
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, May 14, 1994                   TAG: 9405160157
SECTION: VIRGINIA                    PAGE: C2   EDITION: METRO 
SOURCE: JOEL TURNER STAFF WRITER
DATELINE:                                 LENGTH: Short

SCHOOLS COMPENSATED FOR MILK CONTRACT SCHEME

Ten school systems in Western Virginia will receive $747,500 in the settlement of a case in which two dairies were accused of conspiring to rig bids for school milk contracts.

Roanoke will receive the largest amount, $177,232, followed by Roanoke County, $139,483, and Franklin County, $110,854.

The case involved milk sold to the school divisions by Meadow Dairies and Valley Rich Dairy.

Attorney General Jim Gilmore said Friday that he has mailed checks to the school divisions.

He said the bid rigging deprived the school divisions of the benefits of open and free competition. "In the end, taxpayers are the victims through higher prices for the goods and services," Gilmore said.

In a civil suit filed by the attorney general's office last year, the dairies were accused of violating federal and state law by:

Divvying up the school districts and agreeing which dairies would submit the lowest bid.

Deciding among the dairies what the lowest bid would be.

Submitting noncompetitive bids in districts assigned other companies to create the illusion of competition.

Other school divisions and the amount they will receive are: Alleghany County, $54,941; Botetourt County, $58,678; Covington, $26,910; Giles County, $48,512; Patrick County, $47,092; Radford, $20,631; and Salem, $63,163.

by CNB