As
it completes its 15th year, the administration of Mayor Rich Daley has
suffered the usual array of TADs -- temporary adverse developments --
that afflict any long-term governmental regime.
Yet
Daley remains personally untouched and politically unscathed by any of
the misdeeds of city officials or aldermen. If scandal is defined as
an act that shocks and offends the moral feelings of the community and
leads to disgrace, then no scandal has attached to the mayor or to any
major officials in his administration.
Daley
prides himself on his management ability and on his knowledge of the
city's labyrinthine bureaucracy, which is greased with a $4.8 billion
annual budget. Daley raised almost $6 million in his 2003 re-election
campaign, and he runs one of the most effective political machines in
the nation.
Unlike
his father, Richard J. Daley, the current mayor doesn't need a
political machine to crush his opposition. That's because there is no
opposition -- at least not to Daley. The mayor uses the city's vast
resources, coupled with that of Cook County's government, which he
controls through his brother, County Board Finance Committee chairman
John Daley, to co-opt his opposition. Those upon whom he showers ward
projects and patronage have no reason to oppose him. In fact, they
fervently want to keep him in power, and they work for him and
bankroll him. The city is the mayor's "machine."
So
Daley's professed ignorance of abuses in the city's once-obscure
"Hired Truck" program must be greeted with skepticism. The
city spent $40 million on the program since 1996, paying selected
truck owners (or small companies) between $29 and $94 per hour to sit
at city work sites all day and haul away debris from sewer
reconstruction or curb repairs. This is a classic example of Daley's
policy to spread around the city's wealth -- and to reward his
supporters.
Not
coincidentally, according to news reports, the mayor and other
pro-Daley Democratic politicians received $800,000 in campaign
donations since 1996 from Hired Truck participants. More than a
quarter of the contractors are from Daley's Bridgeport neighborhood.
John Daley sold insurance to the owners of the three biggest fleets,
and he got $50,000 in contributions since 1996 from Hired Truck firms.
Sounds
like a TAD, except for the fact that the program's supervisor, Angelo
Torres, was indicted in February by the U.S. attorney's office for
allegedly taking $3,800 in bribes to steer $50,000 in business to a
truck owner. Torres is a former gang member, and he was sponsored for
his job by Daley's Hispanic Democratic Organization. Twenty-six of the
165 Hired Truck contractors have since been suspended. The amount of
Torres' bribe is puny, and he is the only city official charged to
date. It is likely that he will enter a plea, so there won't be any
trial publicity. Unless there are more indictments, this TAD will soon
evaporate, joining the plethora of other Daley Administration TADs
that never evolved into a scandal.
Here's
a list of other now-forgotten TADS, as compiled from press reports:
*The
Duff family, long-time Daley contributors, organized Windy City
Maintenance, fronted it as female-owned, and got the janitorial
contract at O'Hare Airport and the Washington Library, generating more
than $100 million in billings. In reality, the company wasn't
woman-owned. The firm was indicted in 2003 by the U.S. attorney's
office on charges of racketeering, conspiracy, mail fraud and money
laundering.
*O'Hare
Airport: The construction company of Patrick Harbour, a Daley fund
raiser and business partner of city trucking contractor Michael Tadin,
has garnered more than $130 million in airport contracts since Daley
took office, most of them no-bid. Harbour's company, AOR, has gotten
90 percent of O'Hare construction work since 1989. In 2001 the Daley
Administration awarded a $1 billion contract to T-6 Partners, a
development team, to build a new airport terminal. T-6's lobbyist and
attorney was Victor Reyes, a former Daley aide and head of Daley's
Hispanic Democratic Organization.
*Grabur
International, a firm consisting of two friends of the mayor's wife,
Maggie, took advantage of the city's "minority business"
program to generate $1.5 million in profits in just 3 years. The lease
of airport concessionaire W.H. Smith was due to expire in 1996, and
for some reason, Smith felt compelled to "partner" with
them. Smith's lease was renewed, and Grabur gets 30 percent of Smith's
airport profits through 2006.
*John
Daley brokers insurance through Near North Insurance, a firm charged
as a criminal operation in 2003 by the U.S. attorney's office and
whose president, Michael Segal, is under indictment for alleged fraud.
Daley's client list, according to the Better Government Association,
is a "who's who" of O'Hare contractors. Daley earns $400,000
annually in insurance commissions. Another brother, lawyer Michael,
gets paid $180,000 per year as a consultant by Salomon Smith Barney,
the investment firm which floats the bonds that generate billions of
dollars for city public works projects.
*EDS,
a Texas company, won the city's $40 million parking ticket collection
contract. The company's lobbyist was Joe Cari, a partner in the law
firm of Bill Daley, another brother.
*
Marina Cartage Co., owned by long-time Daley pal Tadin, gets the bulk
of the city's truck-hauling contracts. In 1989 Tadin bought a 29-acre
South Side parcel for $509,000, which he then leased to the city as an
auto pound for $25,000 a month. He has profited enormously. He also
bought another parcel for $85,000 and leased that to the city for salt
storage, and reaped another huge profit.
It
will be recalled that Tadin played a central role in the downfall of
Daley's City Council floor leader, Alderman Patrick Huels (11th), in
1997. Tadin loaned Huels' security company $1.25 million, just months
after Huels helped engineer a $1.1 million city subsidy for Tadin's
company to build a new trucking headquarters. Huels failed to list the
loan on his 1996 ethics statement, and he subsequently resigned as
alderman.
Since
1973, 25 sitting Chicago aldermen, one city clerk and one city
treasurer have been convicted on corruption charges. Nine aldermen
went down during the reign of Richard J. Daley, and 10 during his
son's tenure. During the 1990s, the feds' "Operation Silver
Shovel" scored 18 convictions for bribe-taking, including a city
water commissioner, "Operation Haunted Hall" scored 31
convictions for ghost payrolling, and "Operation Gambat"
scored eight convictions for bribery on zoning and court cases. But
since the venality attached itself primarily to the City Council and
to a few lower-level city officials, the Daley Administration suffered
no harm.
In
a city where politics is a business, favoritism is not deemed
reprehensible. The mayor's propensity to steer city business to
personal and political pals is just "politics as usual," and
the voting public will tolerate it as long as some value is received
for money paid. But it is evident that a clique of Daley insiders,
including some of his family, are profiting mightily from city
contracts.
Despite
his garbled syntax and hot-tempered tirades, Daley has evolved into an
icon, much like his father in the 1970s. Chicagoans view him as an
able and trustworthy administrator, and they do not perceive him as
using his power to enrich himself. They believe that he truly cares
about the city and that he has not grown lax as mayor. And there is a
great and growing residue of affection for him.
The
city has not stagnated under his administration. On the "big
four" issues -- taxes, crime, education and services -- Daley has
performed admirably.
In
sum, Daley seems to have concocted the perfect governing formula:
taking care of his friends and family, but taking care of the public's
needs just a bit better. Unless TADs begin erupting monthly, or a
major scandal engulfs a top city commissioner close to the mayor,
Daley's opposition-free reign will continue until he chooses to
retire.