Considering how much cash has already been squandered by the U of L Foundation, the news that the school now plans to spend an additional $400,000 to continue its ongoing forensic audit may seem frustrating. But it could be the best money U of L’s ever spent.
Right now, high-end estimates of the losses incurred due to the shady dealings of the foundation under former U of L President James Ramsey range from 65 to as much as 100 million dollars. And additional scrutiny may well drive those figures higher.
This is important because the current governing boards of the university and foundation will need as much ammunition as possible if they file lawsuits to recover any of the misspent money from the individuals responsible for this debacle.
These losses weren’t due to a streak of unfortunate but innocent mistakes. A lot of deft calculation went into steering money to places it had no business going, and then making that money trail so confusing it would never be detected.
But now, the whole scheme is unraveling. And if a more complete audit can prove that any of the financial windfalls received by Ramsey or his former Chief Kathleen Smith were ill-gotten, then the money that U of L may be able to claw back from them in court will make the added expense more than worth it.
I’m Bill Lamb and that’s my Point of View.