The Detroit School District has spent, what some say are suspicious, millions on past leases and land deals. A district spokesman stated that the district spends $2.2 million annually on real estate leases alone.

An investigation has ensued to review every real estate transaction for the past several years in order to determine whether any misuse or abuse of funds has occurred.

School board member Marie Thornton, among others, raised concerns about the amount the district spends on leases. She also noted that offices used by administrators are extravagant. Emergency Financial Manager Robert Bobb took over one such office at the Fisher building. Her concerns were that the administration left offices that were free-of-charge to relocate to offices that, along with several other buildings, cost the district $1.9 million a year.

Emergency Manager Robert Bobb plans on conducting public hearings and calling witnesses to uncover the details regarding past real estate transactions.

The district’s new inspector general, a former FBI agent, will participate in the investigation, along with Bobb, which will include revisiting land deals and addressing controversial leases and real estate acquisitions, including the Midtown Fisher Building, headquarters for the district.

This is a big deal, folks. The district is facing a $306 million deficit and plans on closing 29 schools this fall. Yet, administrators sit comfortably in multi-million dollar headquarters when they could be housed in free facilities.

What’s interesting, though, is that one of the participants, the district’s own Emergency Financial Officer Bobb, is conducting the investigation. Though issues like this would typically fall under his responsibility, it makes some wonder if there may be some conflict of interest in this case. The district’s new inspector general, the previous FBI agent, however, should be able to provide a good balance to the inquiry.

Nonetheless, it will be interesting to see how the chips fall on this one.