An unsecured loan to a California company may offer some clue as to why Tracy Taylor, president and CEO of the Kansas Technology Enterprise Corp., isn’t more forthcoming when asked for details about KTEC activities.

It has come to light, in an annual report filed with the federal Securities and Exchange Commission last year, that KTEC loaned Urigen, a San Francisco-based pharmaceutical company, $100,000 during the fiscal year that ended in June 2008. The company has only tenuous ties to Kansas or any economic development efforts here, but it had one thing working in its favor: Tracy Taylor was on its board of directors.

Not only was he on the board, but he was listed on the report as the chairman of the board, who received $37,500 in fees and reimbursement for his services on the board.

But wait, the founder and chief financial officer of Urigen say that isn’t right. Taylor actually received no money for serving on the board; the $37,500 was what was owed to him but it wasn’t paid.

Incorrect information in a filing with a federal regulatory agency may be the least of this firm’s problems. The report also included an audit that “raised substantial doubt about our ability to continue as a going concern” because of “recurring operating losses and need for additional financing.”

It doesn’t sound like Kansas taxpayers should expect much return on their investment.

Regardless of whether Taylor was paid by Urigen, the choice to invest even a relatively small amount of Kansas money in a firm whose board he chaired raises serious ethical questions. And where was the KTEC board when this was taking place? A consultant hired to evaluate KTEC reported last month that several board members complained that they often were asked to vote on issues before receiving complete information on the proposals. Was the Urigen “investment” such an issue? Board members have a responsibility to make sure they are fully informed about any action before them. It is their responsibility as much as Taylor’s.

This latest news about Urigen raises serious questions about KTEC and even more serious questions about its CEO. Hopefully, those questions will receive the full attention of Kansas legislators as they consider whether to reinstate the KTEC funding that the governor cut out of the state budget.