Dear Friends ~

Wednesday morning, I attended a bill signing ceremony, codifying legislation, of which I was the chief sponsor, to create the office of an independent inspector general at the Toll Highway Authority. Minutes later, I held a Senate State Government and Veterans Affairs Committee to address the issues of transparency, accountability and oversight at Metra. One of the principal issues was the importance of having an independent inspector general overseeing our transit authorities to actively investigate cases of fraud, abuse, and mismanagement.

I want to share with you a couple of articles, printed in the Chicago Tribune concerning the Metra hearing and the Tollway inspector general legislation, as well as the audio to an interview I gave for the Eight Forty-Eight segment for WBEZ Chicago Public Radio.

As always, I welcome your thoughts and comments on this or other issues of importance to you.

Sincerely,

Eight Forty-Eight, July 28, 2010

Since former Metra CEO Phil Pagano committed suicide earlier this year amidst allegations of financial misconduct, more questions about the agency’s financial dealings have emerged. Today, State Senator Susan Garrett and other lawmakers plan to dig into those questions at a special committee hearing on Metra’s finances. She tells us more.

To listen to the interview, Click Here or copy and paste the following link: http://www.wbez.org/Content.aspx?audioID=43451

Chicago Tribune, July 29, 2010

Independent watchdog needed at Metra, officials say
But appointment power spurs disagreement
By Richard Wronski

Acknowledging that lax oversight allowed former Executive Director Phil Pagano to abuse his authority and award himself $475,000 in vacation pay, Metra officials and others agreed Wednesday that the agency needs an inspector general.

But there is disagreement over who should appoint such a watchdog to ensure that the post can independently investigate in-house corruption.

Metra board members should not make the appointment, state Sen. Susan Garrett, D-Lake Forest, said at a legislative hearing looking into the causes and effects of the Pagano scandal. Garrett and other lawmakers said they were frustrated by the abuses and want to ensure they don't recur.

"People are desperate for Metra to take a stand and say, 'We are going to make some changes, and we're going to do it the right way,'" Garrett said.

Garrett backs legislation similar to a measure signed earlier Wednesday by Gov. Pat Quinn. That law creates an independent inspector general to investigate allegations of waste, fraud and misconduct at the Illinois Tollway. Under the new law, Quinn will make that appointment with the consent of the Senate.

Her bill to do the same for Metra was defeated in May, after Metra lobbied against it, Garrett said.

David Hoffman, former inspector general for the city of Chicago, said Metra did nothing to correct abuses uncovered in 2002 when former board member Donald Udstuen pleaded guilty to tax fraud for taking payoffs.

"The exorbitant benefits being received by some of the top officials must have been obvious to others at Metra for some time and would certainly have been obvious if an independent inspector general had been examining Metra's affairs consistently," Hoffman said.

Metra Chairwoman Carole Doris told legislators that the agency took corrective action after the Pagano abuses were discovered and is working to hire a permanent inspector general.

"We rapidly took steps to reform this agency and usher in the new practices and procedures being used in the public and private sector today to increase accountability and prevent fraud," Doris said.

But an exasperated Doris also blamed the major accounting firms that Metra has paid "hundreds of thousands" over the years for not uncovering the abuses.

Metra hired the security firm headed by former Chicago police Superintendent Terry Hillard as temporary internal watchdog, and the firm has already launched several investigations, Doris said.

State Sen. Terry Link, D-Waukegan, renewed his call for Metra's board of directors to resign. He called Pagano "the cancer of Metra" and said he should have been fired long ago.

"When you talk to some of these board members privately, they'll tell you they knew Pagano was a problem," Link said. "He was running [Metra] like it was his private little club."

Chicago Tribune, July 28, 2010

New law gives Illinois tollway tougher watchdog
By Deanna Dellandi(AP)

The Illinois State Toll Highway Authority got a tougher watchdog Wednesday to combat its reputation as a "politically connected patronage haven."

Gov. Pat Quinn signed a new law that creates an independent inspector general's office. He has 60 days to name someone to the post that comes with a five-year appointment and subpoena power to investigate wrongdoing.

"The tollway is being transformed from a politically connected patronage haven for insiders to a well-run, well-respected agency that provides efficiencies and ethical standards that will benefit all taxpayers," said state Sen. Susan Garrett, a Democrat from Lake Forest.

The tollway was subpoenaed last year by federal authorities asking about contractors with ties to former Gov. Rod Blagojevich. Lawmakers removed Blagojevich from office last year after he was charged with scheming to sell President Barack Obama's old Senate seat and for illegally pressuring donors for campaign contributions. Blagojevich has pleaded not guilty, and jurors began deliberating his fate Wednesday after a nearly two-month trial.

During the trial, one witness said Blagojevich wanted fundraising help from a road-builder, who was hoping Blagojevich would expand a tollway construction project.

In 2005, an Associated Press analysis of state records showed tollway consultants who had donated to Blagojevich had received no-bid contracts.

Garrett praised the tollway's board chairwoman Paula Wolff for helping to clean up an agency that "once subscribed to backroom, not boardroom standards."

The agency's former internal watchdog resigned last August after Wolff and two other Quinn appointees came onboard.

Former FBI agent Jim Wagner has been the agency's watchdog since January, working as head of investigations.

Quinn didn't say whether he would slide Wagner into the new job. Any appointment Quinn makes must be confirmed by the state Senate.

"I think it's very, very important that in Illinois we have a tollway system that's efficient and modern, safe and most of all honest," Quinn said.

Tollway executive director Kristi Lafleur, who was appointed by Quinn in April, said steps have been taken to improve transparency and accountability at the tollway, including a construction tracker online that shows contract awards.

Lafleur said the new inspector general's office would "add integrity" and make sure all decisions are "above board and above reproach."

Illinois' tollways cover 286 miles that span 12 counties in northern Illinois.