Missoula News

Politics and Academics

Space Center Investigation Casts Doubt on University Leaders

By Dylan Tucker, 3-06-06

Despite a mission statement as a non-profit company working to stimulate private business in the aerospace industry for Montana, an aerospace company with ties to the University of Montana has little proof that significant work is being done. As a result, the chairman of the Montana Board of Regents wants to know what happened to more than $3 million in NASA grants the Inland Northwest Space Alliance has received since its creation in 2003.

According to its records, the center has promoted some educational outreach programs for schoolchildren, held a benefit golf tournament, begun fundraising for a multi-million dollar children's space camp and little else.

Regents also believe the center was created without their knowledge or approval, casting doubt on the University of Montana's process for such projects and the practices of the university's top administrators.

But Dan Dwyer, vice president of research and development at UM, says despite the spotlight on the investigation into the INSA, the university is not in jeopardy of losing out on other federal grants.

"We have lots and lots of projects that are being run by the books," Dwyer said. "This is just one."

Commissioner of Higher Education Sheila Stearns is questioning the process that created the center without the approval of the regents, and has called the actions of UM's leadership "shocking." UM President George Dennision is defending the work done by INSA, and despite the obvious setbacks, says that the investigation won't hinder the university's ability to get grants for other projects.

Regents Chairman John Mercer last week asked for the state's legislative auditor to investigate the center, as well as the research and development offices of both UM and Montana State University. The chairman also asked for an investigation into Lloyd Chesnut, UM's vice president for research and development from 1997 to 2003.

Chesnut was instrumental in the creation of the Inland Northwest Space Alliance in 2003. The center was created by federal grants obtained through the University of Montana's office of research and development during Chesnut's tenure. Shortly after leaving UM in July of 2003, Chesnut served as president of INSA. Over the next five months, Chesnut received paychecks from the INSA amounting to $15,000, while living and working at the University of North Texas in Denton, Texas. Chestnut's wife, Lucy Rollene Chesnut, served as the INSA's business officer, and was paid $104,100 in annual salary. Lloyd Chesnut is also under investigation for potential conflict of interest violations and tampering with government records at the University of North Texas, where he worked after leaving Montana.

The sudden attention to the INSA's practices has also revealed ties to Republican Montana Sen. Conrad Burns. Burn's former chief of staff, Lee Giacometto, is a paid lobbyist for the aerospace center, according to the U.S. Senate's lobby filing records. His company reported receiving $20,000 in lobbying fees from INSA in 2004, but INSA's tax records show no money spent on lobbying in 2004. A Lee Newspapers report featured Giacometto's relationship with Burns, and the non-profit organization they started together, the U.S.-Asia Network, as part of ongoing coverage of the Senator's lobbying ties over the weekend.

Tax records also show that the current president of INSA, George Bailey, made donations to the campaigns of both Burns and Rep. Denny Rehberg, as well as the campaign of Democratic Sen. Max Baucus in the last election cycle.

According to their tax records, the center paid out almost $1.5 million in salaries and other benefits for about 30 employees from 2003-2005. In addition, $405,575 went into UM's general budget to pay for the center's overhead costs.

The commissioner remains adamant that a thorough investigation into the research practices of the top brass in the university system is necessary.

Dwyer and Dennison remain confident that no wrongdoing on the university's part will be found in the investigation. Dwyer said that in retrospect, the center should have been sent to the regent's for approval. But, unfortunately, he added, that was during Chesnut's time in office.

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