Local News in Brief : United Way Official Quits

Los Angeles United Way announced the resignation of one of its five executives who obtained a total of $330,000 in controversial loans from the organization. Alice McHugh, for five years the senior vice president for the planning and resource development division, will leave her $68,000-a-year post Nov. 1.

McHugh, who repaid her $15,0000 loan in June, 1986, said that her decision to resign was unrelated to the loan incident. “It is time to apply my professional strength elsewhere,” she said.

The loans of donated money were investigated by a citizens’ committee and the Los Angeles County counsel, which concluded that the charity had used poor judgment but that there had been no dishonesty. In the wake of the controversy, contributions to last year’s campaign fell $10 million short of the $90-million goal. The charity, which includes 350 social service organizations and 15 health care agencies, will start a new fund-raising campaign later this month.