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Serving the students and the University community since 1893
Volume 98, Issue 54
Wednesday, September 5, 1990
Chapel Hill, North Carolina
New Itaidls wMl not end bBdset atish
o a e Q w
Bush wants Egypt's
military debt waived
WASHINGTON President Bush
has decided to ask Congress to forgive
Egypt's entire $7 billion military debt
because of its leadership standing up to
Iraqi aggression, the White House an
White House spokesman Marlin
Fitzwater said forgiving the debt "rec
ognizes the strategic importance of
Egypt" in the multinational effort to
enforce the United Nations' trade em
bargo against Baghdad.
"It is a symbol of our appreciation"
for the role played by Egyptian President
Hosni Mubarak, Fitzwater said.
Bush consulted with congressional
leaders before making the decision,
Fitzwater said. Waiving Egypt's mili
tary debt largely amassed through
U.S. arms sales to Cairo requires an
act of Congress.
Another $6 billion in non-military
Egyptian debt to the United States would
not be affected, Fitzwater said.
North, South Korean
prime ministers meet
SEOUL, South Korea South
Korea's prime minister, meeting his
North Korean counterpart for the first
time Tuesday, said the two must work
together to "thaw the thick ice of dis
trust." Their meeting marked the highest
level contact between the hostile Koreas
since the division of the peninsula in
By holding formal talks starting
Wednesday, Communist North Korea
gives tacit recognition to the legitimacy
of the South Korean government it has
refused to recognize for more than four
Talks on Wednesday and Thursday
are to focus on easing military and po
litical confrontation and launching
multilateral exchanges subjects
general enough to cover almost anything
either side wants to talk about.
40 South Africans die
in factional fighting
JOHANNESBURG, South Africa
Soldiers fired on thousands of angry
blacks Tuesday and rival gangs fought
with axes, knives and spears as at least
40 people were killed in township vio
lence. The violence came as President F.W.
de Klerk and African National Congress
leader Nelson Mandela visited black
townships near Johannesburg to call for
an end to the black factional fighting
that has killed more than 550 people
since Aug. 12.
The government has imposed emer
gency restrictions and sent elite army
units to the townships, but fighting be
tween Zulu followers of the conserva
tive Inkatha movement and other blacks
loyal to the ANC raged for a fourth
In Sebokeng, a pre-dawn clash killed
four people at a migrant workers' hos
tel, police said.
About 5,000 township residents an
gered by the killings gathered at the
hostel, police said.
When the mob refused to disperse,
army troops were called in and a "shoot
ing incident occurred," said police Col.
"The bodies of 1 1 persons were found
after the mob dispersed."
From Associated Press reports
Filing for dollars
Community colleges to request addi
tional funding 2
Lending an ear
Student Congress begins regular
public hearings 3
Pump up the volley
Volleyball team enters season with
spirit, many new faces, 7
State and national 2
Sports . 6
1990 DTH Publishing Corp. All rights reserved.
By PETER THUESEN
An additional $2.46 million the
University will receive from the state
this quarter will not restore lost UNC
services, and even leaner times are on
the way, University officials said
The state budget office recently al
located the extra funds to cover a 4
percent state employee base pay raise
mandated by the General Assembly.
"It permits us to meet our payroll
obligations, but it doesn't do anything
for our other concerns," said Provost
Dennis O'Connor, vice chancellor for
And with the total allotment for this
quarter still almost $5 million short of
UNC's original request, University of
Just doing it
Kimberly Smith, a freshman from
advantage of the pleasantly mild
Financial crunch jeopardizes
Campus T renovation plans
By THOMAS HEALY
Plans and specifications for renova
tions to the Campus Y Building are
behind schedule and could be scrapped
altogether if the University decides the
funds are needed elsewhere, officials
Ben Tuchi, vice chancellor of busi
ness and finance, said the University
had not decided whether to carry out the
renovations or use the funds in other
"We can't make a decision yet. We
have to know exactly what our first
quarter burden is under the allocation
reductions," Tuchi said. "We have to
determine what our financial responsi
bilities are vis a vis to the rest of the
Donald Boulton, dean of student af
fairs, said the renovations were origi
nally slated to begin in October. That
date was pushed back when the state
insurance commission inspected the
building and issued several requirements
to "bring the building up to code." De
signs and specifications now must be
altered to suit the commission's findings,
By ELIZABETH BYRD
By ELIZABETH BYRD
UNC officials said that most prob
lems cited in a state audit report have
been addressed and that other problems
will be corrected soon.
The report, which was issued in late
August, criticized the role of the Board
of Trustees and campus administrators
in the University's financial affairs.
"There's no reason for it (the audit
report) to be a big deal," said Wayne
Jones, associate vice chancellor for fi
nance and business. "I think it's been
blown out of proportion. There have
been more findings than in the past, but
many of them are not significant and
had already been acted on."
We are all born mad. Some remain so. Samuel Beckett
ficials say there is not enough money to
pay basic operating expenses, including
Provost O'Connor conceded that
UNC theoretically could cover its first
quarter utility expenses.
"But if we pay for utilities, we must
cut back in other areas," he said. "Then
we couldn't do other things which keep
this place open."
Although University officials are
working to prevent the postponement
of bill payments until the next fiscal
quarter, that is an undesirable possibil
ity, said Ben Tuchi, vice chancellor of
business and finance.
"But you can only permit that to
occur to the extent you believe you can
subsequently cover it," Tuchi said.
"Otherwise, it's akin to an individual
High Point, takes
Gordon Rutherford, director of fa
cilities planning and design, said the
department was slightly behind because
of the insurance commission's sug
gested changes. "We had to keep making
changes to satisfy the insurance people."
The University will start taking bids
after specifications are completed, he
said. That process could take another
four to five weeks.
After reviewing the bids, however,
the University could decide the funds
should be diverted to higher priorities,
Rutherford said. "Given the current
budget crisis, it's conceivable the powers
that be would determine there is some
thing more important."
Tuchi said although the Campus Y is
receiving outside funds for the renova
tions, the money will not cover full
costs of the construction. The insurance
commission said if any renovations are
done on the building, the entire project
must be completed to meet the
commission's standards, he said.
Campus Y officials said they were
frustrated with the delays in the reno
vations. They had planned to move to a
temporary location in Chase Hall this
temporary location in Chase Hall this operation, but it had been sidelined.'
answers audit report's
The University remedied some of the
problems by simply assigning respon
sibilities, Jones said.
Jones said the problems the audit
found with the University's financial
affairs were caused partially by the
absence of a vice chancellor for business
and finance. During 1989, the Univer
sity searched for someone to fill the
The report recommended that the
BOT form an audit committee, but BOT
members decided against the proposal.
Instead, State Auditor Edward Renfrew
and Chancellor Paul Hardin agreed to
allow the vice chancellor for business
and finance, several internal auditors
and the chancellor review the yearly
not paying attention to what his credit
card capacity is."
State budget analyst Bruce
Harrington said the University's com
plaints are unfounded.
"I contend that they have enough
funds to pay their utility bills. If they
don't, I don't know why," Harrington
"I really don't see how anybody can
complain about what they've got," he
said. "We've treated Chapel Hill as
fairly as everyone else.
"It seems that the Chapel Hill cam
pus is always a little more vocal than the
Tuchi said UNC was justifiably
outspoken about the state budget pro
cess. "You can expect people to complain
afternoon at Connor Beach to catch up on a little
summer, but were instructed not to be
cause the plans were behind schedule.
"We really feel like we were strung
along. The whole thing was planned to
go through and it didn't," said Campus
Y Co-chairman Richard Harrill.
The moving date for the Campus Y
was changed several times because of
mixed messages from University ad
ministrators. Boulton's office informed the Cam
pus Y about what was happening but
kept changing instructions throughout
the summer, Harrill said.
"The big issue is not the budget,"
Harrill said. "A large part of the money
had already been allocated." Instead,
the problems stemmed from the
University's disorganization and mis
handling of the project, he said.
Boulton said he wanted the Campus
Y to move during the summer so the
group's services would not be disrupted.
The insurance commission's findings
changed his mind, and he decided the
Campus Y should stay in its present
location until the design specifications
were finalized. "We had a good plan in
The audit, which was conducted by
Renfrew, reviewed the University's
1989 fiscal year. The report listed 20
findings and recommendations, which
was an increase from 16 reported last
year. Among the findings and recom
mendations: B UNC should strengthen its internal
controls to ensure the accuracy and
timneliness of its financial reports to the
state; reports for the 1989 fiscal year
contained errors and were often pre
PThe Office of Scholarships and
Student Aid should prevent
See AUDIT, page 2
when they have to work under conditions
of uncertainty and conditions that
change after the fact," Tuchi said. "It is
the most convoluted method one could
ever expect to see."
However, the University should ab
sorb its share of North Carolina's bud
get shock, Tuchi said.
"No amount of hand-wringing or
protestation will change the state's
revenue pattern," he said. "We have to
participate in resolving the difficulties
facing the state. We have to coexist."
The University is examining a num
ber of other options designed to save
money, Tuchi said.
Efforts to encourage conservation of
water and electricity may alleviate some
of the utilities crunch, he said. But full
participation from students and faculty
By STEPHANIE JOHNSTON
Assistant University Editor
North Carolina's Office of Admin
istrative Hearings has placed a re
straining order on the University, a state
purchasing officer and the state pur
chasing contracts office because of an
appeal filed by Classic Food Company
Classic Food Company Services, a
division of Coca-Cola, filed the appeal,
alleging the University improperly
awarded the campus's vending contract
to Marriott Corporation, said Buie
Costen, an attorney with the state at
torney general's office.
"What has happened is the vending
contract was awarded to Marriott, and
Classic Foods filed an appeal and got a
restraining order from the office of ad
ministrative hearings," Costen said.
"Classic Foods has had the contract for
some number of years, (but) Marriott's
proposal was considerably lower."
Marriott estimated it could generate
$5,000 more in profits over a five-year
period than Classic Foods, Costen said.
Chris Derby, director of Carolina
Dining Services, said that Marriott is
engaged in negotiations with Classic
Foods now but that he could not com
ment on the situation. University offi
cials were advised not to comment on
the appeal or the implications of the
Costen said the University awards
vending contracts. The state is not re
quired to approve the choice, although
a state purchasing officer and the state
purchasing contracts office were named
in the restraining order, Costen said.
University officials said they could
not comment on the state purchasing
officer and the state purchasing contracts
office being named in the restraining
Classic Foods officials would only
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if -1 hxbi I f r
x m. .
Workers continue installing chilled-water
the Student Union Tuesday.
is difficult to achieve.
'There is no way to do it short of
hiring people to go around turning off
lights," Tuchi said.
With conservation unlikely to solve
the budget problem entirely, additional
measures may be necessary.
The University may be forced to
"refrain from filling positions," Tuchi
'That's a draconian measure that we
are likely to have to take," he said. "But
there are no alternatives."
More cuts in operating expenditures
are likely, Tuchi said.
"We know that if we don't do any
thing, it's going to be very large next
year," he said. "The passage of time will
define the deficit better and cause us to
take more long-range, drastic action."
has had the
some number of
posal was con
release a prepared statement and referred
all other questions to the University.
Hager Rand, executive vice president
and general manager of DurhamBottling
Company, said, "Our food service and
vending division, Classic Food Com
pany Services, who previously had the
vending contract at UNC, has asked the
State of North Carol i na to re v ie w UNC 's
decision to award the current vending
contract to Marriott."
Marriott Corporation also has the
Carolina Dining Services' contract,
which is separate from the vending
The University did not inform
members of the Food Services Advisory
Committee about the restraining order
and the appeal. The committee only
makes recommendations, so it was not
necessary for administrators to notify
pipes between Davis Library and