Sunday, January 29, 2006

Internal Revenue Service audit on the University of California Regents?

Submitted by Anonymous:
_________________________________

Is it time to request an Internal Revenue Service audit on the University of California Regents? It seems kind of strange that the UC’s retirement fund is short almost exactly what they have spent on the development of the new LANSLLC, which would include the increased salaries for new management.

Here’s how we are hearing it in the trenches.

The word is that it took $200M dollars and almost two years of time to develop the new LANSLLC contract where all during that time we were paying for the participant’s travel, food, lodging, and perks. I will assure you that they were not staying at the hotel 6. We also hear about an
expenditure of $100M dollars on administrative fees that were mysteriously overlooked during the negotiations, but those funds had to be found somehow. And finally there’s Mike Anastasio’s exuberant salary being reported to be $1.3M a years, up from his previous $420K a year. So here is some food for thought.

Is it possible that the UC used approximate $350M of the UCRP funds in order to finance a scheme that in the end could only lead to depriving its employees of their hard earned entitlements? Or, was it something else?

Could it be that the UC’s claim to a windfall shortage is false information entirely, so that the surplus did not have to be handed over to LANSLLC to kick-start their pension plan.

As an outsider I still view either one of these scenarios as a criminal offense punishable by imprisonment. So what do you say? Should we have the IRS investigate the issues at hand or just let the UC/ DOE once again get away with one more act of defiance in the face of its employees?

All of what was stated above is purely hear-say, rumor and speculation but if you look at the numbers and the most recent attempt by the UC to separate LANL and LLNL from the primary UCRP in order to escape all current and future liabilities, then maybe the rumors are not that far away from being the truth.

I say it’s time for an audit. Maybe once the IRS opens up a case, those missing funds will somehow materialize and we will not have to start contributions, as they claim.

I personally do not trust the UC / DOE at this time. How about you?

Comments:
I have been on record for over 1-1/2 years: With regard to LANL and its service of scientific research for the nation, I do not trust the Bush Administration, Congress, DOE, NNSA, UC, LANL upper management, or the Media to protect our interests. I do not trust the prospective LANS-LLC, either. None have yet performed honorably; none have yet earned my trust.

Like all things in this country, it's up to the people themselves to stand up, think for themselves, and ACT in their own self-interest. If they don't; they deserve the screwing that they will most assuredly receive from their abusers/masters.

-Brad
 
Maybe someone should also investigate which LANL division leaders and up spent weeks in California helping to write parts of UC/Bechtel's response to the RFP?
 
I'd like to see an analysis of the LANS-LLC incorporation in the State of Delaware as a federally-favored "small business".
 
Come on, now, folks! Do you really think UC stoled millions directly from
our pension in order to make the LANS bid? If so, then I suggest you break
out the tin foil, because it's hat-making time. UCOP may be obtuse and
stupid at times, but the people running UCOP don't want to end up in some
Federal "pound-me-in-the-ass" prison.
 
This post has been removed by a blog administrator.
 
Unsubstantiated rumors hiding behind anonymous posts are not helpful. This certainly does not encourage trust of people which is what is being requested of LANS. I don't think it is fair to demand trust when you won't do so openly.
Also, I would like to know what it is that LANS has done to cause distrust.
I fully understand that LANS and Anastasio has to work to restore trust, but that doesn't mean that they are automatically dishonest.
 
Given that UC has been demonstratively dishonest, and given that UC remains a part of LANL as one of the LANS partners, I believe the expectation of that continued behavior to be quite reasonable. I also don't feel that it is my place to tell people what they should, or should not be thinking.

As for myself, I am willing to be proven wrong in my own personal expectation that the overall situation will not improve at LANL in the areas of openness and honesty on the part of the new contractor.

I won't be holding my breath, however.

--Doug
 
I am no fan of UC or the new LLC but I seriously doubt that UC took money from the retirement fund for financing this proposal. Though I suspect all kinds of hanky panky in the way money managers are chosen and investment decisions are made, the use of retirement funds for proposal writing seems way to obvious even for UC Regents.
The best way to find out the truth about what is going on with the retirement funds, as far as I know, is still from Charlie Schwartz, UC Professor-Emeritus who keeps us up to date on the retirement funds at his website at:
http://ist-socrates.berkeley.edu/~schwrtz/ Charlie lists his email address and would probably answer any reasonably asked question about the use of retirement funds, as well. Charlie is definitely on the side of the employee and not the Regents and has to qualms about being frank about his opinion of the Regents' actions.

I suggest those of you who are suspicious, try this tack.
 
300 MILLION DOLLARS to do the bid? What is this, Dr Evil giving reports? I am sorry but that doesnt pass the smell test. I can see 3 million or 30 million, but I am sorry 300 million is way out. I mean for all the money that Enron lost (in billions of dollars) the main culprits only made off with 10's of millions of themselves.. and the Tycho president while losing billions, only bilked the system for 40 million.

I have the feeling that this rumour was started by an Astro-physicist.. it was one of our common sayings in school that as long as we were in 1 to 2 orders of magnitude you are correct.

I think that putting such numbers together and then calling the IRS will get you in the same crank call area as the guy who keeps saying canibal aliens are living next door. It might be true, but until you can take to the police the severed leg of their last victim, you arent going to be believed... even if the guys have glowing eyes.
 
Why not start a letter writing campaign to professional organizations, publications, and alma maters stating what an unreliable and unethical employer UC and the US Goverment has become? It would be remiss of us old guys to encourage younger people to come make their careers here only to have their retirement modified to be 'substantially equilavent' of the promises made.
 
oldlabwienie, I already have. I don't take students anymore. I recommend to young folks to find scientific careers in the real world away from the federal trough.
 
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