An explosive anonymous website has popped up which is causing a firestorm among the Historically Black College and University community. The website, called THE PAINE PROJECT, details financial and sexual misconduct that goes all the way up to the CME Church’s highest administrators. Among the allegations of financial mismanagement are payments to a former student who had a child by current Paine College president George C. Bradley.
According to the website, Bradley fathered an out-of-wedlock child with a former student at Norfolk State University. When Bradley was considered for his position as president of Paine College this fact was never mentioned during the application process. To make matters worse, allegations have arisen that that president Bradley was ordered to pay child support by the state of Virginia for this child. But the Paine project claims that Federal Title III funds were diverted as child support payments by Bradley. A memorandum was sent by then Paine College Audit Committee Chairman Wayne B. Kendall, dated April 20, 2012. In the memorandum Kendall states “I recently learned this week from an interview with a former employee of the College that the Office of Inspector General of the U.S. Department of Education is conducting an investigation into allegations of misappropriation of funds by the president of the College. This investigation concerns allegations that the president of the College has paid child support payments to a woman who had an out-of-wedlock child by the president. At present it seems the allegations, as to use of Title III funds, have been deemed unfounded.”
However the Paine Project website responds that there are 3 main integrity issues “ (1) lack of candor to the Board of Trustees concerning his family relations by failing to disclose to the Board his relationship with a student at another institution resulting in the paternity of an out-of-wedlock child; (2) his failure to accept financial responsibility for the support of the minor child except upon compulsion by the State of Virginia; and, (3) the as of yet unresolved issue of whether college funds have been misappropriated to the support of the child and the child’s mother.
The website goes on to detail financial mismanagement and human resources issues at the college including:
Mismanagement of Endowment Fund. Paine College’s $8.2M endowment has a net worth of only $4.1M. The endowment has been used as collateral to a line of credit with total borrowings of $4.1M with no payment plan established.
The $4.1M Line Of Credit Borrowing Is Considered All Current Liability. The current ratios that measure liquidity are severely impacted because of this large line of credit. If an organization’s liquidity is in question, then their financial stability will be a concern. Paine’s financial stability has been called into question by the Southern Association of Colleges and Schools Commission on Colleges, aka SACSCOC. [click here to see the 2013 and 2014 SACS Disclosure Statements on the Status of Paine College]
The Endowment Fund Manager, Morgan Stanley Smith Barney, Did Not Receive The Appropriate Board Authorization To Borrow $360,000 Against The Endowment In December 2013. The Bradley administration attempted to have the unauthorized loan paid back prior to the April Board of Trustees meeting; however, there was no cash available to do so. [click here to see letter to Board of Trustees from CFO Ed Patrick]
The Paine College Board Of Trustees Has Not Held Dr. Bradley Accountable For The Eroding Financial And Academic Standing That Is Occurring Under His Administration. Prior to Dr. Bradley, Paine College was not under SACSCOC warning status, or probation, and now Paine College’s accreditation is in jeopardy as the SACSCOC status has moved from warning to the more severe status of probation. There has been no plan presented to the Board to address the ten SACSCOC standard violations that justify the probation status, and yet, Dr. Bradley has been allowed by the Board to continue as the President of Paine College. [click here to see the 2013 and 2014 SACS Disclosure Statements on the Status of Paine College]
Dr. Bradley Has Considered Moving A Significant Portion Of Banking Operations From Wells Fargo To Capitol City Bank. Capitol City Bank is under FDIC watch and some will consider this bank more financially unstable than Paine College, and yet, Dr. Bradley is interested in moving more banking operations to them.
Paine College was established in 1882 in Augusta, Georgia, and these allegations have caused the Southern Association of Colleges and Schools to put the college on serious notice regarding its accreditation status.
