Edit: Semanko Loan Questionable

The large and lingering loans Norm Semanko owe to his employer are legal. But when that’s the best that can be said about the practice, you’ve got problems. Semanko’s employer — the nonprofit and taxpayer-supported Idaho Water Users Association — should not be financing mortgages and home improvement projects for Semanko, its executive director. It’s an inappropriate way to spend the taxpayers’ money. And it’s a practice that is increasingly falling out of favor. Publicly traded companies can no longer bankroll executive loans, under a 2002 federal law passed in response to the Enron scandal. Other states have extended this ban to include nonprofit organizations, an example Idaho should follow. To be fair to the water users association and Semanko, their loan arrangement predates the regulatory-reform movement/ Idaho Statesman . More here.

Question: What do you make of Semanko’s explanations for this loan?