School House Shock

"Congressional investigators have been drawn to The Atlanta Journal-Constitution's reports of repeated instances in which Atlanta school officials could not account for what they had purchased. U.S. Sen. John McCain (R-Ariz.), chairman of the Senate Commerce Committee, blamed himself and others for providing too few auditors and praised this newspaper's reports for providing 'some of the most revealing examinations' of E-rate abuse. Documented in those reports were instances where the system paid too much for goods and services while warehousing millions of dollars of unused equipment. Similar abuses have been reported elsewhere, prompting both Congress and the Federal Communications Commission to re-examine the E-rate program, which distributes up to $2.25 billion per year. ... It's hard to justify collecting a fee that generates up to $2.25 billion a year when the primary mission has been accomplished. The infrastructure job at schools is essentially done, except for upgrades, operations and maintenance. The tax is hidden so that consumers are unable to identify the school portion of up to a few dollars per month. The second reform needed is tighter management of E-rate programs so that school systems such as Atlanta's don't find it so easy to spend recklessly. It's clear that most local officials don't regard federal money as dollars for which they are to be held strictly accountable. Deeper, wider and quicker federal audits are needed."

The paper also provided an opposing view, publishing excerpts from a report on the program last year, which lauded E-Rate.
• The Atlanta Journal-Constitution: A Close Eye on E-Rates (Registration required)
• The Atlanta Journal-Constitution: IBM, Other Vendors Have Secret E-Rate Deals (Registration required; article is from Sept. 23)

Data Links

Uncle Sam continues its push to find ways to give law enforcement officers and government agencies quicker and more accurate data to bolster homeland security and terrorist-fighting efforts. Wired News reports today that the Senate could OK legislation as early as tonight "that would let government counter-terrorist investigators instantly query a massive system of interconnected commercial and government databases that hold billions of records on Americans." However, the move -- part of the National Intelligence Reform Act of 2004 -- is already being criticized by consumer advocates and others who worry about privacy concerns, a common hurdle for data-sharing initiatives.

Wired said the data network is based on a report by the Markle Foundation "which envisioned a system that would allow FBI and CIA agents, as well as police officers and some companies, to quickly search intelligence, criminal and commercial databases. The proposal is so radical, the bill allocates $50 million just to fund the system's specifications and privacy policies," Wired reported.
• Wired News: Senate Wants Database Dragnet

Google Pages

Is search engine king Google giving Amazon.com a run for its money? The company is rolling out a service that might cause Amazon head Jeff Bezos to flinch today. Google "quietly launched a new search technology to help publishers sell books online, a fast-growing market dominated by Internet retailer Amazon.com. Google founders Larry Page and Sergey Brin will host a press conference on Thursday to demonstrate the technology at the Frankfurt Book Fair, an important showcase if the Internet search engine is to recruit the heavyweights of the book publishing industry," Reuters reported.
• Reuters: Google Launches Amazon-Style Book Search Business

In other Google news, the company's sky-high share price is finally getting some justification. The company's shares yesterday climbed past $135 to close at $138.37 a pop, surpassing the top range the company placed on the stock for its IPO, the New York Times noted.
• The New York Times: It Took a Few Weeks, but Google Has Topped Its Initial Price (Registration required)

In The Eye of Oracle

The prospect of Oracle getting to take over its intended target, rival PeopleSoft, may be closer at hand. Even though PeopleSoft has so far rebuffed Oracle's offers, a company insider indicated PeopleSoft is open to a deal -- but the backpedaling has already begun. "A PeopleSoft director testified Tuesday that he would be open to merger discussions ... but only if the price was right and the deal could close quickly. The remarks by Steven Goldby, an outside board member of PeopleSoft, during a Delaware court session, fanned speculation on Wall Street that PeopleSoft might stop fighting Oracle's takeover attempt. Some observers also said Oracle could now raise its current $21-a-share hostile bid. But officials of Pleasanton-based PeopleSoft quickly noted that Goldby was simply saying what any good board member would say in light of his fiduciary duties to shareholders," the San Jose Mercury News reported.

USA Today noted: "Equity analysts say Goldby's remarks also reveal that PeopleSoft is on a fast track to be acquired. In a note to clients Tuesday, Prudential Equity Group analyst Brent Thill said PeopleSoft was 'more willing to engage in a dialogue with Oracle to discuss its options.'" The Los Angeles Times and San Francisco Chronicle also reported the development.
• The San Jose Mercury News: Director Open to Bid to Acquire PeopleSoft (Registration required)
• USA Today: PeopleSoft Open to Deal, Official Says
• The Los Angeles Times: PeopleSoft Willing to Deal With Oracle (Registration required)
• The San Francisco Chronicle: PeopleSoft May Be Open to Oracle Bid

Filter is designed for hard-core techies, news junkies and technology professionals alike. Have suggestions, cool links or interesting tales to share? Send your tips and feedback to cindyDOTwebbATwashingtonpost.com.