The San Francisco Chronicle deserves great praise for its work on the University of California's scandalous compensation policies. Yesterday Todd Wallack disclosed:

The University of California has issued thousands of low—interest home loans to executives, faculty members and other selected employees but has refused to reveal who received the money.

That includes an unidentified UC Berkeley professor who received a $250,000 home loan at one—half of 1 percent interest a year —— far less interest than any bank would demand. Another went to an unnamed UC Berkeley dean who got a $203,500 loan at 1.28 percent a year. And dozens of other loans went to unidentified employees who usually wouldn't qualify for the loans —— because they aren't faculty members or top executives —— but were awarded as "exceptions to policy."

If you follow the link, the Chron has posted links to its entire series on UC's heretofore secret spending on its special employees.

Today, The Los Angeles Times has added—up the total assets tied up in these special loans:

The University of California has awarded $702 million in low—interest home loans to executives, faculty and staffers, including some to employees who did not qualify under university policy.

There are nearly 2,000 active university—issued loans, most carrying interest rates of 3% to 4%, but some with much lower rates, the San Francisco Chronicle reported Thursday.

The taxpayers of California have been secretly financing hundreds of millions of dollars of sweetheart loans. The lack of accountability within the University of California system, a multi—billion dollar institution, is shocking.

Thomas Lifson   7 14 06