Monday, August 29, 2011

Peter Gorman's Murdoch-owned company takes big hit from New York state

Posted By on Mon, Aug 29, 2011 at 11:03 AM

You have to wonder whether former CMS Superintendent Peter Gorman is having second thoughts about taking a job in a Rupert Murdoch company. The New York Daily News reports that the state of New York has canceled the $27 million contract between the state’s Education Department and Murdoch's Wireless Generation — a company that comprises the bulk of Murdoch-owned News Corporation's Education Division, of which Gorman is a senior vice-president. New York State Controller Thomas DiNapoli told the state Education Dept. that the contract was rejected "in light of the significant ongoing investigations and continuing revelations with respect to News Corp.” and an "incomplete record" about News Corp.'s qualifications.

Gorman’s job is "building the division's business inside public-school districts," according to News Corp. “The division’s business” so far consists entirely of one company, Wireless Generation. With this new slap in the face from one of the largest state education departments in the nation, Wireless Generation, and indeed, New Corp.’s recently launched Education Division itself, could be at risk.

Wireless Generation was set to get $27 million of New York’s $700 million in federal "Race to the Top" funds to develop software for the purpose of gathering the academic and personal information of every public school student in New York state. In view of News Corp.’s outrageous phone-hacking and police bribery scandal in Britain, it’s no surprise that parents’ and teachers’ groups raised cain about the arrangement. In addition, the U.S. Justice Dept. is reviewing claims that Murdoch’s international media octopus hacked the phones of some 9/11 victims. As the Daily News summed it up, “The controversy proved too much for the state to stomach.” It remains to be seen whether his parent company’s antics will have the same effect on Gorman. Attempts this morning to reach Gorman for comment were unsuccessful.

News Corp. Education Division Senior VP Peter What did I get myself into? Gorman
  • News Corp. Education Division Senior VP Peter "What did I get myself into?" Gorman

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