Thursday, October 11, 2012

Spending / Expense Scandal at the University of Calgary - Board Chariaman resigns

From the link:

This is a news article from the University of Calgary. "U of C board chairman resigns after spending flap". This is not an uncommon occurrence. When there is unregulated environment, it is natural that there may be uncontrolled / unchecked expenses. It is only when these are made public, that scandal arises. This is where the integrity of the Board of Directors comes into question. This is what the "Agency problem" is all about. The people who are supposed to act as the agents of the people they represent, may not always act in the best interests of those they represent.

As per the scandal mentioned above, "Documents obtained by the Canadian Taxpayers Federation showed that Black had claimed more than $28,000 over 18 months as chair - a list highlighted by stays at Ritz-Carlton and Four Seasons hotels. There were also flight and alcohol expenses the university president said he had to repay because he shouldn't have been able to claim them."

If the expenses of executives were laid bare to the general public, it would shock them. This is true in most places.


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