(MintPress) – Chicago Mayor Rahm Emanuel’s recent push to extend the existing traffic camera network in the city has been halted in light of improprieties conducted by a contractor in regard to bidding for the project. Redflex Traffic Systems Inc. admitted last Friday to spending $2.03 million to secure its contract with the city of Chicago.
While the contract with Redflex was signed by the city in 2003 — prior to Emanuel’s administration — recent revelations indicate that key allies to Emanuel were connected to Redflex has focused the spotlight on City Hall.
One such ally, Greg Goldner — a campaign financier for the mayor, was instrumental in getting Emanuel elected both to Congress and to Chicago’s City Hall. Once the mayor took office, Goldner continued to serve as a consultant to the mayor, helping to recruit community leaders for Emanuel’s school reforms. Goldner’s firm, Resolute Consulting LLC, was hired by Redflex Traffic Systems Inc. — an Australian-based motion camera manufacturer — to help promote the company nationwide.
Goldner states that this connection is coincidental. “The fact is you guys are going to write your story, and you know, it’s legitimate,” Goldner told the Chicago Tribune in 2012. “It’s a legitimate news story … I can’t dispute it.”
Since 2003, Chicago has collected more than $300 million in traffic camera fees, based on Redflex’s cameras. Mayor Emanuel has set expectations of up to $30 million in revenue next year from the expansion of the speed camera network. Half of the city is now marked to receive cameras that could identify speeders in school and park “safety zones” and assess fines as high as $100. Testing of the expanded system was scheduled for next year.
Emanuel has gone on the record attesting that the speed camera network has reduced traffic deaths since they were installed. However, independent research does not suggest this and the administration has yet to release the underlying research to prove its conclusions.
In response to its admission of bribery, RedFlex has announced the resignations of its president, Karen Finley; chief financial officer, Sean Nolen; and senior lawyer, Andrejs Bunkse. In addition, Redflex’s corporate parents have announced the institution of a set of sweeping reforms to repair the company’s reputation and the resignation of its Chairman of the Board of Directors Max Findlay and Board Member Ian Davis.
As a result of the termination of the contract with Redflex in response to this scandal, Chicago will claim ownership of all Redflex cameras installed in city limits. This will amount to a $11.3 million loss for the company.
An outside investigator for the company, David Hoffman — formerly inspector general for the city — discovered a suspicious pattern of funds paid to a Chicago consultant to funnel money to John Bills, the former managing deputy commissioner of the city’s Transportation Department, who was in charge of the Redflex contract since its beginnings in 2003. This arrangement was first exposed by a whistleblower at Redflex.
Bills and the consultant have both refused to cooperate with investigations into this case. However, bribery charges are likely to be considered by law enforcement.
The bribery scheme took placed during a four-year period starting in 2007, in which $1.57 million of the consultant’s fee was paid. In addition, Bills was treated to 17 all-expenses paid trips. Most of the expenses for this was paid by Redflex’s former vice president, who was fired in February for mishandling the Chicago account.
Despite the president of the company knowing about the bribery scheme with the city, he and other company officials lied about the extent of the scandal to Mayor Rahm Emanuel’s administration until recently.
Bills resigned from his post with the city in the summer of 2012 to take a part-time post with the Cook County Employees Appeals Board.
Redflex is currently barred from doing business with the city of Chicago. Chicago was previously Redflex’s biggest contract.