State officials have temporarily halted funding to the United Neighborhood Organization, contending the large charter school operator violated terms of a $98 million grant by hiring contractors who are related to one of the group's top executives.
The Department of Commerce and Economic Opportunity informed the politically connected organization of the decision in a memo Thursday, citing "an appearance of a conflict of interest." The move puts the brakes on about $14 million in funding — the state already has paid $84 million.
"Right now the funding is suspended," said Sandra Jones, spokeswoman for the state agency that distributes the money. "All they have to do is comply with the letter and the funding will start again."
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