INVESTIGATION: PSU President Uses University Employee for Private Company

GoLocalPDX has learned that Portland State University President Wim Wiewel has been using an employee of the University to aid his private consulting business, Wiewel Consulting, which utilizes the University-owned President's House as its business address.

Scott Gallagher, the University's Director of Communications, told GoLocal that Wiewel's executive assistant, Rachel Martinez, has in the past communicated with clients or scheduled meetings for Wiewel's consulting business.

“Rachel supports him and his endeavors,” he said. “There are undoubtedly times where she helps arrange travel or plan his day as part of her duties as his assistant.”

Mark Alfano, Associate Professor of Ethics at the University of Oregon, said Wiewel's actions go against classical definitions of justice.

“I'm not a legal expert, so I won't speak to the legality of what he's doing," he said. "On the other hand, when something stinks this bad, there ought to be a law,”

Illegal?

Wiewel's use of his assistant, a University employee whose salary is funded by taxpayer dollars and student tuition, may violate Oregon laws dealing with ethics and conduct of public officials.

According to the Guide for Public Officials, published by the Oregon Ethics Commission, public officials are allowed to own and operate private business. However, by Oregon Statute 244.040, they are not permitted to use public resources, including employees.

“A government agency's supplies, facilities, equipment, employees records or any other public resources are not to be used in private business interests,” the Guide says.

If Wiewel's actions are in violation of ethics rules, the Ethics Commission would be in charge of the investigation and any punishments.

The Commission would begin with a review of a complaint, which they could decide to investigate further or dismiss. As the investigation continues, settlements can be reached between the accused party and the Commission. Civil penalties may be handed out if wrong doing is found, and can include fines of up to $5,000 and forfeiture of any received funds.

Unethical?

Alfano, an Associate Professor of Ethics, said Wiewel has violated a fundamental tenant of morality.

“A basic principle of fairness and justice, which was articulated by the philosopher John Rawls, is that society should be designed in such a way that benefits accrue first to the least well off,” he said. “What we face here is a system where those who are already the most well off take advantage of their power and status to seek further benefits at the expensive of the least well off. If that isn't deeply immoral, I don't know what is.”

Alfano also said Wiewel has “turned state employees into gophers for his private business.”

“When the boss of a small company tells his secretary to wash his car and pick up his kids from school, everyone knows that's corrupt," Alfano said. "It's at least as bad when the boss of a big, public university does the same...The fact that PSU has hired a president who clearly sees his post as just another rung in the corporate ladder speaks to the toxic corporatizing of American higher education.”

Gallagher, PSU's Director of Communications, said that Wiewel's consulting duties go hand and hand in his work and responsibilities with the University.

“He is expected to publish academic works or give speeches as part of his responsibilities with Portland State,” he said. “All tenured faculty, which the President is, are expected to do these sorts of things, so of course his executive assistant would help him schedule his day and things of that nature.”

Gallagher also dismissed the notion that it was improper for Wiewel to receive payment for this work, required by his agreement with the University, twice, once as part of his over $600,000 worth of salary and benefits from Portland State, and again by those that pay for his speaking, writing or consulting services.

“The facts are that the state allows it. The University expects he do these things as part of his job description, and any income that he receives he is allowed to keep,” he said. “There is nothing illegal about it.”

Last week GoLocal published a statement from the University defending Wiewel's consulting business.

"The article, 'PSU President Wiewel uses University House for For-Profit Company' suggests that President Wiewel secretly runs a side business out of his Presidential home," the statement reads in part. "That’s misleading and inflammatory. Like most university presidents and many professors, Dr. Wiewel writes academic books and makes speeches. That is not only allowed under his contract and state rules, but those activities are encouraged by PSU to advance the university’s academic mission."

Students Say “It's Unconscionable”

Letty Martinez, a student at PSU, told GoLocal that knowing Wiewel operates his own private business using public resources is “infuriating.”

“He operates his company using University employees and housing while drawing a very large paycheck funded through the tuition, and loans, of students,” she said. “He really has no cost of living, while students are struggling.”

She also said Wiewel's actions are “unconscionable” when his financial situation is compared with that of students, and professor at the school.

“I've been told my whole life I need to have a good education to get a good job, but I can't afford to get one...There are professors with no job security, working part time jobs to be able to pay their expenses and they're supposed to be educating the next generation,” she said. “He has no struggle, and so much privilege.”

Martinez said she thinks members of the school community need to have honest and meaningful conversations about the state Portland State.

“I think he should be refunding Portland State University,” Martinez said. “I think he needs to be removed and there has to be a serious discussion about how much our administrators make.”

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