Let's put an end to the speculation - TDF Community Blog

Ideally, we would have preferred to avoid this post. However, the articles and comments published in response to Collabora’s and Michael Meeks’ biased posts compel us to provide this background information on the events that led to the current situation. Unfortunately, we have to start from the very beginning, but we’ll try to keep it brief. The launch of the LibreOffice project and The Document Foundation was handled with great enthusiasm by the founding group. They were driven by a noble goal, but also by a bit of healthy recklessness. After all, it was impossible to imagine what would happen after September 28, 2010, the date of the announcement. At the time, nobody could imagine that the companies that had supported OpenOffice.org until then would create a project to kill LibreOffice. Also, if the project were to be successful, it would require resources greater than those available, and above all, a deep management experience. Fortunately, the project grew quite rapidly. However, the founders’ different backgrounds and opinions were at the same time the reason for some bold decisions – many of which right – as well as a few mistakes, which are the root cause of some of the current

TDF Community Blog
For those of us with zero context, what's the story here?

Based on the article:

Some founders/directors kept using money from the foundation to pay their own private companies to get work done.

This is highly irregular: you can’t manage funds that aren’t yours and use those funds to buy from a company which gives you profit.

Legal council warned the of this irregularity, and nothing was made to change the status quo during years.