Woman says MSCS paid another company $34k for work she never did
Mar 13, 2025
SHELBY COUNTY, Tenn. -- A local security company says Memphis Shelby County Schools cut a check for $34,000 with your taxpayer money for their services. Except, the owner said she doesn't know where that money went since she never provided any services to the district.
"When you cannot trust your
local government, who can you trust?" Kim Watkins said.
Watkins is the proud owner of Certified Defenders of America. It's a female, minority owned, small security business in Memphis that provides services for private companies, and the city, county, and federal government.
To help land those local government contracts, Watkins goes through a certification process with the City of Memphis to prove she's female and minority owned as well as a small business.
The certification means she can participate in equal business opportunity and small business enterprise programs. It also allows her company to be listed in the Memphis Shelby County Schools' certified vendor database.
"That means that when they put out a bid solicitation, you are able to bid on it," Watkins explained. "I have not signed a contract with [MSCS] though."
That's why this next part caught her eye.
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When she logged on to the city's portal in the fall of 2023 to recertify her business, she took a screen shot of what she saw.
Her company, Certified Defenders of America, had been added to one of the largest contracts with Memphis Shelby County Schools.
Back in 2021, the district signed over its bus services to First Student for $129 million.
It seemed Watkins' company had been listed as a subcontractor, which means First Student had reported hiring them to help with some part of their plan.
"When I looked at it, I said, 'We have not signed a contract or a subcontract with Memphis Shelby County Schools or First Student,'" she said.
Then she noticed the city's portal noted MSCS cut a check to First Student for her services. The total was more than $34,000.
She wondered how another company could get a check for a hire they never made?
"We've never spoken with First Student. We were never utilized by First Student. First Student never called us," she said. "How can we be added as a subcontractor without being contacted first? Without signing a contract with First Student?"
Watkins asked just that to the compliance officer listed on the contract. Eventually, she had a conference call with the district and the bus company.
She played the conversation she recorded. For legal reasons, we can't play her audio, but we can tell you what was said.
A First Student representative apologized to Watkins for the "error" and blamed "miscommunication."
MSCS added, "What [First Student is] doing is adding additional vendors" and further explained First Student is "getting credit for utilizing minority vendors as additional vendors for the contract."
"What she said was, well, Ms. Watkins, they get credit for adding minority vendors," Watkins told WREG Investigators as the audio came to an end.
In a statement, First Student said in part, it's "committed to supporting Minority and Women-Owned Business Enterprises (MWBEs) and has consistently made good faith efforts to engage with MWBE providers." It went on to state, it "explored a potential subcontracting opportunity with Certified Defenders of America but ultimately decided not to move forward. The District was notified accordingly, and no compliance credit was received in connection with this matter."
First Student didn't answer our questions about that $34,000 payment Watkins saw listed. It's unclear if they received it, and if it was returned to MSCS if they did.
We sent several emails to MSCS, but they all went unanswered. We've submitted open records requests to hopefully find out more.
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"The lack of concern is disturbing. That's what's disturbing. The lack of concern," Watkins said.
She said she asked MSCS about the money multiple times and has spent months following up. She even contacted board members and other local, state, and federal politicians.
"I'm just kind of confused as far as why no one has bothered to reach back out to me," she said.
Watkins says she's a product of MSCS and felt compelled to reach out to us after watching everything unfold within MSCS these past few months.
"Corruption. Misrepresentation. Fraud. That's how I feel," she said. "The trust is gone."
Watkins says she finally heard back from MSCS last week. A day after we emailed them for a comment. They've asked for a meeting.
Watkins did tell us right now, she doesn't feel comfortable meeting with the district or entering any contracts.
She said she has contacted the Tennessee Comptroller's Office and reported the incident. She's since handed over all of her evidence to state investigators and also reported what happened to the feds. ...read more read less