When it comes to your money, you want to know it’s safe, right? You want to check your account balance and know everything is there. If there’s a withdrawal you don’t recognize, it should be easy to spot, easy to question and easy to fix.
On a student budget such demands may be a possibility, but when dealing with a $2 million a year company like the SF State Associated Student Inc. the rules seem to change, at least according to ASI President David Abella. But should they?
Recently, Abella has been accused of mishandling funds by other board members. Abella entered into a contract with an outside consultant to evaluate internal operations of the corporation. The contract promised the consultant $125 per hour with a maximum of 10 hours of work. His response to these allegations, which was printed in last week’s issue of the [X]press, doesn’t shine the right light on the issue.
FACT: Article VI, section 5 of the ASI bylaws give an officer, such as Abella, the right to enter into a contract on behalf of ASI, unless that contract binds ASI to financial obligations. If the contract involves money, an officer must go through the board for official approval.
FACT: Abella admits in his memo to a “technical violation” of the ASI bylaws by entering into a contract without the official approval of the ASI Board.
Abella said, “The reality of our corporation is that there are instances when the President/CEO of the company must act without the Board’s approval in order to get something important done.”
Any violation is still a violation.
FACT: The bylaws appoint “all agents and employees of Associated Students to assure that their duties are properly and fully performed.” It gives no mention of outside analysis being necessary.
FACT: To pay for the services, Abella would need to transfer funds already allocated within the corporation. However, he has never mentioned where he planned on transferring the funds from. Where did he plan to get this money in the first place?
FACT: In Abella’s memo he said, “The ASI President does not handle funds.” But if Abella does not handle funds and he did not receive official board approval, how did he expect to get the money to pay for the services?
FACT: Abella graciously offered to assume financial responsibility for the consultation services because he violated the bylaws. However, the bylaws prohibit Abella from doing so. Article VI section 11 says, “the Directors shall not be personally liable for the debts, liabilities or other obligations of Associated Students.”
Essentially, Abella has made himself look like the good guy in a bad situation when in reality he cannot actually come through with his promise.
As president of a corporation, how could he ignore all of these rules? How can it be assumed that a rebuttal memo will rectify all the wrongdoing? The fact is Abella had no right to enter into this contract, nor did he have any right to use the money in the manner he intended to.
Before his term is up, the student body deserves to hear some straight answers from Abella. We fund a large part of the ASI and we have a right to know what’s going on with our money.