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SEPTEMBER 19, 2000

A reported $1.9 million intended for Indian children in two school districts in South Dakota and children on military bases was diverted to a bank account in Maryland, allegedly paying for a house and two cars.

The Department of Justice filed a civil action in July over the missing money. Although the money came from the Department of Education, no employees within the Department are said to be involved.

Auditing problems at the Department are the topic of a hearing before the House Education and Workforce Committee today. Two bills also propose to authorize the General Accounting Office to audit departments prone to abuse.

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Another theft from Education Department raises lawmakers' concern (AP 9/19)