The embattled UW-Oshkosh Foundation filed for bankruptcy Thursday, with leaders saying their hand was forced by a “flip flop and ill-advised political gamesmanship” from University of Wisconsin System officials who backed out of a potential settlement with the foundation’s creditors.
The System faced pressure from state lawmakers not to use taxpayer money to settle the private nonprofit’s debts — which stem from real estate projects that UW officials say were improperly financed with public money and credit — when the discussions came to light earlier this year.
In a blistering news release Thursday, leaders of the foundation, which oversees fundraising for UW-Oshkosh, said those talks had produced “a fair and reasonable settlement” agreement.
But, they said, the System’s Board of Regents bowed to political pressure and withdrew its support for the settlement, leading to the federal bankruptcy filing.
Remember that this came about because the former Chancellor illegally used taxpayer funds to back risky private building projects of the foundation. Oh, and meanwhile, the foundation bought the Chancellor’s house for roughly $120,000 more than it was worth as he moved on (*cough* kickback *cough*).
The UWO Foundation got caught dealing dirty with its hand in the taxpayers’ cookie jar. They deserve to go bankrupt. Unfortunately, it is their creditors who are left holding the bag.