Panel to Unveil Study on Loans by United Way
A citizens committee charged with investigating the financial dealings of the Los Angeles-area United Way will release its findings on Monday.
The 50-page report, which focuses on a series of controversial loans the charity made to five agency executives from 1980 to 1983, is scheduled to be released to United Way officials and to the public at 10 a.m.
United Way officials have said they will respond to the report later in the day.
The citizens’ probe was ordered in June after disclosures that more than $330,000 in donated money was given to the executives. The loans, which were made to the executives to cover relocation costs, extraordinary medical costs and real estate loans, were authorized by charity president Francis X. McNamera with backing, in some cases, from high-ranking volunteers and the members of a key United Way committee.
But most of the money lent--some of which was unsecured and interest-free--has yet to be repaid.
Since the disclosures, McNamera has been on a paid leave of absence and the charity has been involved in an internal reorganization of its auditing and personnel procedures.
Meanwhile, a second investigation of the nonprofit agency’s finances is scheduled for completion Sept. 30. That probe is headed by Los Angeles County Counsel DeWitt Clinton.
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