President Benjamin Ladner would resign if allegations he misspent more than $500,000 of AU's money were true, but said "emphatically that they are not," in an interview yesterday.
"If I had done all the things that they claimed, I should resign. But I have not, and that's the truth," Ladner said. "I would hope that in a community where truth is important ... that people would reserve judgment until the facts come forward."
The Student Government released a statement Friday calling for Ladner to step down or be removed by the board if investigators find he spent the money inappropriately.
The board began investigating Ladner last spring when some members received an anonymous letter claiming he spent university money on presents for his children, European vacations, a personal French chef and other expenses. The chef was laid off a few weeks ago.
Ladner said that while the allegations against him have been greatly exaggerated, he admits errors in his judgment regarding spending and keeping track of his expenditures. He has written the university a check for more than $21,000 to cover what Ladner now considers personal expenses.
"One of my mistakes was I didn't pay attention because there are so many events-and we had about 60 events here last year-I don't pay attention per event, even if it's a personal event."
He stressed that his job involves offering donors and dignitaries top treatment, resulting in millions of dollars of fundraising and AU's raised reputation internationally.
"The kind of people who move around the world and give large gifts ...there is a level of quality and expectation and recognition and so forth that these people are actually used to," he said.
Because of his quietrole in the university's daily activities, Ladner said he wants people to understand his role at the school.
"I would want people to understand the context of my responsibilities, my life, what it means to live in a public house, and Nancy's responsibilities as a volunteer," he said.
Nancy Ladner faced scrutiny for having a social secretary, Sally Ekfelt, who was moved to the president's office under Ladner's chief of staff a few weeks ago.
SG President Kyle Taylor said he understands a university president's role in fundraising, but he must spend the school's money cautiously.
"I absolutely believe there is a certain amount of wining and dining that it takes," Taylor said. "You need to take care of these people who are giving millions and millions of dollars. But that said, there's a limit. There's a point where it goes beyond raising money."
There is a fine line between what events can be charged to the university and which cannot, Ladner said, and he takes responsibility for not always making the right judgment call.
"All presidents of universities live in a very delicate situation that is almost unique" in which they're required to live for some time in a school-owned house, and also use it for business events, he said.
"I don't think anybody would complain that I had a birthday dinner but they ... obviously have complained that my son's once-in-a-lifetime engagement party was very expensive," Ladner said.
A fractured board
The $500,000 in expenditures questioned by investigators "are and were consistent with his contract as interpreted over the past decade," according to a source who spoke to The Eagle on condition of anonymity. Most members of the 25-member board of trustees found out about the board's probe the same time the public did, the source said.
Creating additional friction within the board is the question of the legitimacy of Ladner's current contract, because it was created in 1997 unbeknownst to many on the board, according to trustee Paul M. Wolff.
"It simply does not exist," Wolff wrote in a letter to board members. "This contract was never presented to the board for ratification. It remained secret from the Board until February of this year."
Ladner said the document was legitimately created by the five-member compensation committee and signed by himself and then-board chair William I. Jacobs. Jacobs described the contract to the full board and said trustees could see it if they wanted to, according to Ladner. But he could not know for sure what Jacobs told the board because presidents are not present for discussions of their compensation, Ladner said.
At a Sept. 12 meeting, the board's executive committee sought to direct all final decisions regarding the probe to only their committee. Members of the full board disagreed, saying all trustees should have a voice in those decisions.
The investigation could cost more than $1 million, more than twice the amount of the allegedly misused funds.
A bad impression
The board's sparse communications about the probe have been "a disaster," and the body could have given more explanation for its actions, Ladner said.
"I feel that it's hugely irresponsible for the board chair not to sit with students, not to sit with faculty, and give them at least an update," he said. "You wouldn't have had to reveal confidential information."
Board chair Leslie Bains asked Ladner not to talk with students or faculty since his suspension a month ago, and only a couple of statements have been released to the campus community about the probe.
One memo made clarifications to the Washington Post article that first reported the investigation in late July, and another announced Ladner was put on leave and Provost Neil Kerwin would act as president.
Ladner and the board had agreed not to speak to the press, Ladner said, but since board members have broken the agreement he's spoken to national media and contacted The Eagle.
"It must be difficult for students, especially freshman or those who haven't met me, to read the Washington Post or the New York Times or other public media and say, 'Wow, that looks pretty bad.' I'm sure it looks pretty bad, but it's also false."
Chris Smith, a sophomore in the College of Arts and Sciences, said the national press coverage is "unnerving."
"AU seems to be a great investment school so far," he said. "My degree will be worth much more than it was even 4 years ago. I hope this scandal doesn't affect us in this respect."
Increasing transparency
Ladner said he was "kept in the dark" about the board's investigation, and so were most members of the AU community.
The SG is working with other student leaders and members of the administration to call for more transparency throughout the university.
"We're going to keep encouraging every office on campus to be more open with students," Taylor said. He recommends a student serve on the board of trustees, as some schools allow. "I think that students have been pushing for that for a long time," he said.
Ladner said he's considered adding a student to the board, but he has "mixed feelings."
Students' members can provide useful feedback, but it can take a lot of the board's time and energy to educate students about the board's operation, Ladner said. It may be more efficient to have experienced trustees make decisions.
Amara Romano, a senior in CAS, said a student board member is essential.
"I think it's integral for the university to have student involvement and that's one way to give students a voice"
