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By MARK GUYDISH [email protected]
Thursday, November 08, 2001     Page: 1A

PITTSTON TWP. – Jokingly calling himself the “stealth consultant,” Biagio
Musto pulled out reams of paper he says document work he did for the Luzerne
Intermediate Unit that a state auditor general report called “questionable.”
   
The report, released Friday, says LIU Executive Director Kevin O’Connor
misspent $195,000, including $11,200 paid to Bishop Hoban High School as
reimbursement for an unnamed consultant. The report says there is no LIU
record of work done for the money.
    The Times Leader reported Tuesday the consultant is Biagio Musto, the
brother of state Sen. Raphael Musto, D-Pittston Township.
   
Sitting in his home office Wednesday, Biagio Musto freely detailed how he
became involved with the LIU in 1999 and the work he did through May 2000. He
laughed at the apparent secrecy created by the report’s failure to name him.
   
“These are my stealth materials,” he said smiling and pointing to
wall-to-wall bookshelves.
   
Musto said he worked at Children’s Service Center of Wyoming Valley in the
1980s, then with the state Department of Education in Harrisburg until he
retired in April 1999.
   
At that time, Children’s Service Center hired him as a consultant to
develop alternative education programs for clients from the Wilkes-Barre Area
School District.
   
That led to a meeting with O’Connor. The LIU offers a wide range of
services to area school districts, including an Alternative Learning Center
for children with acute behavioral problems. In December 1999, O’Connor told
Musto he wanted to improve that center and services offered to nonpublic
schools.
   
O’Connor and Musto reached a verbal agreement. “My consulting price is $65
an hour,” Musto said. “I figured about 240-250 hours.” Musto agreed to
charge a flat fee of $1,600 a month regardless of the hours each month,
promising not to charge more than $16,000 and to refund any money if it took
less time than expected.
   
Payment would come from the LIU through an existing arrangement with Bishop
Hoban, because the work initially would focus on that school and its feeder
elementary schools.
   
Musto said the work broke down like this:
   
Reviewing documents O’Connor didn’t have time to scrutinize. “He didn’t
want to be blindsided by changes in the rules for nonpublic services,” Musto
said, showing numerous documents and faxed letters dated 1999 and 2000, as
examples. That work totaled about 20 hours.
   
Devising an allocation system for state grant money funneled through the
LIU to nonpublic schools for computer education under a the state “Link to
Learn” program. Musto showed tables an allocation system he devised for all
nonpublic schools in the LIU coverage area. This took about 45 hours.
   
Revamping a federal “Safe and Drug-Free” program administered by the
LIU, and devising a comprehensive “student assistance” program for nonpublic
schools. That state program sets up training and teams to detect student
problems – such as drug use – and provide treatment or other services.
   
Musto said he worked about 30 hours, and provided a copy of the final
student-assistance plan he had hoped to launch in early 2000.
   
Improve communication between LIU department heads to make sure nonpublic
schools got all the services available. Musto showed a plan he devised and
said he met twice with the directors, working about 14 hours on the project.
   
Musto said he offered to show his papers to the auditor general inspector,
but all the inspector did was focus on LIU documentation. The report does not
fault Musto, but does criticize the LIU because there were no contracts
invoices or other proof the work was done.
   
Musto said he was working directly with O’Connor and had no reason to check
if the board had been notified. “What the screw up was, I don’t know.” He
said he reported to O’Connor, showing the progress and documents, and would
have provided invoices if O’Connor had asked.
   
All of the projects involved extensive research and office work before any
school involvement, Musto said, which was why he did not have to visit Hoban
or other schools. In fact, many of the projects had just reached the point of
school involvement in May 2000, when the LIU board put O’Connor on paid leave.
   
The day before, O’Connor and Musto had met with officials from the Diocese
of Scranton, and they rejected Musto’s proposals. He then refunded $7,200 of
$12,800 paid under the monthly fee plan, keeping $6,500 for the roughly 100
hours of work done.
   
Musto also said the phone number listed in the book is his, and that it was
a fluke that he was out and his son, who has the same name, answered when
called by a reporter on Monday. He said he didn’t have time to call back until
Wednesday morning. He also said he, not his son, is the Biagio Musto
registered to vote in Luzerne County.
   
Mark Guydish, a Times Leader staff writer, may be reached at 829-7161.