AT THE BISD, RUMORS OF EZ PAYOFF FOR JOE ROD, CHAVEZ

By Juan Montoya
The ink isn't even dry on the proposed combined $180,000 settlement between the Brownsville Independent School District insurance companies and trustee Joe Rodriguez and his protege Rivera football coach Tom Chavez and tongues have already began to wag.
We have heard from at least a half dozen sources that co-defendant (and forensic auditors) Defenbaugh and Associates did not want to go along with the settlement but relented when the district's attorney Baltazar Salazar convinced the BISD insurance companies' lawyers to close the deal.
Former trustee Rick Zayas represented Rodriguez in the lawsuit.
Although the board of trustees has not voted on the settlement, our sources indicate that it is a done deal and that the insurance companies are forking over the dough to the two "injured" parties.
Rodriguez and Chavez filed the lawsuit after a board majority authorized and released a forensic audit performed by Defenbaugh and Associates for the BISD in 2012 which documented sports equipment sales by Rodriguez to the district that went through then-Athletic Director Chavez. At the time, Rodriguez was listed as a vendor with the district for BNS sports.
The report stated that the role that Rodriguez played in the procurement of sports equipment after he left the district was examined by the forensic auditors. In a section devoted entirely to his business dealings with the district through his longtime protege Chavez, they wrote that they investigated allegations of Rodriguez used undue influence to do business with the BISD.

There was entirely no mention of the audits performed by BISD on his scholarship fund-activity using his nonprofit where allegations that district, state, and federal laws may have been violated.

Initial allegations were that Rodriguez used undue influence and coercive tactics to pressure BISD coaches, athletic coordinators, and athletic personnel to purchaser sports uniforms and equipment from a company, BNS Sports, Rodriguez became a sales representative for after he left BISD in Dec. 31, 2009.

In addition, Rodriguez was said to have made a telephone call to Margarita Pizano-Flores in Sept. 2011 where he had threatened to sue BISD because the Purchasing Department had changed and improved the Catalog/Co-op procurement process.

Investigation and analysis subsequently revealed that a substantial amount of payments of uniforms and equipment totaling $497,117 in fiscal year 2010-2011 were made compared to the previous fiscal years (2009-2010) total of $175,715; an increase of 283 percent.

Interviews identified most of the purchasing was made by the athletic department, in general, and by Chavez, in particular. Chavez, an admitted close friend with Rodriguez for over 30 years, succeeded Rodriguez after he left BISD.

Record reviews of purchase orders also supported the fact that the athletic department fulfilled most of those purchases, predominantly for Manzano Middle School and Veterans Memorial High School, both newly constructed schools with no prior uniforms or equipment. Although Chavez denied giving preferential treatment to BNS and/or Joe Rodriguez in the purchasing process for both schools, the auditors found that Chavez never gave any due consideration to at least three other approved vendors sports distributors.

At the beginning of September 2011, BISD's Purchasing Department changed the Catalog/Co-op procurement procedure shifting control of catalog procurement process from the end-user, Athletic Department, to the Purchasing Department. This change provided more internal control and was the apparent reason for Rodriguez's telephone call to Lead Auditor Margarita Pizano-Flores after the realization that BNS would have to be more competitive in terms of price.

Shortly thereafter the other sales representative at BNS informed the Purchasing Department that a 10 percent discount would be rendered on BNS catalog items.

The report stated:
"It is the opinion of the Forensic Audit Staff that no doubt the Athletic Department in general and Tom Chavez in particular exercised undue influence and misuse of authority in choosing BNS Sports, through their sales rep. Joe Rodriguez, particularly in the purchasing of uniforms and other sports supplies for Manzano Middle School and Veterans Memorial High School in school year 2010-2011.

(This) resulted in close to $500,000 of purchases being given to Chavez's close friend and former A.D. Joe Rodriguez. Chavez allowed he and Joe Rodriguez's personal relationship to interfere with what should have been a business decision causing a potential loss of revenue to be sustained by the district.

The Forensic Audit Staff recommended that a no-solicitation clause be included in future employment contracts and that BISD make a determination with respect to a (vendor such as BNS) whose representative (Joe Rodriguez) issued a threat over the telephone to file a lawsuit against the district.

It is the opinion of the (auditors) that Chavez and his AD staff afforded BNS preferential treatment to the detriment of the district. Consideration should be given to administrative action disciplining Tom Chavez with termination as a consideration."
From what we understand, Defenbaugh's attorneys were ready to tangle in court this Sept. 8, but the BISD's retreat put an end to those plans.
Now, Coach Joe has a penchant for leaning back on his chair and bellowing about the district not paying settlements to anyone for anything. Apparently, it's a "do as I say and not as I do," proposition for him.