Isn't all fundraising about "who you know"?

The New York Times reported today that one county in Tennessee is pretty fed up with their government grant making based on "who you know".

According to the times: "Earlier this month, the community services director resigned after the Knoxville News Sentinel reported her office had dispensed thousands of dollars to nonprofit organizations to which she had personal ties."

OK, so it's tainted money but it's getting the job done, isn't it? That's a question I believe the county residents should also be asking as they question the distribution of funds in this way. And what ever happened to relationship fundraising? Isn't the theory that you give to those you trust can get the job done? Maybe the county residents are over-reacting, at least on this count? I would like to see the results from these grants. And that's what the county residents should want to see before they move their employees out the door. Relationship grantmaking is most frustrating to those who don't have the relationship, and rightly so, 'cause it's not always fair. Good projects can lose out. But relationship grantmaking can also make for successful grants. Isn't this why we structure nonprofit boards with "who's connected". Or is the whole system just not right?