Tuesday, March 3, 2020

USM Defends Itself in DHS Scandal

The University of Southern Mississippi issued the following statement on the MCEC scandal. 


The University of Southern Mississippi (USM) takes seriously reports that it may have been the recipient of funds alleged to have been misused by the Mississippi Community Education Center (MCEC), resulting from MCEC’s relationship with the Department of Human Services. The University operates in an ethical, transparent manner and considers stewardship of public funds to be an essential part of maintaining the public trust.

As media reports indicated, the Southern Miss Athletic Foundation and MCEC entered into a lease agreement in 2017 that allows MCEC to utilize University athletic facilities, including the new Wellness Center, through 2022. As part of the agreement, MCEC had the opportunity to help guide the facility’s layout to meet its specific programming needs.

It is important to clarify a few points regarding recent media reports:

  1. USM’s role in the agreement is as the lessor of facilities, while MCEC’s role is to develop and conduct programming. MCEC proposed to the Athletic Foundation that the University facilities on University’s campus be leased by the Athletic Foundation and subleased to MCEC for delivery of services consistent with the MCEC mission as well as services that coincide with existing University activities and services and the mission of the University and the Foundation. USM is disappointed that the concept has not materialized to the extent presented to the University—through no fault of USM.
  2. The IHL Board approves certain contracts and agreements of the University; however, the board does not have jurisdiction to approve or disapprove agreements made between the Athletic Foundation and outside entities, such as the MCEC. The Athletic Foundation has the ability to establish those relationships of its own accord. Therefore, the IHL Board did not vote to approve an agreement between the Southern Miss Athletic Foundation and the MCEC.
  3. The agreement between the Southern Miss Athletic Foundation and MCEC stipulated that if MCEC should vacate or abandon the leased Premises and fail to use any part of the Premises for a period of twelve consecutive months, then MCEC would be considered in default and the Foundation shall be entitled to terminate the Sublease, with no refund of Rent.
The University of Southern Mississippi and the Southern Miss Athletic Foundation have acted in accordance with both the lease agreement and the sublease agreement.

Note: Anna Wolfe reported last week:

 The Mississippi Community Education Center, a nonprofit that receives a majority of its budget from taxpayer dollars intended to help people out of poverty, provided most of the funding for the volleyball center through an upfront five-year sublease agreement with the University’s athletic foundation. The nonprofit owner, Nancy New, sat on the athletic foundation’s board. The university modified plans to the facility, called the Wellness Center, so that it would include office space for the organization....

 Under the 2017 lease agreement, obtained by Mississippi Today, the Mississippi Community Education Center rented all university athletic facilities “for various activities that benefit the area’s underserved population,” but one former employee said that never happened and by Thursday, after over a week of inquiry, the university had still not explained what the nonprofit accomplished on campus..... Rest of article.

39 comments:

Anonymous said...

The powers that be at MDHS apparently approved and supported this lease agreement and provided the full up front funding for the agreement as well. None of these articles notes that little fact in this "sprawling conspiracy".

Anonymous said...

Wow. $5 million dollars of Ms welfare money from New for a volleyball court as a favor to her buddy Brett Favre. There is no end to this embezzlement scandal or the greed and entitlement that precipitated and fueled it . . . For anyone tempted to disagree, read the Mississippi Today article before making any ill-informed bone-headed comments.

Unknown said...

USM has an athletics program?

Anonymous said...

... read the Mississippi Today article before making any ill-informed bone-headed comments.

MT story does not support this statement:

There is no end to this embezzlement scandal or the greed and entitlement that precipitated and fueled it.

Anonymous said...

You mean the one-sided Mississippi Today article with half truths and minimal facts, with info clearly provided by MDHS folks trying to shade their responsibility?

Why did MDHS provide the money?

Why did MDHS approve the lease?

Anonymous said...

Um, 1:53, MS Today pretty much slammed the whole USM thing. If anybody is doing damage control for USM and its #1 alum, it would be the Yall blog.

That said, no university would turn away a tenant who promised to fund major construction in return for part time use of the facility. The fact that the non-profit never intended to use the facility is not USM's problem.

No different than Ole Miss running DHS banner ads around the vaught during games. DHS had as much business advertising on a football stadium as it did funding a volleyball court.

Anonymous said...

Southern Miss To The Top!!!

Anonymous said...

Hey USM it's called "creating facts". It's a done deal. The building has been built the money spent. What are they going to do, tear it down? You don't have to say anything or justify the stolen property to anybody. If anything it's a sign that USM has "arrived" in the bigtime. Not every school can make these kind of connections and laugh about it. Enjoy. To the Top!

Anonymous said...

Maybe because MDHS was told to provide the money and approve the lease???

Anonymous said...

MS Today pretty much slammed the whole USM thing.

MT = NO Heft

Zero, Nada, Zilch.

Anonymous said...

Athletic fundraising. Twenty years from now (or maybe 20 weeks) nobody will give a damn where the stadium money came from. Lots of universities owe their beautiful facilities and huge endowments to thieves, bootleggers, slave merchants, weapons dealers, dope peddlers, etc. It don't matter once the money has been spent.

Anonymous said...

Someone needs to investigate how much taxpayer money is used to prop of what is basically a propaganda organ of the Mississippi GOP - Supertalk Radio - under the guise of advertising. Go listen to that radio station & count the number of ads that are government agencies.

Anonymous said...

3:27. Leave LSU out of this.

SMTTB said...

Sorry, but it was NOT a favor to her 'buddy Brett Favre'. He never heard of the woman. It was a conspiracy involving Feel Brant. Period. End of story that will not be pursued.

Anonymous said...

Why is no one talking about John Davis. The man was like a kid in a candy store throwing away welfare money for special projects that he wanted to do. Now he’s hiding behind other people to make himself look clean. He was the one responsible for how the money was to be spent and it was his job to oversee that money.

Anonymous said...

Be keerful, 3:47 - You might cause Gallo to stroke-out.

Anonymous said...

Where did Philbilly graduate from?

Anonymous said...

1:34. Yes, they have an athletic program. Just not funded by Bammer, which is the noticeable difference.

Anonymous said...

Without all the government paid Public Service Announcements Supertalk Radio would be playing Rush Limbaughs Spatula City commercials to fill dead air like EIB does. Robert Mercer bank rolls most national right wing radio but who funds Mississippi's Ministry of Troooth?

Anonymous said...

Thing is @6:21 you, yourself, have NO audience.

Anonymous said...

While I'm not really sure what happened at that little college in Hattiesburg, I really do wish they would face reality . . . and quit trying to pretend they are equal to the SEC.

Anonymous said...

Let me see if I have got this. According to USM’s statement:

(1) USM leased its own facilities to its own Foundation (for an unstated amount).
(2) The Foundation subleased the facilities to the MCEC.
(3) The MCEC paid the Foundation a lease payment of $5 million.
(4) The Foundation donated the $5 million back to USM (or paid USM the unstated amount of the original lease).
(5) Then, USM spent the $5 million to build a new facility on its campus.

If I understand USM’s statement, since USM owns the Foundation, the IHL does not have to approve the lease between USM and the Foundation. But, since the Foundation is a legal entity on its own, the IHL cannot approve any agreements, including the sublease, between the Foundation and a third party.

So, would Martha Saunders, if she had instructed the Foundation to purchase those electronic tablets and then lease the tablets to the USM instead of purchasing those tablets through the USM purchasing department without IHL approval, still be president of USM?

Anonymous said...

Bottom line is this......MDHS provided the funding and approved and encouraged the lease agreement with Southern Miss. John Davis led the charge, and current MDHS Interim Executive Director Jacob Black and former Deputy Director Garrig Shields coordinated the effort. Southern Miss and MCEC are taking the blame, but it’s a big red herring. The OSA is covering for MDHS and a small group of individuals have been covering for Jacob Black. Watch as this thing develops. This is but one of numerous situations where MDHS directed various non-profits that it funded to fund specific projects. There are dozens of situations like this and MDHS knows it, and they’re nervous. They’re on the hook for TANF....it’s their responsibility. The sooner the Feds come in and really dig into MDHS and the OSA for that matter, the better.

Kudos to KF if he actually posts this comment.

Anonymous said...

4:54pm wins for today. That is all.

Anonymous said...

You must admit it, that is one damn nice volleyball facility. Thank you to the poor people for sacrificing yet again for the rest of us. Volleyball will help lead you out of the wilderness of the poor. God Speed!

Anonymous said...

My bet is Phil Bryant was behind it all. He promoted John Davis yo MDHS Director. Jacob Black is Phil’s boy too. Phil made sure his alum , USM, got their volleyball court, Phil knew and approved it! Phil is guilty , wait and see,

Anonymous said...

6:11 and other Supertalk commentators, if/when Gallo is gone, Steve Davenport will likely have to shut it down. With JT gone, the rest of the lineup isn't worth listening to.

Anonymous said...

11:50, Phil is definitely guilty. Guilty of directing dollars to non-profits of his favored supporters and his alma mater. But there is nothing wrong with that. That's politics.

What these folks did with the money once they got it, now that's illegal. Phil did nothing wrong except putting the wrong people in the wrong seats and trusting the wrong people.

Anonymous said...

@4:54 For the win!!
.....oh yeah & Hotty Toddy y'all

Anonymous said...

@ 6:24 - these non-profits do not decide on their own where and to whom to send the money. They are told and directed. And, there is a wide variety of things that federal funds can be used for. Just because someone doesn't agree with money being spent on a particular project doesn't mean that the expenditure is wrong, much less "illegal".

Anonymous said...

What!!! I haven't listened to state radio in so long. What happen to JT???

Anonymous said...

Convoluted

The adjective that fits the sentence construction, rationale and the scheme as implemented.

Anonymous said...

Legendary Life Tips with BRETT FAVRE and his copper-fit arthritic ass

Anonymous said...

Southern Miss beating the fighting toddy's at their own game? Say it ain't so!

Anonymous said...

Disgusting to say the least...USM should "teach" students by taking responsibility and full accountability...and offer a solution to reimburse the $5 Million rather than deflecting the real issue.

Anonymous said...

3:17 You must be a graduate of U.M. (the University of Mars). First rule of fundraising: You don't ask where the donors got the money and you don't give it back. USM should try and cultivate more big dollar donors. Maybe then they could get out of that piss-poor conference.

Anonymous said...

Hey 3:17 Haven't you heard? USM will give all welfare recipients a 10% discount on volleyball season tickets. Children under 12, half price. Be prepared to show proper I.D. What more can you ask?

Anonymous said...

We should all feel proud that the state of Mississippi will have its image uplifted greatly by the generosity displayed in building such a grand sports venue for the benefit of the desperately poor volleyball players here. Now if only the state would throw a few million into supporting the poor aspiring ballet dancers of the state our image would rise to the position it deserves just above W Virginia.

Anonymous said...

USM is a total crap school. I got a degree from there, and can say that I - and my friends who also attended - wasted their time. Any prestige it ever had has been diminished in the last 20 years. You'd be better off with an AA from Hinds or another community college - than any degree from Southern Miss. Not worth the time. Not worth the travel.


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