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The charity won a £1m Department for Education contract this year to help set up provision in 184 schools.
This is not the first time that A4e has prematurely terminated a prison education contract; the firm ended a similar contract providing education to eight prisons in Kent early in 2008, citing huge losses.
Education Department officials said they had included a provision in the special education contract that would prevent employees involved in the Medicaid case from working on the city contract.
The start of A4e's prison education contract was complicated by a delay of several months as the company underwent an extra level of auditing, amid fraud allegations in its welfare-to-work contracts.
The story so far Ensign withdrew its bid for the education contract in Waltham Forest after it was reported that it had offered payments of £5,000 if the bid was successful to two consultants working for PPI, a private firm recently acquired by Tribal and hired to provide manage ment support in Waltham Forest.
They are more likely than young children to be recruited into fighting forces; be sexually abused and exploited; be forced to generate a livelihood and engage in exploitative labour; head households; miss out on education; contract sexually transmitted infections such as HIV; and lack reproductive health care.
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Mr. Luna replied that political contributors had never had an inside track in winning education contracts.
Mr. Liu, a potential mayoral candidate, has tried to be aggressive about investigating city education contracts.
Vincent King, partner and specialist higher education contracts lawyer at law firm Weightmans LLP.
Mr. Bloomberg and Schools Chancellor Joel I. Klein have been criticized by the City Council and the comptroller, William C. Thompson Jr., over education contracts awarded without competitive bidding.
He promises to use the audit powers — including new ones overseeing the city's education contracts — to increase productivity and efficiency.
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CEO of Professional Science Editing for Scientists @ prosciediting.com