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Warwick mayor asks Rhode Island police to investigate six-figure school contracts

Eli Sherman and Tim White

2 hours ago

WARWICK, R.I. (WPRI) — Target 12 has learned that Warwick Mayor Frank Picozzi has asked Rhode Island State Police to investigate allegations that the school district improperly awarded six-figure contracts to a moving company with family ties to a school employee.

The mayor confirmed Friday that he had contacted state police and asked them to independently investigate the circumstances under which the city’s school district awarded the lucrative contracts to Jada Trucking, a Warwick-based moving company that was not licensed to do such work.


“I don’t suspect anything bad happened other than procedures not being followed, but we will do our due diligence,” Picozzi told Target 12. “The case will be investigated very thoroughly.”

Lt. Col. Robert Creamer confirmed the case has been referred to the state police financial crimes unit. Picozzi said he first learned of the concerns the week of July 15 and contacted state police last week after the school district launched its own internal investigation.

“This important investigative process will determine whether those responsible for our day-to-day facility management have followed all applicable purchasing laws and regulations,” Warwick School Committee Chair Shaun Galligan said in a statement.

“Until our investigation is complete, the school board is implementing additional, temporary purchasing restrictions,” he added. “Once our thorough investigation is complete, the school committee and board will take any significant actions necessary with respect to personnel and procedures.”

Superintendent Lynn Dambruch said the district is “taking this matter very seriously” and has hired outside attorney Tim Groves to conduct the internal investigation.

Astro of New England, another moving company, first raised concerns about the bidding process after Astro owner Chuck Lamendola noticed that Jada was awarded the contract in late June without ever seeing that the county had put the contract out to public bid.

He also pointed out that Jada owner David Oliver is a cousin of Kevin Oliver, the school district’s facilities director, whose name appears on Jada’s contract documents presented to the school board in recent months.

“It stinks to high heaven,” Lamendola told Target 12 on Friday.

David Oliver dismissed the criticism and said his cousin never had anything to do with him receiving the work. Kevin Oliver did not immediately respond to a request for comment.

David Oliver said he learned through word of mouth that the district needed moving services for some large, upcoming school projects, so he contacted the school building department and offered to do the work.

He said he received a contract worth about $105,000. A second contract worth nearly $200,000 went to his company but was later withdrawn after concerns arose about the bidding process.

“Kevin Oliver was not involved in anything,” David Oliver told Target 12 on Monday.

David Oliver acknowledged that he made a mistake in requesting the contract, not realizing that he did not have the appropriate license from the RI Division of Public Utilities and Carriers. In the past, David Oliver said, he typically worked as a subcontractor under licenses from other companies, including Astro.

“It was an honest mistake on my part,” David Oliver said, adding that he immediately stopped working for the school district after realizing he did not have a license. He has since applied to the state for a license and said his application is pending.

“This is the first time I’ve gone out and done everything myself,” he said. “Missing a registration was just an honest mistake.”

Lamendola first raised his concerns with the district and then reached out to Picozzi after he said the district “rebuffed” him. Picozzi confirmed Monday that the second contract, originally awarded to Jada, had been rescinded and the district would re-bid it.

“This is a developing situation, so I don’t have much information right now,” he said. “I don’t suspect anything bad, but I would like the state police to confirm it.”

Eli Sherman ([email protected]) is an investigative reporter for Target 12 News. Contact him on twitter and on Facebook.

Tim White ([email protected]) is Target 12’s senior editor and lead investigative reporter and host of Newsmakers for 12 News. Contact him at Þjórsárdalur and Facebook.