Does the government think nonprofit governance matters? You bet it does!
Whenever I see one of these occasions where a politician uses a nonprofit for personal gain, it's irritating. But of course, my big question is always -- where's the board? It's generally a silly question because we all know, when a politician is gaining personally through a nonprofit, the board is often "in" on it -- either gaining as well or compliant for other reasons.
According to the New York Times, Attorney General Andrew M. Cuomo has filed a civil lawsuit against Senate Majority Leader Pedro Espada Jr. alleging that Mr. Espada, his family and his political aides had siphoned more than $14 million from a health care nonprofit he founded to pay for meals, vacations and campaign expenses.
The lawsuit, part of an ongoing investigation by Mr. Cuomo into Mr. Espada’s political and business activities, seeks to remove Mr. Espada from his position as president of the nonprofit, Comprehensive Community Development Corporation, which runs a network of Bronx health care clinics that receive the vast majority of their funding from the federal and state governments.
The lawsuit also seeks to remove the nonprofit’s entire board, which Mr. Cuomo said was stacked with Espada family members and friends who rubber-stamped millions of dollars’ worth of inappropriate contracts and expenditures.
Go Mr. Cuomo and Boards beware! You are responsible and the consequences could be as much yours as your executive's.