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About Just out. (Portland, OR) 1983-2013 | View Entire Issue (Oct. 6, 2006)
northwest r PABA Embroiled in Conflict 1 M Treasurer resigns amid controversy by Jaymee R. Cuti ccusations of cronyism, lack of over sight, fiscal impropriety and illegal procedures on the Portland Area Business Association board have led to the resignation of the board’s treasurer and a call for all officers to step down. “As a result of last week’s meeting, it is clear to me that the entire board has failed in our obliga tions to the PABA membership,” said Jackie Wheatley, an accountant specializing in regulation compliance of nonprofit organizations. “1 sincerely hope that the entire board will look at the possibil ity of resignation, as we have clearly not served the interests of our membership." The Sept. 26 mediated board meeting had attempted to help resolve the ongoing conflict and formulate future policy. Problems came to light in August when PABA board member Sean Minogue called for the resig nation of three of the organization’s leaders: Suzanne Deakins, Larry Foltz and Jim Harper. He claimed a business relationship between Foltz, the hoard president, and Deakins, the organization’s newsletter publisher, presented a real or perceived conflict of interests. “A nonprofit or membership organization has to look clehn to the public in all of their dealings,” said Wheatley. At the heart of the conflict is not simply cross pollination in business ventures between the business networking organization, but a lack of oversight, where those overseeing the newsletter stand to profit from it. Deakins owns Q Press/Spirit Press, which has been publishing The Advantage, PABA’s newsletter, since June 2005. According to his business card, Foltz is the editor of Q Press, though Deakins claims he is merely a contracted employee. Deakins, expressing concern for her profession al reputation, strongly denies receiving any special treatment because of her connection to Foltz. In a letter submitted to the PABA board Aug. 10, Minogue also cited a “close personal friendship" between Foltz and Harper, the organization’s A executive director. He indicated the relationship might make Foltz "unable to impartially fulfill his duties as supervisor of PABA executive director." The mediated session became heated as PABA board vice president Anne Seelye defended Deakins’ and Foltz’s right to do business together. “No one will be on this board if that precedence is set. I’m here to be V.P of PABA first, but you bet ter not tell me I can't do business with these people Jackie Wheatley resigned from the PABA board Oct. 2 because I will resign right here," said Seelye, a finan cial planner with Waddell & Reed Financial has continued paying for mailing costs associated from advertising sales. Deakins says because of ads Services. with The Advantage. traded for services and unpaid accounts, that figure According to board secretary Rob Patton, Harper concurred when he said, “It is custom has never been reached. She estimates her average a distinction must exist when contractors do busi earnings at between $500 and $800 an issue for 20 ary that we do it.” ness with the organization. An informal gathering of some PABA board to 40 hours of work. “The issue is if one of us does business with The potential for Deakins to earn a profit on the members did occur at a Northeast Portland restau PABA, that needs to be transparent. It’s different rant in August 2005. According to Deakins, those newsletter infuriates PABA member Chris Reed, than doing business with each other,” said Patton, present agreed that PABA would continue paying owner of A Word in Edgewise. Reed agreed to print owner of the Internet marketing firm Enter-the-Net. postage for the newsletter. The Advantage for free, under the assumption that the During the meeting, another possible violation “1 think it was like a verbal contract," Deakins entire newsletter was created on a volunteer basis. arose. recalled. “We were sitting around talking. It was just “This whole newsletter is a fiasco,” said Reed, Despite a proposal made at the May 18, 2005, a discussion that most of the board was there for.” who is reconsidering whether to print the newsletter executive board meeting that Deakins’ newsletter A year ago, PABA was not an organization through December. “1’11 be damned if I’m going to would result in “no cost to the organization,” the governed by documents and procedures, Deakins spend my time and money printing and folding it. I’m PABA general fund has paid for mailing of the explained. She said board members must be patient not going to support dishonesty. It is dishonest if you newsletter in excess of $2,000 and will continue to as new policies cement. put an ad in a publication [and don’tl pay for it.” pay $160 a month to mail the newsletter until “The idea of precedent in any business is that Reed said if he had known The Advantage Deakins’ agreement expires in Jfecember. whatever was going on before has to be eased out,” publisher was a paid position, he would have bid for The proposal, which was accepted by the Deakins said. “The precedent was already set, and the contract. board, stated: “PABA will be responsible for print it never occurred to anybody that there was “1 don’t feel guilty about backing out of my ing and mailing of the newsletter the first three anything wrong with it because that’s what we had commitment because 1 based that decision on mis months. Once advertising solidifies (we expect been doing.” information,” Reed said. “If people are making this to happen by the end of the first quarter) the The board voted down Minogue’s motion to money on this newsletter, 1 am not going to print cost of printing and mailing will come out of ad recoup mailing costs from Deakins. it for free. I should be getting paid, too.” revenue.” The agreement—including ad revenue “1 can’t see the action the board has made Minogue has expressed an intention to file a and production, printing and circulation cost— tonight as anything other than illegal,” said complaint with the Oregon Department of Justice Minogue, who claims he is motivated by a spirit of for what he believes to be illegal decisions made by was said to be re-evaluated at the end of August 2005. Printing services were donated. More than stewardship for the organization. the board. He is evaluating whether the perceived He and other members also criticize the board’s a year later, Minogue said the board never voted conflict of interest concerns other PABA members. failure to put the sizable $30,000 contract for the on whether PABA should continue paying to mail “I need to explore some conversations to see newsletter up for a general bid. if it matters to members,” said Minogue, owner the newsletter. In Deakins’ agreement with PABA, she was “There’s no record that it came to the board at of Director’s Chair Studio. “At the end of the selected to create a newsletter with the potential to day, 1 think the right thing to do is file the any point,” said Minogue. complaint.” © earn up to $2,500 an issue, generated completely Deakins cites “precedence” as the reason PABA Come check out Portland’s Premiere PERSONAL TRAINING GYM ¡FREE s 3 DAY with 21 Trainers just waiting to have at your body. 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