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Sandusky had been retired for 3 years when the 2002 stuff took place and when Joe found out about it. Pretty hard to fire someone, or otherwise discipline them, when they no longer work for you.
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Yet he continued to enjoy access to campus facilities. Surely someone should have seen to it that he be barred from the campus. The inaction by Paterno and others allowed the abuse to continue for several years after the initial discovery.