DAYTON DAILY NEWS                   Copyright (c) 1995, Dayton Newspapers Inc.DATE: Tuesday, March 28, 1995                TAG: 9503280090EDITION: CITY           SECTION: NEWS        PAGE: 1A SOURCE: By Mark Fisher DAYTON DAILY NEWS                 MISMANAGEMENT CLAIMED AS WSU SUSPENDS DEAN   Wright State University placed Fred Gies, dean of the College of Education and Human Services, on administrative leave Monday while it investigates charges of mismanagement and potential conflicts of interest.   A ``personal services contract'' that Gies attempted to enter into with theDayton City Schools through a local consortium of colleges is among the potential conflicts under scrutiny, WSU officials said.   Dayton Schools Superintendent James Williams - who has been paid $12,000 a year by WSU's College of Education since 1991 to serve as a guest lecturer - said Gies approached him four weeks ago proposing a contract for the dean to provide consulting services to the school district. Williams forwarded the proposal to school district attorneys, who refused to approve the agreement.   WSU said it was looking into three other issues:   * Possible misuse of university resources to support a professional journal, The Record in Educational Leadership , that Gies owns.   * Potential unethical transactions with a community college in the British Virgin Islands, where WSU's education school offers a program.   * Employing a family member in the WSU education college.   Gies said he had hired an attorney and could not comment. Gies has served as dean of WSU's education college since 1987 and is on paid administrative leave for spring quarter.   Gies' attorney, Lawrence Greger, said the accusations against the dean ``are not supported or supportable.''   Greger said WSU President Harley Flack had given Gies the option of resigning or being placed on administrative leave while the university investigated the allegations.   ``Dr. Gies has no reason to resign,'' Greger said.   Williams said he took Gies' proposed contract to school district attorneys for review about three weeks ago, and they concluded the proposed agreement between the school district and the Dayton Area Higher Education Consortium did not provide sufficient specifics on what services Gies would perform. The proposed agreement called for Gies to provide consultation on magnet schools, in-service training, staff development, testing and external funding sources.   They also concluded the contract might be subject to challenge because the services were not put out for public bidding, Williams said. The proposed agreement did not specify the amount to be paid to the education consortium orexplain what portion would have gone to Gies for his services.   Gies' proposal came a few months after he spoke with Williams about more than tripling the $12,000 a year Williams was receiving, the superintendent said. Williams said Gies told him he'd be asked to lecture in the college's program in the British Virgin Islands for the increased pay. Williams said he became wary of the arrangement when he found out WSU President Flack was not aware of the pay boost.   Williams said he did not cash the checks for the larger sums that he began receiving in January - about $3,666 a month, up from about $1,000 a month - and instead turned the checks over to WSU officials.   WSU officials said they informed the Ohio Attorney General's office of the allegations on March 6, and the attorney general contacted the Ohio Ethics Commission. The accounting firm of Deloitte and Touche, which serves as the university's financial auditor, has been hired to assist WSU in reviewing the College of Education's financial transactions, WSU officials said.LENGTH: Medium:   71 LINESSUBJ: SUSPENSION      INVESTIGATION      COLLEGE OFFICIALSNA: FRED GIES    WRIGHT STATE UNIVERSITYAT: MISMANAGEMENT    ENHANCER: REF5