The indictment of four Qwest Communications officials in connection with a project to wire all of Arizona's classrooms to the internet will not affect the project's completion, state officials say—though they admit they were stunned to learn of this latest development.

A 12-count federal indictment handed down Feb. 25 accuses four former Qwest executives of devising a scheme to create more than $33 million in false revenue by wrongly reporting a purchase order from Arizona's School Facilities Board and then covering it up.

The board, which oversees Arizona's program...

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