CBC Foundation plans audit of scholarships


The Congressional Black Caucus Foundation is investigating the way its members use its scholarship program after Rep. Eddie Bernice Johnson (D-Texas) admitted doling out education awards to relatives and her top aide’s children.



In a lengthy statement Tuesday, Foundation Chairman Donald Payne (D-N.J.) said the propriety of the scholarship selection process is of “extreme importance” to him, the members of the Congressional Black Caucus (CBC) and the foundation’s leadership.



As part of the audit, Payne said he has instructed every member of the caucus, along with Foundation staff, to immediately review systems to “ensure the highest degree of transparency, integrity and disclosure.”



“When this matter came to light, I immediately undertook measures demanding accountability and validation that members have complied with the guidelines in distributing college scholarships to students in their respective districts,” Payne said. 

“Neither the Foundation nor the CBC will allow unethical behavior in the awarding of scholarships or any programs that are designed to benefit the community,” he added.



Payne said the scholarship selection process needs a thorough overhaul, and pledged to ensure there will be no “self-dealing or nepotism” in the awarding of the scholarships. He also has delayed the launch of the upcoming scholarship program during the audit.



“I will not allow the absence of integrity to invade the Foundation nor the scholarship program, of which we are proud and stand on our record of helping to educate thousands of African- American students across this nation,” he said. 



Payne’s statement comes in the wake of a report by The Dallas Morning News that Johnson directed CBC foundation funds to recipients who were ineligible under the nonprofit’s rules.


Johnson has denied playing favorites in selecting scholarship recipients, but acknowledged violating the rules even though she said she did so “unknowingly” and would work with the foundation to “rectify the financial situation.”


Melanie Sloan, executive director for Citizens for Responsibility and Ethics in Washington, told The Hill Monday that any investigation should begin with CBC Foundation executives because Johnson violated its rules. Sloan called on the Foundation to conduct a full investigation and issue a public report on the circumstances surrounding the scholarships.



“While awarding scholarships to relatives is inexcusable in any event, the more serious question is whether Rep. Johnson knew she was violating the rules when she made the awards,” Sloan said.



If the foundation determines Johnson deliberately violated rules, Sloan said a CBC member should refer the matter to the ethics committee to determine whether her conduct “reflects creditably” on the House. Sloan also said the CBC should consider appointing an outside counsel who has served as a prosecutor to investigate and determine which rules or laws may have been broken.



The CBC Foundation, which is supported by corporate donations, provided $10,000 for each member of the CBC to award scholarships. Each member determines how to split the money and also decides whether a panel of judges, the member or a designated person chooses the recipients.



Johnson awarded nine to 11 scholarships each year between 2005 and 2008. Each of those years, three or four of the winners were related to her or her district director, Rod Givens, the Morning News reported.


Scholarship recipients include two of Johnson’s grandsons and two of her great-nephews, as well as Givens’s son and daughter, the report said.