Alabama’s two-year-college system has given more than $135-million in bond business since 1999 to an investment-banking firm linked to the brother of a system vice chancellor.

The Birmingham News reported this morning that the bond business—which represents more than two-thirds of all bonds issued by the system in the last seven years—generated more than $1.1-million in fees for a firm in which the brother of Debra Dahl, the system’s vice chancellor for finance, is executive vice president.

The work went to the firm, Merchant Capital, after Ms. Dahl’s office took over all bond issues by two-year colleges in the state in 1998, according to the News.

The revelation came on the heels of a series of news-media reports that have uncovered the cozy relationship between the two-year colleges and businesses in which college leaders’ family members have a financial stake (The Chronicle, May 22 and June 14).

The State Board of Education this month fired the system’s chancellor, Roy W. Johnson, in part because of the accusations of nepotism in the system and because of a high-profile state and federal investigation in which a state legislator and former college employee pleaded guilty to fraud (The Chronicle, July 10 and July 13).

Just yesterday, the News reported on another allegation—of sweet business deals related to the construction of Mr. Johnson’s house (The Chronicle, July 24).