In the News

Chicago Sun-Times, May 21, 2010

It was the elephant in the room.

The RTA board met Thursday, but there was no discussion of the recent discovery of a half-million-dollar fraud against Metra committed by late executive director Phil Pagano.

The RTA has financial oversight of Metra, but no one would even say whether the RTA would audit Metra.

RTA executive director Stephen Schlickman declined any comment about the Pagano investigation.

"The RTA takes the allegations regarding financial improprieties at Metra very seriously," said RTA board member Patrick Durante, chairman of the RTA's audit committee.

"Our agency is continuing to look into the situation, but due to an ongoing investigation being conducted by the U.S. attorney's office, and at the office's request, we are unable to comment further at this time."

Meanwhile, state Sen. Susan Garrett (D-Lake Forest) has proposed legislation to require Metra to hire an independent inspector general. She also has sent a letter to Metra Chairwoman Carole Doris requesting that the board hire an outside auditing firm to scrutinize all expenses related to the executive director's office.

At a meeting that revealed the results of an outside investigation into Pagano last Friday, the Metra board hired outside legal counsel, appointed chief internal auditor Eric Fernandez as acting inspector general and established two board committees to review financial practices.

Garrett called Metra's actions so far "baby steps."

"Somebody needs to go in there and clean house," she said.

Metra expects to hire a permanent independent inspector general as soon as next Wednesday, according to Metra spokeswoman Judy Pardonnet.

Pagano killed himself May 7, the day the Metra board was expected to hear the results of an investigation into his activities. An investigation found that since 1999, Pagano had taken at least $475,000 on top of his regular salary for unused vacation days, even if he used the vacation days.