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MSU strengthens conflict of interest policy after trustees took gifts, did favors

October 25, 2024
MSU President, Kevin Guskiewicz, and Board of Trustees members listen as individuals speak during public comment. The Board of Trustees meeting was held on Sept. 6, 2024, in the Lincoln Room of the Kellogg Center.
MSU President, Kevin Guskiewicz, and Board of Trustees members listen as individuals speak during public comment. The Board of Trustees meeting was held on Sept. 6, 2024, in the Lincoln Room of the Kellogg Center.

Michigan State University’s Board of Trustees unanimously approved changes that strengthen the board’s conflict of interest policy after two of its own members accepted gifts from, and did favors for, people outside the university.

The changes require trustees to sign annual statements agreeing to comply with the policy and list any possible conflicts of interests. 

The scope of the policy has also broadened. Trustees are now required to report and recuse themselves from situations that have even the appearance of a conflict of interest, according to the resolution.

A situation could be a conflict of interest if the university’s general counsel decides that "a reasonable observer, having knowledge of all the relevant facts and circumstances, would conclude that a trustee has an actual or potential conflict of interest," according to the resolution.

The policy now defines what counts as a gift, describing it as "any gratuity, favor, accommodation, discount, entertainment, hospitality, loan, forbearance, services, training, transportation, lodging, meals, kickback, or other items if there is reason to believe it was given to or received by a trustee or a trustee’s family member due to the trustee’s official status."

The policy also forbids former trustees from disclosing "any privileged or confidential information that they acquired acting as a board member."

The changes come after two trustees — Rema Vassar and Dennis Denno — came under fire due to an investigation's findings that they had exchanges with donors and others outside the university.

The board voted earlier this year to refer Vassar and Denno to the governor for removal over their repeated interference in the administration, among other ethics charges revealed by the outside investigation. A spokesperson said Michigan’s governor, the only person with the power to remove a sitting board member from office, is currently considering that request.

An outside firm hired to investigate allegations of board impropriety found in February 2024 that Vassar flew on a donor’s private jet to a March 2023 MSU basketball game. She also accepted courtside tickets from the donor to the game, investigators reported.

Vassar accepted tickets to another basketball game in February 2023 from the donor, who was in discussions with MSU’s administration to obtain trademark rights for his NIL collective. Vassar advocated for the donor’s trademark rights, the firm reported.

Vassar has since denied investigators’ findings, saying she was never told that accepting the flight and tickets was an issue, and that the donor hadn’t intended to make money off of the NIL collective.

Denno, who works part time as a cold case investigator for the Lansing Police Department, demanded in May 2023 that the son of then-police chief Ellery Sosebee get a desirable housing assignment in a residential community he wasn’t a part of, The State News reported.

After the MSU staff complying with his request hit a wall, Denno wrote, "I find this frustrating and it kinda makes me look bad."

Eventually residential housing staff secured the room assignment.

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