Philadelphia school official steps down amid pay allegations

The Philadelphia School District's top human resources administrator stepped down Wednesday amid allegations of nepotism and that she awarded pay raises to certain individuals while the district was laying off employees and contemplating further academic cuts.

Estelle G. Matthews, the district's chief talent development officer, was escorted out of school administration headquarters at 6 p.m. Wednesday, according to sources inside and outside the district who had knowledge of her departure.

The abrupt exit of Matthews - a close friend of former Superintendent Arlene C. Ackerman's - happened after The Inquirer asked questions about individual raises of as much as $25,000. It also follows a preliminary report the district's inspector general recently gave the School Reform Commission from an internal investigation that found several questionable pay increases totaling more than $80,000 to Matthews' friends and their relatives. There were also allegations that Matthews' son was hired and held jobs although he lacked qualifications.

The controversial pay raises - ranging from $4,500 to $25,000 - were initiated by Matthews and granted in July and September, even though the district was shedding 3,800 jobs to help close a $629 million funding gap.

The Inquirer had been expecting to receive Friday the final pieces of information from the district about seven specific raises in response to a request filed Oct. 27 under the state's Right-to-Know Law.

The circumstances surrounding Matthews' departure are not yet clear. Her last day was Wednesday, according to a district employee who answered her phone.

Matthews could not be reached for comment.

District spokesman Fernando Gallard said Thursday he could not confirm Matthews' departure.

"We do not have an official announcement," Gallard said. "When we do . . . we will be sharing it."

But earlier, he had confirmed that a policy the SRC adopted Nov. 23 requiring all promotions and salary changes to be approved by a new committee was in response to district officials' concerns about recent raises.

Gallard said that in addition to the inspector general's probe, the administration was conducting an inquiry led by the law department. That review is examining seven pay increases and related issues, he said.

Matthews joined the district in December 2008, after serving as senior vice president of human resources at what was then Wachovia Bank from 2005 to 2008. Her district salary was $185,400.