EXCLUSIVE: Records suggest district was invoiced millions over contract cap; Minneapolis schools won’t explain

What started as a tip about a transportation company operating out of a Roseville parking lot led Alpha News to uncover potentially $3 million in overbilling inside Minneapolis Public Schools—and deeper concerns about oversight in a state already drowning in fraud.

Frontier Transportation Services, LLC is operated by two men named Falmata Bedasso and Abdurahman Kadir, according to secretary of state records. The company, which transports “Homeless and Highly Mobile” (HHM) students, was authorized to receive, at most, $3.6 million from Minneapolis Public Schools (MPS) for services through 2027, contract and school board records reviewed by Alpha News show.

But by early 2025, the district had already been billed well above that amount, according to the most recent contracts and invoices obtained by Alpha News through a data practices request.

In total, all of the invoices provided by the district in response to the request add up to more than $7 million.

The timing is hard to ignore: a new state law took effect in 2023 guaranteeing school districts 100% reimbursement for transportation costs tied to HHM students, according to Minneapolis Schools Voices.

Oversight of vehicles used to transport students

Unlike traditional school buses, Frontier relies on Type III minivans to transport students, which are limited to a maximum of 10 passengers, including the driver.

MPS admitted through a public data request that it does not have any copies of vehicle inventories provided by Frontier Transportation Services—despite the contract requiring “a vehicle inventory of all vehicles planned to be used to provide service.”

Repeated attempts to seek answers met with silence

Since January 2025, Alpha News has made repeated attempts to obtain clarification on Frontier’s invoices—starting with MPS Senior Financial Officer Ibrahima Diop and later including other district employees, and even Superintendent Dr. Lisa Sayles-Adams.

Each inquiry was either redirected or left unanswered.

The outlet also made multiple attempts to contact Frontier Transportation Services owner Falmata Bedasso—a self-described businessman and immigrant from East Africa—but received no reply.

Reporters also visited Frontier’s listed office building in Roseville, where the office appeared mostly vacant. An individual at the location said Bedasso was not there.

Records show that Bedasso’s company has been a contractor for Minneapolis Public Schools since 2022.

The district initially capped Frontier’s contract at $1.5 million, later raising it to $3 million in 2023. A 2024 document suggests the total may have reached $3.6 million—but no public records show it was ever authorized to go beyond that.

Spike in HHM transportation drives cost increase

The lion’s share of Frontier’s billing appears tied to the transportation of HHM students—a designation in Minnesota for students who lack a “fixed, regular, and adequate nighttime residence.” This includes students staying with non-custodial relatives or friends due to housing instability.

According to Minneapolis Schools Voices, about 900 students were receiving transportation by cab or van in December 2022. By the next school year, that number had climbed to nearly 1,300—a 40% increase in just one year.

That rise translated into higher costs for the district—and more money for its transportation vendors.

In 2022-2023, the district spent $9.7 million on transportation for HHM students. That number was projected to reach $17 million in the 2024-2025 school year, the article reported.

That represents a nearly 75% jump in the cost of transporting HHM students between 2022 and 2024.

Fleet size and billing 

State Patrol inspection records for 2024 show that 111 vans from Frontier’s reported fleet passed inspection.

During a visit to the office building listed as the company’s address, Alpha News observed about a dozen minivans bearing Frontier Transportation signage in the parking lot.

Furthermore, a closer look into Frontier’s invoices raised additional questions. For instance, in spring 2024, the district was billed $284,000 for a listed billing period of just three days.

Mercedes and a trail of unpaid fines

Beyond the company’s finances, public records offer additional insight into Bedasso’s personal financial background.

A search of court records shows 20 parking violations under Bedasso’s name—13 of which remain unpaid—totaling hundreds of dollars. His most recent citation says he was pulled over in a Mercedes-Benz.

In a “success story” article published by the Minnesota Inclusive Growth Fund, Bedasso highlights his transportation company’s mission to serve a culturally diverse subset of students.

“There is often a disconnect between students, schools, and drivers when it comes to clear communication,” reads a quote attributed to Bedasso. “For us — and especially for students of African descent who may have language or cultural barriers to overcome — it is about bridging this gap.”

While Bedasso has not been charged with or accused of any crime or wrongdoing, other transportation companies in Minnesota have come under investigation in the past.

Alpha News’ previous reporting on the PITSTOP-66 investigation revealed how some operators billed for rides that never happened—all while collecting millions in taxpayer funds.

The state’s multi-agency probe has resulted in charges against at least 19 individuals so far.

Over the course of several months, Alpha News made repeated attempts to obtain basic answers from both Minneapolis Public Schools and Frontier Transportation—but received none.

If there’s a simple explanation, no one seems willing to give it.

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