Fumo rips PHEAA audit as political

HARRISBURG - State Sen. Vincent J. Fumo, who serves on the board of Pennsylvania's student-loan agency, yesterday criticized an ongoing state audit of the agency's spending practices, alleging that it was politically motivated.

Fumo (D., Phila.) said the Pennsylvania Higher Education Assistance Agency's spending on business travel, entertainment and promotions had helped boost its revenues.

State Auditor General Jack Wagner announced in April that his office would audit PHEAA, citing news reports of lavish spending. The audit is expected to be completed by the end of June.

"The going out . . . and entertaining and marketing brought this agency a ton of money," Fumo said during the board's monthly meeting. "I think the auditor general should be ashamed for trying to run a political campaign on the backs of the students of this commonwealth."

Wagner is seeking reelection this year and is considered a potential candidate for governor in 2010. He issued a statement yesterday saying that the audit was not driven by politics.

"This is a professional audit that we undertook to make sure that PHEAA was fulfilling its mission of making college more affordable to Pennsylvania students," Wagner said through spokesman Steve Halvonik.

Fumo is awaiting trial on wide-ranging corruption charges alleging that he misused the staff and resources of the state Senate, the Independence Seaport Museum, and a nonprofit, Citizens' Alliance for Better Neighborhoods. Fumo denies the charges.