That investigation turned up further info that she had a problem with travel reimbursement and had to pay back some money to the university. One would think alarm bells would have been sounding - but apparently not. However, eventually she was arrested after more newspaper reporting and last week pleaded no contest to various charges. You can read this sad tale at http://daviswiki.org/Jennifer_Beeman_%28CVPP%29 (with various links) and at http://www.calwatchdog.com/2011/04/20/uc-davis-fraud-sentencing/.
The tales above deal with outright corruption. But they spotlight a more general problem on UC campuses of managerial control. A typical campus has a lot of bureaucracy at the lower levels, worrying about $20 reimbursements. But as you go up in the administrative hierarchy, the bureaucracy gets very thin. Ultimately, every major unit reports to a chancellor and an EVC. Unfortunately, there is a limit to what two top officials - particularly on larger campuses - can monitor effectively.
So what can develop in the levels below the top two officials is empire building and quasi-autonomous fiefdoms. When things go awry below, top management is insulated until a major problem or controversy arises. While the problem can be corruption as above, it is much more often just poor decision making that can waste scarce funding and/or embarrass the campus.
It probably was the case from the Master Plan era until the 1990s that the managerial system - despite its inherent deficiencies - worked well enough; the state was generally expanding rapidly and there was enough funding around to deal with inefficiencies in control. That era, however, is gone - but the old system remains.
If you have read this far, you might be thinking about the current controversy over the proposed hotel/conference center at UCLA. And, indeed, that is a good example to think about. But it won't be the last unless changes are made.
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