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Vol.7, No 40, November 8, 1999 
[news]

State investigates university practices

By Elyse Medlin
Daily Forty-Niner

Looking into whether Cal State Long Beach employees committed fraud and theft, a state agency has launched an investigation after receiving a complaint from a CSULB equipment technician.

The California Bureau of State Audits acknowledges allegations of  "equipment theft, inventory fraud and surrounding activity by California State University, Long Beach," according to documents.

John Whittaker, a equipment technician in the communicative disorders department, alleges in a 75-page letter to the Auditor that the CSULB psychology department engaged in a "trading ring" and subsequent inventory fraud to cover up the improper trading.

In addition, Whittaker accuses the campus police of misconduct in the investigation of the "trading ring."

Apparently the equipment in question, which has been described as a polygraph, had been transferred to another CSU campus without paperwork of any sort. Although there appears to be no criminal activity in the transfer, Joe Latter, CSULB Associate Vice President of Financial Management, acknowledged in a letter that the "trading" was done improperly.

"This is a serious violation of state regulations and university procedure," Latter wrote.

The polygraph had been missing from the department for six years, but was never reported as such to the Property Office.

While the specific scope of the Auditor's investigation cannot be disclosed due to state confidentiality laws, the Auditor's office said it will look into only those allegations against state employees.

"We investigate allegations of gross misconduct, gross inefficiency or incompetency of state government employees," said Ann Campbell, director of investigations at the Bureau of State Audits.

"Basically, [we investigate] white-collar crimes."

Whittaker's allegations of "equipment theft" and a "trading ring" have already been investigated by the campus police, although it was "ultimately dropped due to a lack of viable leads to pursue," according to a letter from University Police Chief Jack Pearson in February of this year.

Latter supported this in his letter: "For six years, the University has assumed that it is still on our premises and carried it as such on State records."

The current investigation of CSULB by the Auditor is not the first. In 1996, the Auditor conducted an investigation into allegations of a CSULB employee using state facilities to conduct his private business for personal profit, according to a recent state Auditor report.

The Auditor concluded in the report: "As a result of CSULB's long-standing tolerance of employees using state facilities and equipment for personal projects and the recent policy guidance that grants permission for employees to use state equipment for personal projects, CSULB is condoning violations of state law."

 

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