08-04-2009, 08:33 PM
Niranjan falls on his sword.
Will the U of Illinois Conflict of Interest Officer Melanie Loots do the honorable thing? Don't hold your breath waiting for that. Maybe she can get Niranjan a nice side of pork ribs as a going away present?
Will the U of Illinois Conflict of Interest Officer Melanie Loots do the honorable thing? Don't hold your breath waiting for that. Maybe she can get Niranjan a nice side of pork ribs as a going away present?
Quote:U. of I. board chairman quits amid scandal
August 3, 2009 9:27 PM
Days before a state panel is set to blast him for his heavy-handedness in University of Illinois affairs, board Chairman Niranjan Shah resigned his powerful post Monday while accepting some blame for his role in a far-reaching admissions scandal.
An Oak Brook businessman and prolific political donor, Shah becomes the second university trustee to step down amid allegations that he overstepped his authority in meddling with undergraduate and graduate applications. Trustee Lawrence Eppley resigned last week, saying he wanted to restore public confidence in the Urbana-Champaign campus.
Shah's departure leaves behind a fractured board grappling with an uncertain future. The remaining seven governor-appointed members will be urged to submit their resignations when the Illinois Admissions Review Commission releases its report this week.
"I don't know who else might decide to resign, so it leaves the board in limbo," trustee Frances Carroll said. "My concern is we won't be able to do the business of the university if everyone is resigning."
Shah and fellow board members came under scrutiny following revelations of clout lists that gave well-connected applicants an admissions edge at the state's most selective public university. Records show that Shah's sway also influenced housing and employment decisions involving his relatives and at least one employee's child.
In a statement released shortly after his resignation, Shah said such actions were acceptable in the past, but acknowledged they are more difficult to condone in the current political climate.
"When I became a Trustee ... many of the stakeholders in the University of Illinois system -- Trustees, university administrators and staff, legislators and others -- operated under a set of rules and norms that seemed appropriate at the time," Shah said in a prepared statement. "Today, I recognize that those rules are changing with the times, and I think that change is a very good thing."
Shah told the commission that many of his most aggressive requests were written by a secretary at his Chicago-based engineering firm who embellished his intentions. He also pointed a finger at Chancellor Richard Herman and previous U. of I. President James Stukel, blaming them for facilitating his meddling rather than telling him it was wrong.
Pledging his commitment to a smooth transition, Shah indicated he would step down in 90 days or when his successor is appointed. Gov. Pat Quinn released a statement saying the search will begin immediately.
U. of I. spokesman Thomas Hardy said the school's operations will be unfazed by the resignations.
"We will be in a bit of transition period here, but we have gone through transitions in the past and have remained strong," he said.
If Shah hadn't resigned, he likely would have been asked to step down. The state panel intends to recommend this week that all trustees quit, allowing Quinn to decide who should stay. The commissioners had focused on Shah, saying he may have violated the Illinois Ethics Act rules against nepotism.
After learning of his resignation, Commissioner Maribeth Vander Weele said: "Clearly it was the right thing to do. Trustee Shah's actions were the most egregious of any trustees' [actions]."
Having grown up in an Indian village without electricity or running water, Shah testified that he prized his trustee position because it embodied his father's belief that education was the only route to equality. He went on to establish himself as one of the state's leading engineers and a powerful figure in political circles.
"His resignation is consistent with the Niranjan Shah that I have always known," trustee David Dorris said. "In difficult times, he has chosen to do what he believes is in the best interest of the University of Illinois."
Shah joined the board in 2003 after being appointed by then-Gov. Rod Blagojevich. He became chairman in January, the first Asian-American to hold the post.
He previously was a member of the state Board of Regents until it dissolved in 1995 and was a trustee of Northeastern Illinois University.
Shah hosted a fundraiser at his home for Blagojevich and dined with the former first couple in Springfield, state records show. He even spent a night at the governor's mansion.
Companies associated with Shah have received more than $30 million in state contracts since 2004 and contributed more than $53,000 to Blagojevich since 2000. His firm's records were subpoenaed last year as part of the pay-to-play probe of the former governor's administration. The firm has not been accused of wrongdoing.
It was against this political backdrop that Shah's family members and friends received special treatment from the university.
In 2007, for instance, Shah parlayed his connection with Herman to secure a high-paying university job for his future son-in-law, a Dutch citizen seeking work in the United States.
Shah has said he "encouraged" the university to hire Maarten de Jeu, "an exceptionally well qualified" applicant who graduated first in his class from an executive MBA program at Oxford University.
Two Shah relatives gained entry to the university's law school even though administrators suggested tutoring for at least one of them before he even enrolled.
Shah has denied involvement in the relatives' admission. Indeed, documents seem to indicate he did not directly pressure campus officials, but that they were aware the applicants were relatives.
In testimony before the commission, Shah also acknowledged intervening on another relative's behalf when she failed to apply for the honors program on time and did not receive her preferred housing assignment.
Records show he did not restrict his meddling to relatives.
In March 2008, Shah pushed for a student to be admitted to the rigorous MBA program, even though Herman warned of "serious concerns about his ability to handle the academics" and said the student's GPA was "below what is admissible."
E-mails show that when Shah pressed for a decision before he visited the student's family in India, the business school relented and offered the applicant a spot.
Shah leaves behind a deeply divided board that, for example, has been unable to agree on such routine tasks as approving tuition. It also loses his deep knowledge of contracts and the bidding process. Fellow trustees say Shah's engineering expertise has saved millions of dollars in construction costs.
"He was such a valuable asset," trustee James Montgomery said. "He's probably the only member of the trustees who has the technical skills and know-how to deal with the infrastructure work we do on a daily basis."
In the end, his apparent ethics violations proved insurmountable.
"Everyone has talents, and I'm sure he has many," Commissioner Bernard Judge said. "But the record of his involvement in ad- missions is very strong against him."
-- Tara Malone, Stacy St. Clair, Jodi S. Cohen