UC Lab Charges Examined

The University of California, which is under federal scrutiny for alleged financial fraud and other problems at Los Alamos National Laboratory, said Monday that most of the credit card transactions under question have been explained.

UC officials said Monday that auditors have examined $4.9 million in questionable transactions at the lab and so far have found all but about $195,000, or 4%, to be legitimate.

UC Auditor Patrick Reed said he was unable to determine whether the remaining charges were illegal or simply lacked documentation. He said university officials plan to repay the $195,000 to the government.

The latest report comes during heightened federal scrutiny of Los Alamos, which is operated by the university under contract to the Energy Department.

The department, the FBI and several congressional committees are looking into allegations of financial improprieties and mismanagement at the New Mexico lab, along with claims of a cover-up made by two whistle-blowing investigators who were fired by the lab last year. The university rehired them this month.

Energy Secretary Spencer Abraham has warned that the university’s 60-year-old contract to run the lab has been jeopardized. The university has taken steps to address the problems.

UC officials said the report released Monday dealt only with the credit cards, and not with other reports of as much as $2.7 million worth of lost computers and other equipment.

But the lab’s new interim director, George Nanos, said Monday that he viewed the report as relatively good news.

“Although I have to say it’s not pleasant to be the subject of this kind of audit, I am pleased to see that we have gotten the total amount of questionable purchases down to a very low level,” he said.