Mayor Emanuel Proposes New Corruption Ordinance
Acting on recommendations from Chicago’s, Inspector General, Joseph Ferguson, Mayor Rahm Emanuel proposed to the City Council, a new ordinance that mandates all City contractors report corrupt or unlawful activity, expanding current reporting requirements already in place.
“This initiative will reduce the opportunity for fraud and ensure that contractors are meeting the same obligations to protect the residents of Chicago that are required of city workers,” said Mayor Emanuel. “This is a key reform and I am thankful to the Inspector General for this recommendation.”
Anyone familiar with Chicago politics are likely aware of its long corruption history and that Chicago was recently named the most corrupt city in America, according to a study by the University of Illinois at Chicago and the University of Illinois’ Institute of Government and Public Affairs. Illinois is listed as the third most corrupt state in that study.
The report cites federal data showing since 1976, a total of 1,828 elected officials, appointees, government employees and a few private individuals have been convicted of public corruption in Illinois –an average of 51 per year.
Since 1973, 31 more aldermen have been convicted of corruption, according to the report. Approximately 100 aldermen have served since then, which is a conviction rate of about one-third. In 1973 and 1974, four aldermen were convicted of bribery, income tax evasion and mail fraud in a scandal involving zoning changes.
In the 1980s, three aldermen pleaded guilty or were found guilty in Operation Incubator, a major FBI investigation into Chicago corruption. Convictions included bribery, racketeering, extortion, mail fraud and tax evasion. Less than 10 years later, seven more aldermen were convicted as part of Operation Silver Shovel, another major FBI investigation into corruption in Chicago in the 1990s. Between 1996 and 1999 those seven were convicted of bribery, money laundering, fraud and tax evasion.
Local politicians indicted more recently include former Illinois Gov. Rod Blagojevich who is currently serving a 14 year sentence on 18 corruption counts and former Cook County Commissioner William Beavers who was convicted for tax evasion.
Additionally, former congressman, Jesse Jackson Jr. was recently sentenced to 30 months for illegally spending $750,000 from his campaign fund as his wife, former alderman, Sandi Jackson, was sentenced to one year failing to report $600,000 in income that she and her husband earned from 2005 to 2011.
This past summer saw a slew of resignations play out at Chicago's transit agencies, forcing out seven members from the boards of Metra, the Chicago Transit Authority and the Regional Transportation Authority in a short time span as a result of allegations of patronage hiring, contract kick-backs and hush money, claims made by ousted Metra CEO, Alex Clifford against Metra's former Chairman Brad O'Halloran and board member, Larry Huggins.
The, report authored in part by former alderman, Dick Simpson, who’s now a professor at UIC states there are patterns to these crimes.
The convicted governors and 26 of the aldermen were guilty of bribery, extortion, conspiracy, or tax fraud involving schemes to extract bribes from builders, developers, business owners or those seeking to do business with the city or state.
The bribe-payers, the report states, either assumed or were told that payment was necessary to receive zoning changes, building permits or similar city or state action. In the case of Rod Blagojevich, an attempt was made to extract payment or campaign donations in exchange for appointment to a United States Senate seat.
While Blagojevich represents the most egregious case, according to the report, at the heart of most convictions is a payoff for something that is a sweetheart contract or a law or permit necessary to do business, the main pattern of corruption in the city and the state for over 150 years.
There may be some hope for Chicago yet. Earlier this year, nine aldermen formed the Progressive Reform Coalition with a mission to reform City Hall and include Alds. Robert Fioretti (2nd), Leslie Hairston (5th), Roderick Sawyer (6th), Toni Foulkes (15th) Ricardo Munoz (22nd), Scott Waguespack (32nd), Nick Sposato (36th), John Arena (45th) and Ameya Pawar (47th).
The Mayor’s recently proposed ordinance will be incorporated as an explicit term in all future City contracts, as a way to ensure that contractors are aware of their duty to report, and act as partners in fighting corruption.
Violation of the ordinance may be punishable by termination of city contracts held by the contractor.
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