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Add us on GoogleBill Gates ignored multiple warnings from employees at the Gates Foundation about the reputational risks of associating with convicted sex offender Jeffrey Epstein, an independent external review led by WilmerHale has concluded.
However, it determined there was no evidence that Epstein was paid by the foundation, nor that it or any of its associates participated in, or had knowledge of, Epstein’s sex trafficking operations or criminal activities.
The Gates Foundation concluded the five-month look at any potential ties with Epstein this week.The report was focused exclusively on institutional dealings with Epstein and did not examine any personal relationship or communications between Gates and Epstein outside of foundation-related business. Gates has repeatedly denied participating in any of the crimes Epstein was accused of.
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The first meeting
Epstein was introduced to Gates and other foundation personnel in 2011, after two employees shared sensitive information and forwarded emails (a violation of foundation policy). The foundation meetings with the billionaire involved two matters: the potential creation of a donor-advised fund (“DAF”) and possible engagement with a nonprofit organization, the International Peace Institute, which the foundation subsequently provided a grant to support the eradication of polio.
All totaled, the review found there were roughly 30 meetings between Epstein and ten foundation leaders and staff, including Gates.
“Based on interviews and a review of available foundation records, WilmerHale found no evidence that these meetings were unrelated to philanthropy or involved illegal conduct,” the report reads.
The review says the foundation ended its relationship with Epstein in late 2014 after a meeting in New York in which it “became clear to Mr. Gates and foundation staff that Epstein had misrepresented the potential donors’ knowledge of and willingness to commit to the DAF.”
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Moving forward
To strengthen governance and internal processes moving forward, the Gates Foundation’s Board approved several actions following the report:
- It will create a centralized vetting process for brokers, donor advisors, co-funders and individuals who facilitate funding partnerships and who are connected to the foundation through central leaders.
- There will be an escalation process for organizational risks on projects introduced by the Chair, a member of the governing board or other members of the executive leadership team.
- Personnel who hold dual roles at the foundation or any company associated with the Chair will have their roles clarified and a clearer scope of authority laid out.
- Conflict of interest policies will be enhanced.
- Policies and training related to the handling of sensitive and/or confidential internal foundation records will be enhanced.
“The review prompted hard questions and we got straight answers,” said Gates Foundation board member Tom Tierney in a statement. “The trust of employees, partners, and the communities the foundation serves is fundamental to its mission.”
The fallout from the association with Epstein is still being felt at the Gates Foundation. In April, the organization announced plans to cut up to 500 jobs in the coming years, representing a culling of as much as 20% of its staff. And Warren Buffett, who in 2006 said he was “irrevocably committing” to make gifts of Berkshire shares to the foundation every year “throughout [his] lifetime” has ended all donations to the organization.
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Chris Morris is a veteran journalist with more than 35 years of experience at many of the internet's biggest news outlets. In addition to his activities as a writer, reporter and editor, Chris is also a frequent panel moderator and speaker at major conferences, including CES and South by Southwest.
