Staff Writer
In the rift between Medical College of Georgia and its foundation over past donation requests, it appears to be a matter of whom to believe.
Officials with the foundation and the school, in addition to others involved in past discussions, tell polar-opposite stories about what led to the school's decision to cut ties with MCG Foundation and create a new one. The only agreement is that the issues stretch back many years.
Recently, the foundation claimed that MCG President Daniel W. Rahn made inappropriate requests for funds, including $5 million for a foundation tied to former Senate Majority Leader Charles Walker, who is now in federal prison.
Two men who were there when that request was made, according to foundation CEO James Osborne, said Monday they don't remember it.
"I don't recall that meeting at all. I don't recall any request, either," said Augusta attorney Tom Harley.
Accountant Kip Plowman, who now lives in Atlanta, said there were some efforts about seven or eight years ago to try to pull together a local venture capital group to invest in biotechnology startups, possibly at MCG, and that Mr. Walker had tried to involve himself in it.
"But it never got any legs," Mr. Plowman said. "Too much politics and all of that kind of got in the way."
MCG Provost Barry Goldstein said the school has "searched all of our records and our collective memories, and we do not recall any such request of the foundation."
MCG Foundation Chairman William E. Mayher III said former Regent J. Timothy Shelnut called him to make the Walker request, which Mr. Shelnut flatly denied.
"Oh, no, that is totally, totally untrue. Absolutely," he said in a Monday telephone interview.
Dr. Mayher had a similar reaction when told of the denial.
"Oh, my, isn't that unbelievable? That is unbelievable," he said. "All I can tell you is it happened."
Mr. Shelnut, who was on the presidential search committee when Dr. Rahn was chosen, said the foundation pressured him not to push for Dr. Rahn. Dr. Mayher, who also served on the presidential search committee, said then-Chancellor Stephen Portch asked him whom he favored, and Dr. Mayher named another finalist. But the foundation didn't oppose Dr. Rahn becoming president, Dr. Mayher said.
Mr. Shelnut thinks otherwise.
"There's always been a rift," he said. "They were definitely opposed to Dan from the beginning."
Dr. Rahn has not publicly commented on the conflict with the foundation since June 12, when he sent a letter to Dr. Mayher asking the foundation's board to resign or the school would split with it and form a new foundation. The school is "trying to get out of individual personalities because it is not about personalities," Dr. Goldstein said. "So he wants to stay out of that from that perspective."
There might be something more to it than just the issues at hand, and the problem with the foundation could stem from the school's own poor fundraising, Dr. Mayher said.
"We're the scapegoat," he said. "(Dr. Rahn)'s trying to blame us for what he's not been able to do."
Dr. Goldstein said there is no problem with fundraising, which is handled by the school and not the foundation.
Reach Tom Corwin at (706) 823-3213 or tom.corwin@augustachronicle.com.
CONFLICT CAPSULE
BACKGROUND: Medical College of Georgia President Daniel W. Rahn sent a letter June 12 to MCG Foundation Chairman William E. Mayher III, asking the foundation's board to resign by June 27. Otherwise, the school would end its agreement and form a new foundation. Dr. Rahn cited only a "lack of alignment" between the school's goals and the foundation's priorities. However, MCG Provost Barry Goldstein told The Augusta Chronicle that part of the problem stemmed from the foundation's refusal to give the school $5 million to help build a new building for the School of Dentistry. Foundation officials have said that only $8 million of its endowment funds are unrestricted and that the request would have eaten up too much of that.
DEVELOPMENTS:
- The foundation's executive committee unanimously voted not to resign.
- MCG is forming a new, as-yet-unnamed foundation that will begin operating after Sept. 10, when the school's agreement with the current foundation will be terminated.
WHAT'S NEXT:
The school and the foundation are supposed to meet this week to talk about how things will work in the future. The foundation's endowments are expected to continue supporting things such as scholarships and endowed chairs at the school, as they have in the past.