GROUPS POCKETING REBATES FROM UNIVERSITY VENDORS …
The inspector general’s office in South Carolina is pretty much a joke. It doesn’t rock the boat, and even if it wanted to it lacks the authority to do much in the way of rocking …
It’s also part of S.C. Gov. Nikki Haley’s administration, meaning it lacks any real credibility to tell other agencies, “hey, you’re being corrupt.”
Anyway, for these reasons inspector general Patrick J. Maley’s recent report on S.C. State University barely registered as a blip on the Palmetto political radar.
The report – which reviewed “suspicious indicators” at various non-profit foundations associated with the historically black, chronically mismanaged school – is worth reading, though. For starters, it revealed that millions of tax dollars were being pocketed by these organizations in the form of rebates from university vendors.
That’s money that could have gone toward addressing the school’s multi-million dollar debt.
“This practice of diverting state funds, generally termed rebates, to foundations is inappropriate and needs to cease,” Maley wrote.
We concur …
So … where did all the money go?
“The foundations used the funds for salary supplements, travel, consultants, vendors, flowers, scholarships, awards, entertainment, meetings, country club memberships, and a variety of miscellaneous expenses,” Maley wrote.
Wait … country club memberships? That sounds familiar, doesn’t it?
All told $2.29 million of taxpayer cash was siphoned between 2010-13 – and that’s just from S.C. State’s top five vendors. Who knows how much money corrupt school officials have been scamming?
Because there’s no doubt they’ve been scamming …
S.C. State has had financial problems for years, yet state lawmakers continue to bail it out using taxpayer funds (while subsidizing its boondoggles … and funding its questionable bureaucratic hires).
When will it stop?
Only when lawmakers recognize higher education is not a core function of government – and set South Carolina’s thirty-three government-subsidized institutions of “higher learning” free to pursue their destinies in the private sector.
26 comments
Didn’t someone just get a $50,000 bonus from one of these foundations?
Elezy, the university president was awarded the bonus from “foundation monies” after the board voted his performance to be “worthy”. Only one board member voted against the bonus, begging the question, “what the hell are they smoking”? http://www.thestate.com/2014/07/07/3551672/south-carolina-state-president.html?sp=/99/205/&ihp=1
Elezy also received $132,000 salary from the same Advancement Foundation. It was a raise From $110,000.
This report is beyond shameful. Nothing seems unpalatable to the Inspector General, Governor Haley and the B and C Board.
If this is not against the law, what is?
Don’t blame the governor. The General Assembly passes the laws. It probably is not illegal for the state to pay a contractor or vendor and for a foundation to receive the rebate or for a state employee to be paid by a foundation.
It may not be illegal, but it is against the spirit, if not the letter, of many state regs concerning procuring services “at best value”, “all terms of the agreement are in this documents”, etc.
I notice Will Folks was first to put this out. State News did not do so till after Fits. AP seems not to care about this at all.
The incidence of perceived malfeasance or questionable judgement has nothing to do with the validity of the concept of “Gubmint” funded Higher Education. Even if the entire Institution were corrupt it still doesn’t make your case.
You’re like a whore, FITS: anything for a dollar or any rhetorical leap to score a point, even if disjointed.
Wow, “Even if the entire Institution were corrupt it still doesn’t make your case.”…really?
Did you even stop once when typing that and think, “Well, maybe I’m going a bit too far….nahhhhh.”?
Higher education is a core function of government. They’re doing it badly though.
Ya know…..there is a huge new water tower just SOUTH of Orangeburg…! (Bowman) We wonder how much siphoned loot is invested in “property” that is pending a manufacturing seed..?
New pontoon boats should be easy to photo and post to this website…………
You want an oversight agency that truly doesn’t register on anyone’s radar, is now redundant, largely ignored, and is itself a waste of taxpayer dollars? I give you: the SC Legislative Audit Council; where audits take almost two years complete and have almost no impact. At least the IG doesn’t take two years to report its findings.
2 and half million stolen or 3 years? i’ll take that any day. that wouldn’t fund a semester of waste at USC – albeit waste of the more sophisticated, white variety.
i work at USC and I agree 100%.
But that does not lessen the crimes committed at State.
College Student = Cash Cow
http://oig.sc.gov/Documents/Review_of_Suspicious_Indicators_at_South_Carolina_State_University_Foundations.pdf
Snippets from OIG Report
These types of rebates undermine transparency, accountability, and managing contract performance in the following areas:
Creates hidden costs to consumers, primarily students. SCSU students annually pay an
extra $343 for meals tosupport the food service vendor’s lump sum monetary contributions back to SCSU and foundations.
Creates the potential for conflicts of interests undermining rigorous contract monitoring by a state agency. As one experienced Board member commented on these rebate contract requirements, ‘Why would I be forceful with a vendor if I’m getting something on the backend? I am going to do a whole lot of tolerating.’ As an example, one vendor contract included a $200,000 unrestricted “partnership gift” on the first day of the contract.
The SIG reviewed the five major vendors providing rebates to SCSU. A review of each
vendor’s current contract along with the specific language requiring a form of rebate back to SCSU were as follows:
UGL-UNICCO (managed on-site by subsidiary DTZ): This vendor managed the physical plant of the University. The vendor agreed to pay approximately $200,000 per year ($1 million over a five year contract) to the university for special projects of the university’s choice.
Sodexo: This vendor provided the food services and managed campus dining halls. Sodexo had a commission based rebate calculated on the volume of sales and type of services provided. The vendor also agreed to pay the following without any performance requirements or contingencies: $200,000 unrestricted partnership gift on the first day of the contract; $800,000 in facilities enhancement funds for on-going facilities improvements; $175,000 in-kind catering; five complementary meal entries on each student meal plan; $710,000 in construction capital investment to enhance certain food locations on campus;
$5 million in investment as directed by the RFP for supporting the new campus wellness center; and $350,000 annually in a fixed contribution.
Pearce & Pearce: This vendor provided health plans for students at the university.
Pearce & Pearce had a commission based rebate, which involved SCSU collecting premiums and remitting them to the vendor and a capitation fee to the university for students seen at the on-campus wellness center.
Follett: This vendor operated the campus bookstore. Follett had a commission rebate
contract requirement based on the volume of sales. The vendor also agreed to pay the following without any performance requirements or contingencies: $100,000 to the completion of a new retail-ready Spirit Shop in or near the stadium; $66,000 upgrades to retail space; $10,000 annually in general scholarships; and $2,000 annually in textbook scholarships.
Coca-Cola: Coca-Cola provided beverage and snack vending, as well as exclusive pouring
rights in dining halls and sporting events. Coca-Cola paid a commission based on sales, as well as agreed to pay six academic scholarships each year, which were annually valued at $43,668.
Hhmmm…are ‘rebates’ the new term for ‘kickbacks’?
Do other colleges in SC do this?
The IG never met a scam he could not appreciate. He is a waste of money.
What does a government employee or state institution have to do to break a state law, regulation or ethics code?
If this does not do it, what the hell does?
Evidently it is open season on students and the taxpayer. It is beyond belief that these people are getting bonuses and not jail time.
They didn’t break the law, it’s merely “inappropriate and needs to cease”.
LMAO!
Look, if someone wants something, like a Chrysler 300, for simply steering some work this way or that, who are we to complain? I mean come on, that stuff happens in the private sector ALL THE TIME!
We know these government mules don’t make anything, that’s why they at least get good benefits, like a nice healthcare package & retirement, so why deprive them a Chrysler 300 or Porsche Cayenne?
Stop being greedy.
I don’t know much about government but I know business. Those involved would be fired, and probably indicted. It just shows our tax dollars are wasted by Republican and Democrat administrations alike.
Reparations. The ones siphoning deserve that stolen money because one time long long ago a family member they never met worked on a plantation.
Want to find more waste??
Look at the Governor’s High Schools.
A complete waste of money, run by idiots, for a few privileged people’s benefit.
They don’t provide not one thing that couldn’t be done just as well, for more kids, at a hell of a lot less money.
Everyone should be shut down.
Its basically similar to the way House Speaker Bobby Harrell operates. What SC State has been doing is, they get vendors to over price services, etc .. .SC pays the over inflated bill. Then the vendors do their thing. Its all planned, calculated, and thought out beforehand. But these idiots at SC are not sneaky enough to cover their tracks so well. Kind of like Harrell … Losing records? Keeping clearly public records from interested investigators? — until it can be figured out how to cover it all up and mislead. With time, that can be done when there is so much of it. But still, they get caught. In any event, this is how white collar criminals operate. The figure ways to cover up their crimes. But 99% of the time, they fail. All of this can be forced to a head, if the people push it enough. Politicians and law enforcement sure won’t. YOU have to push it. And the more doing the pushing, the more likely punishment is given to the white collar criminals.
This is their reparations.
So? The Gamecock Club gets Columbia hospitality tax money.