Transactions between Sussex Tech and Laurel businessman back in the news

Sussex Tech photo

Sussex Tech staff and teachers are seeking the resignations of board members over a long-simmering issue regarding millions of dollars in dealings with a Laurel businessman.

Last year, the  Delaware State Auditor’s office has red-flagged millions of dollars of transactions between  Michael Horsey and the vo-tech high school.

The audit made a few headlines last year but seemed to result in no action from the board of the vo-tech high school. (See 2017 Delaware Business Now  story below)

Auditor highlights property flip and contract awards by Sussex Tech


The apparent inertia over the issue appeared to change earlier this month when a group of teachers demanded the resignation of board members, Delaware 105.9 radio station and other outlets reported.

 The audit reported that in addition to a land flip that proved profitable to Horsey,   “Sussex Tech awarded CSS additional CM contracts for other construction projects by way of “piggybacking” from the existing High School Bus Entrance  CM contract. AOA expanded the scope of this inspection to include review of these contracts and other payments to CSS. AOA reviewed $3,873,431 in expenditures paid to CSS for the period July 1, 2011 through November 4, 2016.”

The auditor ’s review of payments to CSS  cited a  lack of support for invoices, numerous State of Delaware Budget and Accounting Policy Manual violations, avoidance of fair procurement processes, and conflicts of interest.

The audit’rs office reported 105 payment vouchers  totaling  $929,682 that appeared to be split in order to stay below the thresholds requiring purchase orders, three letter bids, and competitive bidding.