on separate charges.“It’s not a lot of fun coming in the middle of something like this,” King said. “But there are a lot of people doing great jobs. Unfortunately, there’s a cloud over them.” One of the tasks King will face is bringing $35 million of bond money to market. The bonds, approved overwhelmingly in May as the investigation was in full swing, may not be sold until next spring. Before the sale, he anticipates meeting with ratings analysts to explain his clean-up plan for the district. “I haven’t been able to think along those lines yet,” he said. The illegal activity began soon after PSJA voters approved bond issues in 1997 and in 1999 for construction projects totaling more than $100 million, according to the indictment that was unsealed this week. This week’s arrests are a continuation of an investigation that began in 2005 and led to an indictment of school board member G. Jaime Santa Maria. Santa Maria, who pleaded guilty to lesser charges in 2006, was also named in the new indictment but did not face any new charges. He is no longer on the board. King said he does not know if the indicted board members will try to keep their seats on the seven member board as they are allowed to do. The board members and the others under indictment could not be reached for comment. In announcing the arrests, U.S. attorney Don DeGabrielle and FBI officials warned that federal vigilance will continue. “Citizens have the right to expect that their elected trustees and school officials will conduct themselves honestly and in the best interest of the district, not themselves,” DeGabrielle said. Between 1998 and 2004, gifts from contractors were provided to board members and district officials in exchange for contracts related to school repair work, construction of sports facilities, and insurance plans for district employees, according to the indictment. Two former PSJA school board members and seven other contractors are referred to in the indictment, but their names were not included. One of the unnamed individuals was identified as being in the financial services industry. All of the public officials and contractors named in the 22 counts of the indictment were charged with extortion. The indictment tabulates more than $600,000 in gifts that included several trips to Las Vegas where prostitutes were hired. Junkets to nearby South Padre Island also were provided.