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THE NATION

Bush's Family Profits From `No Child' Act

October 22, 2006|Walter F. Roche Jr. | Times Staff Writer

WASHINGTON — A company headed by President Bush's brother and partly owned by his parents is benefiting from Republican connections and federal dollars targeted for economically disadvantaged students under the No Child Left Behind Act.

With investments from his parents, George H.W. and Barbara Bush, and other backers, Neil Bush's company, Ignite! Learning, has placed its products in 40 U.S. school districts and now plans to market internationally.

At least 13 U.S. school districts have used federal funds available through the president's signature education reform, the No Child Left Behind Act of 2001, to buy Ignite's portable learning centers at $3,800 apiece.

The law provides federal funds to help school districts better serve disadvantaged students and improve their performance, especially in reading and math.

But Ignite does not offer reading instruction, and its math program will not be available until next year.

The federal Department of Education does not monitor individual school district expenditures under the No Child program, but sets guidelines that the states are expected to enforce, spokesman Chad Colby said.

Ignite executive Tom Deliganis said that "some districts seem to feel OK" about using No Child money for the Ignite purchases, "and others do not."

Neil Bush said in an e-mail to The Times that Ignite's program had demonstrated success in improving the test scores of economically disadvantaged children. He also said political influence had not played a role in Ignite's rapid growth.

"As our business matures in the USA we have plans to expand overseas and to work with many distinguished individuals in Asia, Europe, the Middle East and Africa," he wrote. "Not one of these associates by the way has ever asked for any access to either of my political brothers, not one White House tour, not one autographed photo, and not one Lincoln bedroom overnight stay."

Funding laws unclear

Interviews and a review of school district documents obtained under the Freedom of Information Act found that educators and legal experts were sharply divided over whether Ignite's products were worth their cost or qualified under the No Child law.

The federal law requires schools to show they are meeting educational standards, or risk losing critical funding. If students fail to meet annual performance goals in reading and math tests, schools must supplement their educational offerings with tutoring and other special programs.

Leigh Manasevit, a Washington attorney who specializes in federal education funding, said that districts using the No Child funds to buy products like Ignite's would have to meet "very strict" student eligibility requirements and ensure that the Ignite services were supplemental to existing programs.

Known as COW, for Curriculum on Wheels (the portable learning centers resemble cows on wheels), Ignite's product line is geared toward middle school social studies, history and science. The company says it has developed a social studies program that meets curriculum requirements in seven states. Its science program meets requirements in six states.

Most of Ignite's business has been obtained through sole-source contracts without competitive bidding. Neil Bush has been directly involved in marketing the product.

In addition to federal or state funds, foundations and corporations have helped buy Ignite products. The Washington Times Foundation, backed by the Rev. Sun Myung Moon, head of the South Korea-based Unification Church, has peppered classrooms throughout Virginia with Ignite's COWs under a $1-million grant.

Oil companies and Middle East interests with long political ties to the Bush family have made similar bequests. Aramco Services Co., an arm of the Saudi-owned oil company, has donated COWs to schools, as have Apache Corp., BP and Shell Oil Co.

Neil Bush said he is a businessman who does not attempt to exert political influence, and he called The Times' inquiries about his venture -- made just before the election -- "entirely political."

Big supporters

Bush's parents joined Neil as Ignite investors in 1999, according to U.S. Securities and Exchange Commission documents. By 2003, the records show, Neil Bush had raised about $23 million from more than a dozen outside investors, including Mohammed Al Saddah, the head of a Kuwaiti company, and Winston Wong, the head of a Chinese computer firm.

Most recently he signed up Russian fugitive business tycoon Boris A. Berezovsky and Berezovsky's partner Badri Patarkatsishvili.

Barbara Bush has enthusiastically supported Ignite. In January 2004, she and Neil Bush were guests of honor at a $1,000-atable fundraiser in Oklahoma City organized by a foundation supporting the Western Heights School District. Proceeds were earmarked for the purchase of Ignite products.

Organizer Mary Blankenship Pointer said she planned the event because district students were "utilizing Ignite courseware and experiencing great results. Our students were thriving."

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