Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, February 28, 1992 TAG: 9202280260
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: MONICA DAVEY
DATELINE: LENGTH: Long
UNITED WAY'S NATIONAL CHIEF AGREES TO QUIT
William Aramony stepped down as head of United Way of America on Thursday after local chapters of the charity - including Roanoke's - decided to withhold funds to the national group until questions about Aramony and his spending habits were answered.Aramony, president of the national organization for 22 years, told local United Way leaders in a live television conference that he was sorry.
"I do apologize for any problems that my lack of sensitivity to perceptions has caused this movement," said Aramony, who emphasized his words with hand gestures. "Absolutely. I do it happily and gladly."
Aramony had been criticized recently over published reports that as head of the successful, $29 million-a-year charity he was paid $463,000 in salary and other compensation, traveled in luxury and rewarded his friends and relatives with job offers.
For Roanoke-area United Way leaders - who were among the first in the country to delay paying dues to the national organization in light of the reports - Aramony's resignation message was bittersweet: painful, but necessary.
They watched the hourlong teleconference quietly from a room in Red Cross headquarters.
"It's not a cause for celebration," Robert Kulinski, executive director of United Way of Roanoke Valley, said afterward.
"Unfortunately, there was no way to resolve this situation as long as he remained in office. Many of us have come to the conclusion that this was a necessity. I'm glad he took it this way, with class and dignity, and didn't have to be forced out."
Aramony turned in his resignation Wednesday, but agreed at the request of United Way officials to stay on until a successor is named. Aramony, 64, had been set to retire in July anyway.
In the conference beamed to local United Way offices, Aramony conceded that he would have done some things differently if he could do them over.
"You bet," Aramony said. "I didn't pay enough attention to detail or to the way some of my actions could have been perceived or my personal style could have been perceived by people.
"I'm a mover and I get things done, but the price I paid for that was not enough attention to detail," he added.
Berl Bernhard, an attorney whose firm is reviewing another company's investigation into the United Way's finances and practices, said no violations of the law have turned up.
"What's important is . . . there was no misappropriation found, no embezzlement found, no fraud, no malfeasance in office," said Bernhard, who appeared with Aramony on the teleconference Thursday. "There was no finding of diversion for personal enrichment by Mr. Aramony, period."
The investigation did raise "questions of sloppy record-keeping, inattention to certain detail and documentation," Bernhard said.
On April 2, Bernhard's firm will report to the United Way of America's board with details of its review and with suggested changes in procedure.
"But I can assure you," Bernhard said, "changes are already being made."
Employees of the organization now are banned from flying first-class, from flying supersonic aircraft and from riding anything but the "most economical" forms of transportation on the ground, he said.
Aramony is alleged to have flown in high style - including a few trips across the Atlantic on the Concorde. He's also accused of riding at times in chauffered cars.
Local United Way leaders across the country had feared their organizations - and fund-raising efforts - would be tainted by the allegations about the national group.
Some 1,400 local United Way groups voluntarily pay dues to the national organization, which Kulinski described as similar to a national trade association.
In exchange for 1 percent of their funds, the local organizations get national advertising, training courses and discounts on United Way materials.
Representatives for some of those local organizations nationwide called in to the teleconference on Thursday with comments for Aramony that were clearly pointed and angry.
Charlie Towers, of the Jacksonville, Fla., United Way, was concerned about how much Aramony's successor, whoever that turns out to be, will earn.
"My problem is simply this," Towers said. "I think there is a difference between the head of a charitable organization and being head of a corporation for profit."
Whether Southwest Virginia United Way groups will be damaged by the allegations remains to be seen, said William Whelan, head of Lynchburg's group.
"I do know, I think, that there's a sense of relief that we have an action taken," Whelan said after Aramony's comments. "The guy has contributed a lot to our business.
"But, we've got to get on with our business and now we can address ourselves to that, full-time."
Amy Whitlow, executive director of the Henry County and Martinsville group, agreed.
"I just feel like we've got a lot of business to get on with in Martinsville that we can better get on with now," she said.
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