Florida A&M University ‘s president has resigned amid backlash over the school’s failure to properly vet a donor’s multimillion-dollar donation, which has since been put on hold.
Larry Robinson submitted his resignation last week. The news follows scrutiny from state officials over a slew of underperforming programs at the school, which have become part of a political plan to change the future of higher education in the state, The Associated Press reported.
During an emergency FAMU Foundation Board meeting on May 15 , Robinson announced the school would not move forward on the $237 million donation until they review its stock values. The gift, which would have been the largest private donation in the history of HBCUs in higher education, was donated by Texas hemp farmer Gregory Gerami, an unfamiliar 30-year-old CEO of Batterson Farms Corp.
“W ith regards to the gift and the processing of it … We’ve already decided that it is in our best interest to put that on pause, ” Robinson said, according to the Tallahassee Democrat , noting he has reached out to other board members to inform them about the university’s decision.
The donation was initially a surprise announcement at a commencement ceremony in May, where Robinson and several school officials were on stage alongside Gerami and posed with the $237 million check. While the funds would have been beneficial, some board trustee members expressed concern about the donor’s generosity, particularly after he proposed that the school sign a nondisclosure agreement as part of the deal.
Gerami was a key speaker at the ceremony and told an audience of graduates and their families that “ the money is in the bank, ” per the Tallahassee Democrat. But the outlet reported that instead, there were “ 14 million shares of stock of intrinsic value “ with a schedule to convert it to cash over 10 years.
Robinson took responsibility for failing to adequately vet the donor and the funds, emphasizing his commitment to assisting FAMU and its 137-year legacy.
“I saw in this unprecedented gift the potential to serve our students and our athletic programs in ways unimaginable at that time,” Robinson told trustee board members in the May meeting, per AP. “I wanted it to be real and ignored the warning signs along the way.”
Gerami had several discussions with various school officials about his interest in helping the school. He wanted to top a record-breaking $100 million donation to Spelman College made by a billionaire couple from Michigan, and he settled on the proposed amount with the help of others and after assessing FAMU’s program needs. However, according to some background digging from the school, the stock valuation could be anything between $0 and $300 million, based on how much a buyer is willing to pay.
Robinson served as president of the university for seven years. He plans to take a yearlong sabbatical and return to the school as a service professor in the School of the Environment, The New York Times reported. Shawnta Friday-Stroud, the university’s vice president for University Advancement and executive director of the FAMU Foundation, also stepped down and will return to her previous position as dean of the School of Business and Industry.
Essence reported that FAMU will hold a board meeting on July 23 to finalize Robinson’s resignation and search for his replacement.
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