TIF Slush Fund Continues

Miller Coors HQ West Loop
Miller Coors HQ West Loop

Chicago’s TIF slush fund is the by far the most corrupt thing about Chicago’s government these days, and Ben Joravsky of the Chicago Reader has been following the story closely:

 

 

But because of loopholes in the state TIF law, the mayor’s pretty much free to spend the money on anything he wants, such as subsidies to corporations in return for unenforced agreements to keep jobs in Chicago. That’s how TIF money ended up subsidizing wealthy corporations setting up shop in the “blighted” communities in and around the Loop.

Ferguson’s July 12 report (available at chicagoinspectorgeneral.org) hones in on the role played by World Business Chicago, an economic development group whose board is appointed by the mayor and includes many of Chicago’s corporate big shots. Among them are Glenn Tilton, who used to be CEO of United Airlines, and Terrence Duffy, chairman of CME Group, formerly known as the Chicago Mercantile Exchange.

WBC’s mission is to convince other corporate big shots to move jobs if not their headquarters to town, which is supposed to make us swell with civic pride—as though persuading, say, MillerCoors to move its corporate headquarters here from Milwaukee and Denver is the corporate equivalent of the Bears beating the Packers.

Anyway, as Ferguson points out, it’s not just that the folks at the WBC call on other corporate hotshots to move to town. It’s that they use handouts from the TIFs as one of the lures.

As Ferguson found, from 2005 to 2010, WBC wrote letters to the city’s TIF overseers, recommending subsidies for 12 corporations, including Accretive Health, ArcelorMittal USA, Block 37, CareerBuilder.com, CME Group, CAN, MillerCoors, NAVTEQ, United Airlines, Willis Group, and Ziegler and Ccompanies.

 

(click here to continue reading Mayor Emanuel does the TIF reform dance | Ben Joravsky on Politics | Chicago Reader.)

Self Portrait with South View

Why do these wealthy corporations need tax payer money to build, especially during these dire economic times? Nobody really has a good answer. In the West Loop, Roundy’s got money from the TIF fund to build an upscale store called Mariano’s Fresh Market, directly across the street from an existing (and recently built) Safeway (Dominick’s), and a few blocks from a proposed Wal-Mart…

Yet just last month Emanuel’s administration signed off on a deal to give $7 million—taken from the Near West TIF district—to a bunch of developers so they can build an upscale grocery store at Monroe and Halsted.

Wow, where do I start?

First of all, the area is hardly blighted—it’s booming by Chicago standards.

Second, it doesn’t need a grocery store—there’s a Dominick’s right across the street.

And third, there are any number of more pressing needs for that $7 million. Every unit of local government is freaking broke—Mayor Emanuel just grimly announced that the city’s deficit is $600 million and counting.

I asked city officials if the developers had substantiated a claim that, but for the TIF, the land could not be developed. I’m still waiting for them to get back to me on that one.

The city says the grocery store will create 200 new jobs. That amounts to a subsidy of $35,000 a job—if we actually get all the jobs. And let’s face it—the city has never done much to monitor job agreements in the past.

I think we’d all be better off if Mayor Emanuel just closed the Near West Side TIF and sent the roughly $54 million it has in reserves back to the city, schools, parks, and county, which were all foolish to give it up in the first place.

(click here to continue reading Mayor Emanuel does the TIF reform dance | Ben Joravsky on Politics | Chicago Reader.)

And to top it off, this site isn’t even a blighted building, up until a few years ago, MB Financial, a mid-sized bank with over $10,000,000,000 in assets, was headquarted in this building. They moved across the street into a newer, sleeker building, but their old location isn’t exactly a shit hole.

News America Buddy Governor Chris Christie

Metropolitan Correction Center Blues

Metropolitan Correction Center Blues

Speaking of the culture of News Corporation, Jim Edwards has been following the News America trials closely for a while now, and reports:

The allegations were first reported by BNET in 2009, and touched upon again by the New York Times today.

In the case, FGI alleged News engaged in a number of anti-competitive practices, including using stolen passwords to illicitly enter its computer system to review or download sales information. George Rebh, the owner of FGI, testified in a New Jersey federal court in 2009 that he had been contacted by Smuckers in January 2004 after the client became curious that News seemed to have confidential information about its business stored on FGI’s password-protected website for advertiser clients. Rebh testified:

We — our IT people looked at our password-protected site to see if there was any access to that site by unauthorized users.

They discovered that beginning in October of 2003 through the time that we discovered this, in January of 2004, in fact, right up to the day before, there had been unauthorized accesses into our system by people utilizing computers registered with an IP address to News America Marketing. IP address is registered to News America Marketing in Connecticut.

… There were 11 separate accesses over that four-month period.

The unauthorized access allowed users to see FGI’s clients’ advertising plans and sales records — crucial information that competitors could use to undercut FGI in negotiations with clients. Rebh testified that was exactly what happened: FGI lost its key account with Safeway supermarkets, and the company dwindled to just 25 employees at the time of the case, Rebh said:

In short, the loss of the Safeway contract marked the beginning of the end of our company.

(click here to continue reading Inside News Corp.’s (Alleged) U.S. Computer-Hacking Scandal | BNET.)

and mentions an interesting fact:

FGI also alerted former U.S. Attorney Chris Christie (now governor of New Jersey) and former U.S. Attorney General Alberto Gonzalez asking for an investigation of the hacking. When the company got no response, it asked former U.S. Sen. Jon Corzine, current U.S. Sen. Frank Lautenberg, and U.S. Rep. Rush Holt to write to Christie and Gonzalez again, asking for an update. (Download the FGI v. News hacking memos here (PDF).) Christie’s former commercial crimes chief, Deborah Gramiccioni  responded that the case was:

…under review by Assistant U.S. Attorneys in our Commercial Crimes Unit. Because the above-references matter may involve fraud, we are also forwarding copies of your letter and the attached information to the Febreal Bureau of Investigation for review.

Nothing came of the probe.

(click here to continue reading Inside News Corp.’s (Alleged) U.S. Computer-Hacking Scandal | BNET.)

Too Many Mistakes
Too Many Mistakes

Even curiouser is that Governor Christie is a favorite of Murdoch’s Fox News, and there have even been reports that the head of Fox News, Roger Ailes, is an advisor to Governor Christie as he considers running for the GOP nomination.

The office of Republican Gov. Chris Christie of New Jersey is claiming that Fox News chairman Roger Ailes is a confidential adviser whose interactions with the governor should remain secret under New Jersey’s executive privilege. Last month, after New York magazine reported that Ailes met with Christie last summer and called him this year to urge him to run for president, Gawker filed a request under New Jersey’s Open Records Act seeking any correspondence between the two men, as well as any records of meetings or phone calls with Ailes from Christie’s schedule or call logs.

Last week we received a rather surprising response: While declining to confirm the existence of any such records, Christie’s office said they “would be exempt from disclosure…based upon the executive privilege and well-settled case law.” In other words, Christie’s staff refused to search for any records—which, given the undisputed reports of a dinner and phone call, almost certainly exist—on the basis that Ailes is a confidential adviser whose comments should be shielded from public scrutiny.

(click here to continue reading Gov. Chris Christie Claims Fox News Chief as Confidential Adviser.)

Rebekah Brooks Resigns From Murdoch Org

Curbside
Curbside

In case you haven’t heard, Rebekah Brooks hasn’t had a good week. First, a newspaper started in 1843 was sacrificed on the alter of her career, and then Rupert Murdoch kicked her to the curb anyway.

In her farewell message, Ms. Brooks said: “At News International we pride ourselves on setting the news agenda for the right reasons

(click here to continue reading Rebekah Brooks Resigns From Murdoch’s British Subsidiary – NYTimes.com.)

Nicely done – no mention of journalistic ethics, or reporting facts, still all about slant, and “setting the agenda”. A Murdoch loyalist until the end.

First Site of Scotland Yard
First Site of Scotland Yard

and The Metropolitan Police are a bit nervous too, as their corruption seems likely to be exposed:

The company’s woes increased on Thursday when yet another former senior editor of The News of the World, now defunct, Neil Wallis, became the ninth person since January to be arrested in the phone-hacking scandal. Mr. Wallis also appears to have unusually close ties to top officers at the Metropolitan Police Service, and worked for them as a public relations consultant last year.

Mr. Wallis’s arrest, while bad news for the company, is doubly worrying for the Metropolitan Police Service. The police are already under attack for failing to adequately pursue the phone-hacking inquiry in 2006, and again for failing to reopen the investigation in light of new evidence in 2009. While Mr. Wallis is not the most important figure yet to be arrested — that would be Mr. Coulson, a former editor of The News of the World who until January was Prime Minister Cameron’s chief spokesman — he is close to Scotland Yard.

After leaving The News of the World in 2009, Mr. Wallis became a media consultant, whereupon he was immediately hired to “provide strategic communication advice” to Scotland Yard officials from October 2009 to September 2010, according to a police spokesman. His firm offered the lowest rate, the spokesman said, explaining how he got the job.

But his ties to the police went back longer. In September 2006, one month after The News of the World’s royal correspondent, Clive Goodman, was arrested on suspicion of phone hacking and the paper Mr. Wallis worked for was supposedly under investigation, Mr. Wallis had dinner with Sir Paul Stephenson, then Scotland Yard’s deputy commissioner, and Dick Fedorcio, its chief spokesman.

Sir Paul, now the police commissioner, said on Thursday that he was “very satisfied with my own integrity.”

More recently, Assistant Commissioner John Yates, another top police official, told a parliamentary committee in March that he could not remember exactly when he last had lunch with Mr. Wallis, but that it “may well” have been in February.

A police spokesman said he did not know the precise date of this engagement. But if it was indeed in February, that meant that it took place after the police had already opened Operation Weeting, the investigation into phone hacking under which Mr. Wallis has now been arrested.

Evening Newspapers at Monument Station

Evening Newspapers at Monument Station

Ken Auletta of The New Yorker adds:

The only surprise in the resignation of Rebekah Brooks is that it took so long. She was the editor of the News of the World when a good deal of hacking was done, when police were paid bribes for documents and news tips. When she left the newsroom, she became the News Corp. executive responsible for overseeing at least one newspaper that continued these practices, as well as others that we may learn more about. And when she testified before Parliament, she offered misleading and contradictory answers. Yet she remained in place. When Rupert Murdoch flew to London last weekend to quarterback his company’s defense, a reporter asked: What’s your foremost concern?

He might have said, protecting my company’s good name. Or getting to the bottom of who was responsible for these dastardly acts. Instead, with Brooks standing beside him, he said: protecting this woman.

Why was Murdoch, who is not known for loyalty, so loyal to Brooks? Because outside of his family, Brooks is only one of two people he is said to treat as a genuine friend. His closest friend is Robert Thomson, editor of the Wall Street Journal and former editor of his London Times. (I wrote about Thomson for The New Yorker.) Although he is three decades younger than Murdoch, he is more of a peer. Brooks has been more of a daughter. And she is treated as a member of the family by many in the Murdoch brood. Letting her leave must have been personally painful.

But with Murdoch, business comes first.

(click here to continue reading News Desk: The Brooks Resignation: Business and Loyalty : The New Yorker.)

Bush Administration Prevented Regulation of Perchlorate In Drinking Water

Mendenhall Glacier Melt Off

Mendenhall Glacier Melt Off

Simply and unequivocally criminal. Disgustingly craven, and a lot more besides. We wrote about this travesty back in November, 2008.

The EPA’s controversial 2008 decision not to regulate a drinking water contaminant long connected to impaired brain development and decreased learning capability in infants had more to do with the interests of the Bush administration than with scientific findings regarding its safety, according to a report (146 page PDF) released Tuesday by a congressional watchdog agency, the LA Times reports.

Perchlorate is a toxin in rocket fuel and fireworks, is present in most states’ drinking water, lettuce and milk, and is found in high concentrations near current and former military bases as a byproduct of weapons testing. The E.P.A. currently says it could be contaminating the public wells supplying anywhere from 5 million to 17 million Americans. The U.S. Government Accountability Office (GAO) was asked to look into the EPA’s evaluation of the known thyroid-disturbant, and found that the path to the no-regulation decision “used a process and scientific analyses that were atypical, lacked transparency, and limited the agency’s independence in developing and communicating scientific findings.”

Instead of the EPA’s usual process—which begins with creating a work group of “professional staff with relevant expertise from across the agency”—the Agency placed a “less inclusive, small group of high-level officials” in charge of the deliberations.

These high-level members included officials who answered directly to the White House, from the Office of Science and Technology Policy, the Department of Energy, the Department of the Interior and the Department of Agriculture. NASA and the Department of Defense were part of the board as well.

Not included in the work group was the Office of Children’s Health Protection, a bureau essentially created for this purpose, despite the EPA’s conclusion of the risk perchlorate poses to pregnant women and children. The chemical can inhibit iodide uptake, causing increased the risk of neurodevelopmental impairment in fetuses of pregnant women, and contribute to developmental delays and decreased learning capability in infants and children, according to the report.

“Everyone who’s paying attention knows that EPA Administrator Stephen Johnson is acutely tuned-in to the political signals coming from the White House – so tuned-in that his conversations with the executive branch have become a form of highly privileged state secret,” Sierra Club Executive Director Carl Pope told NBC in 2008.

 

The GAO report also found significant flaws in the actual testing process. The work group chose to use data from a 2005 National Academy of Sciences report, which was based primarily on the results of a single two-week clinical study which did not include infants or children younger than six years old.

 

(click here to continue reading Bush Administration, Not Science, Prevented Regulation of Toxin In Drinking Water | TPMMuckraker.)

No Dumping - Drains to Creek
No Dumping – Drains to Creek

Luckily, the Obama administration is a huge improvement in this area at least, and reversed this Bush era mistake last February.

Rupert Murdoch and his cozy relationship with power

Damn Tourists
Damn Tourists

More on the News of the World cellphone scandal, and on why Rupert Murdoch isn’t already in jail…

Let’s try a thought experiment. Let’s imagine that BP threw an extravagant party, with oysters and expensive champagne. Let’s imagine that Britain’s most senior politicians were there — including the Prime Minister and his chief spin doctor. And now let’s imagine that BP was the subject of two separate police investigations, that key BP executives had already been arrested, that further such arrests were likely, and that the chief executive was heavily implicated.

Let’s take this mental experiment a stage further: BP’s chief executive had refused to appear before a Commons enquiry, while MPs who sought to call the company to account were claiming to have been threatened. Meanwhile, BP was paying what looked like hush money to silence people it had wronged, thereby preventing embarrassing information entering the public domain.

And now let’s stretch probability way beyond breaking point. Imagine that the government was about to make a hugely controversial ruling on BP’s control over the domestic petroleum market. And that BP had a record of non-payment of British tax. The stench would be overwhelming. There would be outrage in the Sun and the Daily Mail — and rightly so — about Downing Street collusion with criminality. The Sunday Times would have conducted a fearless investigation, and the Times penned a pained leader. In parliament David Cameron would have been torn to shreds.

Instead, until this week there has been almost nothing, save for a lonely campaign by the Guardian. Because the company portrayed above is not BP, but News International, owner of the Times, the Sunday Times, the News of the World and the Sun, approximately one third of the domestic newspaper market. And last week, Jeremy Hunt ruled that Murdoch, who owns a 39 per cent stake in BSkyB, can now buy it outright (save for Sky’s news channel). This consolidates the Australian-born mogul as by far the most significant media magnate in this country, wielding vast political and commercial power.

 

(click here to continue reading What the papers won’t say.)

Parliament Buildings London

Parliament Buildings London

and one last bit:

Perhaps Baldwin, like his former News International colleagues, doesn’t find phone hacking too shocking. Indeed, one of his first actions as Miliband’s spin-doctor was to instruct Labour MPs to go easy on the scandal. In a leaked memo, he ordered them not to link it to the impending takeover decision on BSkyB. But this was to let News International crucially off the hook. For the key question — and it burns deeper than ever in the light of the Milly Dowler revelations — is exactly whether the owner of News International is any longer a ‘fit and proper’ person to occupy such a dominant position in the British media.

This is a question that has almost never been asked. This is partly because of heavy political protection of the kind that was on such vivid display at the Orangery last month. But Murdoch could not have got away with it for so long but for the silence in the British press. The Sunday Mirror is the News of the World’s most direct competitor: one would have expected it to revel in its rival’s problems. Instead it has largely ignored the story — except for an attack on the News of the World on Wednesday — as has Express Newspapers.

The Daily Mail, likewise, has written almost nothing. Paul Dacre, editor-in-chief at Associated Newspapers, is rightly regarded as the greatest newspaper editor of his time. But in this case Fleet Street’s moralist has lost his compass: his failure to engage seriously with the phone-hacking story is a most unfortunate blot on a brilliant career. The Daily Telegraph, for which I write, has done better, but the minimum. Only the Guardian, and belatedly the Independent, have covered the story with flair and integrity.

This should have been one of the great stories of all time. It has almost everything — royalty, police corruption, Downing Street complicity, celebrities by the cartload, Fleet Street at its most evil and disgusting. One day, I guess, it will be turned into a brilliant film, and there will be a compulsive book as well.

The truth is that very few newspapers can declare themselves entirely innocent of buying illegal information from private detectives. A 2006 report by the Information Commissioner gave a snapshot into the affairs of one such ‘detective’, caught in so-called ‘Operation Motorman’. The commissioner’s report found that 305 journalists had been identified ‘as customers driving the illegal trade in confidential personal information’. It named each newspaper group, the number of offences and the number of guilty journalists (see above). But, as the commission observed, coverage of this scandal ‘even in the broadsheets, at the time of publication, was limited’. The same reticence has been seen, until now, over the voicemail-hacking scandal.

By minimising these stories, media groups are coming dangerously close to making a very significant statement: they are essentially part of the same bent system as News International and complicit in its criminality. At heart this is a story about the failure of the British system, which relies on a series of checks and balances to prevent high-level corruption. Each one of them has failed: parliament because MPs feel intimidated by the power of newspapers to expose and destroy them; and opposition, because Ed Miliband lacked the moral imagination to escape the News International mindset — until he was forced to confront it all by the sheer horror of the Milly Dowler episode.

Legal Tender

Legal Tender

and from D.D. Guttenplan of The Nation, a little history:

Rupert Murdoch may have finally gone too far. For decades the billionaire media baron has relentlessly amassed power on three continents. But it is worth recalling that his first move out of his native Australia—and out from under the shadow of his father, newspaper magnate Sir Keith Murdoch—came in 1969, when he snatched a very downmarket British Sunday title, the News of the World, away from Robert Maxwell. (Maxwell’s fraudulent dealings were still unsuspected, but his Czech Jewish origins were held against him by the paper’s editor, who remarked that the News of the World “was—and should remain—as British as roast beef and Yorkshire pudding.”) In considerable decline from its heyday in the 1950s, when it sold over 8 million copies, the paper Murdoch acquired relied on a mix of kiss and tell stories—the News of the World bought Christine Keeler’s account of her involvement in the Profumo Scandal—and “investigations” of London vice dens, with the exposé typically ending with the line “I made my excuses and left.”

But it was still the biggest-selling English language paper in the world, and though Murdoch steered it even deeper into sleaze—earning him the nickname “the Dirty Digger”—the News of the World and its weekday stablemate, the Sun, which he acquired a year later, supplied the steady profits that enabled Murdoch to build his British empire. (In 2010, a terrible year in the newspaper business, the two titles reported a profit of £86 million.) So there was something not just shocking but brutal about James Murdoch’s announcement that “this Sunday will be the last issue” of the 168-year-old paper.

The immediate cause of the paper’s demise was public revulsion in Britain to the news that News of the World reporters had hacked into the mobile phone messages of Milly Dowler, a 13-year-old girl who was abducted on her way home from school in March 2002, but whose body wasn’t discovered for another six months. Guardian reporter Nick Davies’s disclosure that the News of the World had not only listened to messages left by Milly’s frantic friends and family but had deleted messages from her voice mailbox to keep the supply coming—creating false hope for the girl’s family and possibly destroying evidence—sparked a boycott of the paper’s advertisers and widespread denunciation. Prime Minister David Cameron condemned the hacking as “dreadful,” Labour Party leader Ed Miliband called for Rebekah Brooks, a Murdoch executive who was editor of the News of the World when the murdered teenager’s phone was hacked, to resign. The Royal British Legion, the country’s largest veterans’ organization, announced it was cutting its ties with the paper after reports emerged suggesting that the phones of soldiers killed in Iraq and Afghanistan had also been hacked. Even Rupert Murdoch described the mounting scandal as “deplorable and unacceptable.”

 

(click here to continue reading Sky Falling, Murdoch Sacks Hacks. Game Over? | The Nation.)

and for some inexplicable reason, this tidbit made me happy:

There is no doubt that Murdoch has been seriously damaged by all of these disclosures. It has often been said of Murdoch that the only thing he cares about is his share price. Events over the past week wiped some $2.5 billion off the value of News Corporation, his US-based holding company.

Tyson Foods Corporate Criminal

Chickens Being Grilled
Chickens Being Grilled

Don’t you love how corporations want to be accorded the same rights as people in some areas, but not others? Able to donate unlimited cash to lobbyists and their politician lackeys, yet able to wantonly break the law without consequence. Sort of a rigged system, isn’t it?

For instance, Tyson Foods:

The issue of the payments resurfaced in November 2006, and this time, Tyson did what it should have done two years earlier: it retained an outside law firm, Kirkland & Ellis, conducted an internal investigation and, under a government program intended to encourage voluntary disclosure of white-collar crime, turned the results over to the Justice Department and the Securities and Exchange Commission. The government’s investigation ended this February, when Tyson was charged with conspiracy and violating the Foreign Corrupt Practices Act. Tyson agreed to resolve the charges with a deferred prosecution agreement in which it “admits, accepts and acknowledges” the government’s statement of facts, and paid a $4 million criminal penalty. The company paid an additional $1.2 million and settled related S.E.C. charges that it maintained false books and records and lacked the controls to prevent payments to phantom employees and government officials.

But what about those at Tyson responsible for the bribery scheme?

Corporations may have assets and liabilities, but they don’t commit crimes — their officers, executives and employees do. And the 23-page letter agreement between Tyson and the Department of Justice, the criminal information, and the S.E.C.’s public statement of facts all withheld names, identifying the participants only as “senior executive,” “VP International,” “VP Audit” and so on.

It would seem self-evident that if Tyson engaged in a conspiracy and violated the Foreign Corrupt Practices Act, then someone at Tyson did so as well. The statute specifically provides for fines of up to $5 million and a prison term of up to 20 years for individuals, as well as fines of up to $25 million for companies.

I assumed the names were withheld because the investigation was continuing and further charges might be forthcoming. I was wrong.

When I called this week, press officers for both the Justice Department and S.E.C. said the investigation was over and no one would be named or charged. This seems to reflect the belief that the deferred prosecution agreement, penalty and S.E.C. settlement largely achieved the government’s objectives, which were to stop the illegal conduct at Tyson and deter future instances. The decision not to pursue cases against individuals seems also to reflect budgetary constraints at both agencies (cases involving foreign witnesses can be especially costly) and, for the Justice Department, the burden in a criminal case of proving guilt beyond a reasonable doubt. But surely bribery, not to mention other forms of corporate wrongdoing, would be more effectively deterred if someone was actually held accountable for it.

(click here to continue reading Tyson Foods Agrees It Made Illegal Payments, but No One Was Charged – NYTimes.com.)

I think Tyson shouldn’t be able to evade penalty for their crimes, no matter what their and the SEC’s excuse.

The Daley Legacy Is Corruption

Everything Must Go

Not to say that Mayor Daley did nothing positive for the City of Chicago, because he did some good things too, but at best his legacy is mixed. Too many examples of greed and corruption, like:

For years, City Hall maintained that Mayor Richard M. Daley’s son, Patrick Daley, had no financial stake in the deal that brought wireless Internet service to city-owned O’Hare Airport and Midway Airport.

But it turns out that the younger Daley still reaped a windfall of $708,999 when Concourse Communications was sold in 2006, less than a year after the Chicago company signed the multimillion-dollar Wi-Fi contract with his father’s administration, company documents obtained by the Chicago Sun-Times show.

Concourse disclosed its investors to the city, as required. Patrick Daley wasn’t one of them.

But he still had a stake in Concourse’s success, the company documents show, and profited as a result when the company was sold after winning the city contract.

Daley’s role was as a middleman who lined up investors for Concourse. Among them: M. Blair Hull, the millionaire commodities trader who mounted an unsuccessful campaign for the Democratic Party’s nomination for U.S. Senate in 2004.

On June 27, 2006, nine months after it signed the potentially lucrative city contract for airport Wi-Fi service in Chicago, Concourse was sold — at a 33 percent profit — to Boingo Wireless Inc. for $45 million.

Three days later, Patrick Daley got his first payment as a result of the sale, the documents show — for $164,789.

Over the next 17 months, with Daley now serving in the U.S. Army, he got four more payments resulting from the sale, totaling $544,210, the documents show, for a total of $708,999.

Shortly after Patrick Daley received the last of those payments, his father’s City Hall press secretary, Jacquelyn Heard, told a Sun-Times reporter in a Dec. 3, 2007, interview, that Patrick Daley “has no financial interest with the Wi-Fi contract at O’Hare.”

(click here to continue reading Former Mayor Daley’s son profited after airport Wi-Fi deal – Chicago Sun-Times.)

So next time you read a hagiography of Mayor Daley, remember this aspect too.

Daley and Duff, BFF

State Street Renovation 1996

Not that surprising, really. Only would become surprising if anything ever came of it, especially since Mayor Daley is no longer mayor.

In the annals of Daley administration scandals, the name Duff still ranks high.

The politically connected Duff family — campaign supporters of Mayor Daley — won about $100 million in city business, in part through what prosecutors said were bogus claims that they deserved breaks that are set aside for women-owned businesses. Those claims unraveled as James M. Duff pleaded guilty in 2005 to fraud and racketeering, among 33 federal charges.

Daley knew the Duffs, went to their parties, benefitted from their campaign fund-raisers — but downplayed his ties to the family, which, during his tenure, got city cleanup and janitorial work from City Hall at Taste of Chicago, O’Hare Airport and the Harold Washington Library Center,among other lucrative city business.

For anyone keeping score, newly released FBI files show that agents who were keeping tabs on the late John F. “Jack” Duff Jr. — the family patriarch who was an ex-con, disgraced union boss and self-described pal of the late Chicago mob boss Anthony Accardo — had a source who told them “it was common knowledge that Jack Duff Jr. and Mayor Daley were close friends and that Jack Duff Jr. had direct access to the mayor.”

The FBI files on Jack Duff, who died in 2008 at 82, were released to the Better Government Association in response to a federal Freedom of Information Act request. That law allows the release of certain law enforcement files after a person’s death.

(click here to continue reading Mayor Daley’s name turns up in FBI files on embezzler John F. Duff Jr. – Chicago Sun-Times.)

 

USDA suggests Monsanto police itself

Bounty from @FreshPicks

Lovely. What’s next? Asking ExxonMobile to conduct its own environmental studies for the EPA? Asking G.E. to do its own tax audits for the IRS? We expected better than this from Obama’s administration.

The U.S. Food and Drug Administration introduced a pilot project in the Federal Register this month which would allow biotech seed companies to perform their own environmental impact studies of novel seed varieties before deregulation. The USDA’s move seems to be a response to a decision last August by Federal Judge Jeffrey White which banned the planting of genetically modified sugar beets until an environmental study assessed the impact of commercial cultivation. White ruled that the USDA’s approval of the beets violated the National Environmental Policy Act.

Proponents of the USDA’s project believe the decision will make the biotech industry less vulnerable to legal challenges and speed the registration process of new GE crops. “A big deterrent to future lawsuits would be if the USDA were to win some of them,” said Karen Batra, director of communications at Biotechnology Industry Organization, to Capital Press. “The more information the department has, the better case they can make.”

Most recently The Center for Food Safety challenged the USDA’s unregulated approval of GE-alfalfa saying the decision puts organic and conventional farmers at risk. The case is pending.

Organic advocates believe the USDA’s pilot will slow what they believe to be an already ineffective process and encourage more legal challenges.

“There’s virtually no chance, in the current political climate, that the idea of expanding the role of biotech is going to speed up approval,” said Chuck Benbrook, chief scientist for The Organic Center.  “The fact of the matter is there are many good reasons not to trust science from Monsanto.  Almost inevitably the first assessments carried out under this pilot program will be challenged in court—probably successfully.”

Bill Freese, science policy analyst for the Center for Food Safety, said the USDA’s proposal would make an already poor process worse.

“This decision would give us additional incentive to challenge a seed up for deregulation, subject to other factors,” he said. “We might actually challenge the process itself. This decision seems to go against some pretty basic scientific integrity guidelines. Letting a company do its own assessment is a pretty obvious conflict of interest.”

 

(click here to continue reading USDA suggests Monsanto do its own environmental impact studies | Farming content from New Hope 360.)

Frank McCourt and the Demise of the Dodgers

Baseball and Beer

Buzz Bissinger is not going to be invited to Frank McCourt’s Christmas party this year.

There is simply no way to say with any degree of artfulness so I won’t even try: Los Angeles Dodgers’ owner Frank McCourt is a vile piece of shit who not only ruined what was once the classiest franchise in all of sports but should also face legal consequences if allegations are true that he did reportedly not pay any taxes on $105 million he siphoned from the Dodgers’ for his own personal use. Co-owners Frank and Jamie McCourt have recently divorced, causing the team to suffer.

Ruthless. Litigious. Nasty. Dishonest. That’s just a small smattering of the descriptions that the media have applied to McCourt, prima facie proof that all professional sports teams, like the Green Bay Packers, should be community-owned so fans don’t have to witness the destruction of an institution they love.

Some are saying they are shocked by Wednesday’s news of Major League Baseball Commissioner Bud Selig appointing a trustee to take over operations of the Dodgers. Given McCourt’s track record, I have no idea why. Perhaps the most vigorous defense in his favor comes from Tommy Lasorda, a profane clown when he managed the Dodgers and even more of a profane clown on the talk circuit. Lasorda says McCourt really loves the Dodgers, which is like saying that Hannibal Lecter really loved his victims before he ate their livers.

(click here to continue reading Frank McCourt and the Demise of the Dodgers – The Daily Beast.)

I strongly support the idea of more teams owned by the community, like the Green Bay Packers. The owners cry poverty whenever a new stadium is required, but when they want to move franchises to another city a few years later, nobody seems to be able to stop them.

And, for the record, I wouldn’t want to be invited to Frank McCourt’s Christmas party either, he seems like a real jerk, especially if you read Buzz Bissinger’s whole rant.

links for 2011-04-14

  • That pill-popping, boy-crazy nincompoop Ayn Rand has got a lot to answer for. Indeed, it’s not too much of a stretch to say that we owe at least part of the recent economic crisis to her and her philosophy of Objectivism, since former Fed chief Alan Greenspan was a lifelong disciple of both. The two first met in the ’50s. Back then, a gang of acolytes, calling themselves the Collective, used to gather at Rand’s apartment on East 36th Street every Saturday night so they could tell each other how smart they all were. Along came Greenspan one evening, shy and somber.

  • America has two national budgets, one official, one unofficial. The official budget is public record and hotly debated: Money comes in as taxes and goes out as jet fighters, DEA agents, wheat subsidies and Medicare, plus pensions and bennies for that great untamed socialist menace called a unionized public-sector workforce that Republicans are always complaining about. According to popular legend, we’re broke and in so much debt that 40 years from now our granddaughters will still be hooking on weekends to pay the medical bills of this year’s retirees from the IRS, the SEC and the Department of Energy.

    Why Isn’t Wall Street in Jail?

    Most Americans know about that budget. What they don’t know is that there is another budget of roughly equal heft, traditionally maintained in complete secrecy. After the financial crash of 2008, it grew to monstrous dimensions, as the government attempted to unfreeze the credit markets by handing out trillions to banks and hedge funds. And thanks to a whole galaxy of obscure, acronym-laden bailout programs, it eventually rivaled the “official” budget in size — a huge roaring river of cash flowing out of the Federal Reserve to destinations neither chosen by the president nor reviewed by Congress, but instead handed out by fiat by unelected Fed officials using a seemingly nonsensical and apparently unknowable methodology.

  • The budget plan that Budget Committee Chair Rep. Paul Ryan (R-WI) has put forward for the House Republicans is truly stunning. It takes the war on America’s middle class not to the next level but about three levels down the road.

    There’s something we should start with, though, when we think about this budget. And that’s where we are now. Mark Sumner points us to this graph:

    That’s the deficit, and that big orange stripe, the one getting wider by the year, is how much of the deficit the Bush tax cuts are creating.

    8c52104u.jpg

  • (tags: privacy browsers )
  • Apple Inc. has added a do-not-track privacy tool to a test version of its latest Web browser for keeping customers’ online activities from being monitored by marketers.

    The tool is included within the latest test release of Lion, a version of Apple’s Mac OS X operating system that is currently available only to developers. The final version of the operating system is scheduled to be released to the public this summer. Mentions of the do-not-track feature in Apple’s Safari browser began to appear recently in online discussion forums and on Twitter.

    The move by the Cupertino, Calif., company leaves Google Inc. as the only major browser provider that hasn’t yet committed to supporting a do-no-track capability in its browser, called Chrome. Microsoft Corp. and Mozilla Corp. both offer do-not-track features in their latest browsers.

  • (tags: law )
  • The Other Writers: “We did all of that writing for free, and now that you made a bunch of money, we’re entitled to some of it!”

    AOLHuffPo: “LOL!”

    1496-2.jpg

NBC is never critical of General Electric

Just in case you thought Fox was the only corporate media organization with a credibility problem, NBC has, once again, omitted criticizing its parent, GE. NBC pretends GE only does good things on earth, distributes puppies and the like, and isn’t one of the worst corporations on the planet. Of course, facts are troubling things…

Electricity comes from other planets

It’s the kind of accountability journalism that makes readers raise an eyebrow, if it doesn’t raise their blood pressure first. General Electric Co., reported the New York Times last week, earned $14.2 billion in worldwide profits last year, including $5.1 billion in the United States — and paid exactly zero dollars in federal taxes.

The front-page story drew widespread commentary in newspapers and on many Web sites. ABC News and Fox News, among others, were all over it.

But the story was conspicuously absent from the reportage of one news organization: NBC.

During its Friday broadcast, “NBC Nightly News With Brian Williams” had no time to mention that America’s largest corporation had essentially avoided paying federal taxes in 2010. Or its Saturday, Sunday or Monday broadcasts, either.

Did NBC’s silence have anything to do with the fact that one of its parent companies is General Electric?

NBC News representatives say that it didn’t. “This was a straightforward editorial decision, the kind we make daily around here,” said Lauren Kapp, spokeswoman for NBC News. Kapp declined to discuss how NBC decides what’s news or, in this case, what isn’t.

But to others, NBC’s silence looks like something between a lapse and a coverup. The satirical “Daily Show” on Monday noted that “Nightly News” had time on Friday to squeeze in a story about the Oxford English Dictionary adding such terms as “OMG” and “muffin top,” but didn’t bother with the GE story.

Ignoring stories about its parent company’s activities is “part of a troubling pattern” for NBC News, said Peter Hart, a director at Fairness & Accuracy in Reporting (FAIR), a liberal media watchdog group that often documents instances of corporate interference in news. He cited a series of GE-related stories that NBC’s news division has underplayed over the years, from safety issues in GE-designed nuclear power plants to the dumping of hazardous chemicals into New York’s Hudson River by GE-owned plants.

What’s more, Hart notes, NBC News has covered corporate tax-avoidance stories before — that is, when they didn’t involve GE. All three networks’ news divisions, according to Hart, have become reliable sources of publicity for their parents’ other corporate interests, doing news stories about upcoming sporting events or new TV shows carried on their own networks.

(click here to continue reading On NBC, the missing story about parent company General Electric – The Washington Post.)

 Solve Danger

Coal Tar Toxic, EPA Indifferent

Everything Is Political

If only there was some regulatory agency that protected the interests of people and the environment…

Michael Hawthorne of the Trib writes:

If a company dumped the black goop behind a factory, it would violate all sorts of environmental laws and face an expensive hazardous-waste cleanup.

But playgrounds, parking lots and driveways in many communities are coated every spring and summer with coal tar, a toxic byproduct of steelmaking that contains high levels of chemicals linked to cancer and other health problems.

Nearly two decades after industry pressured the U.S. Environmental Protection Agency to exempt coal tar-based pavement sealants from anti-pollution laws, a growing number of government and academic studies are questioning the safety of the widely used products. Research shows that the tar steadily wears off and crumbles into contaminated dust that is tracked into houses and washed into lakes.

In Lake in the Hills, a fast-growing McHenry County suburb about 50 miles northwest of Chicago, researchers from the U.S. Geological Survey found that driveway dust was contaminated with extremely high levels of benzo(a)pyrene, one of the most toxic chemicals in coal tar. The amount was 5,300 times higher than the level that triggers an EPA Superfund cleanup at polluted industrial sites.

(click to continue reading New doubts cast on safety of common driveway sealant – Chicago Tribune.)

…because profits for industry always seem to trump petty health concerns as far as the EPA is concerned:

Despite the EPA’s long-standing worries about the chemicals, industry successfully lobbied to exempt coal tar pavement sealants when the agency tightened hazardous-waste rules for coke ovens during the early 1990s. The little-noticed change made it easier for manufacturers to keep selling the products, which can contain as much as 30 percent coal tar by weight.

Agency spokesmen declined to make anyone available to discuss the exemption, but said in a statement there are no plans to revise it. “EPA regulations allow for the legitimate recycling of coal tar under certain specified parameters,” the statement said.

Scientists started to track the movement of coal tar sealants into homes and lakes about a decade ago, after pinpointing the source of alarmingly high levels of PAHs in Barton Springs, a popular swimming hole in Austin, the Texas capital. Tom Bashara, an environmental investigator, noticed that pollution hotspots in a creek flowing into the pool were near parking lots coated with coal tar.

In Austin, the scientists also found that dust inside apartments next to parking lots coated with coal tar was 25 times more contaminated than the dust in units next to lots coated with asphalt or left unsealed. Young children could be the most vulnerable to exposure, the researchers concluded, because they play on or near floors where dust collects.

Sick kids? Who cares? Got to ensure quarterly profit margins increase…

Side note, home testing sounds fairly easy:

Q. Is there a test to check if I have coal tar sealant on my driveway?

A. A definitive test is expensive, but officials in Austin, Texas, came up with an alternative. Use a screwdriver or razor blade to scrape off a small amount of pavement sealant and place it in a glass vial filled with mineral spirits. Seal the vial, shake it and allow it to sit for 30 minutes. If the liquid is dark and coffee-colored, the sealant likely is asphalt-based. If it looks like amber-colored tea and remains more clear, assume it’s coal tar-based.

The only definitive way to tell is by checking the CAS number on the product’s material safety data sheet, usually available online or from contractors. The CAS number for coal tar is 65996-93-2.

Corruption and Gale Norton

We've Got it Good in Evanston

Disgusting, and released late on Friday afternoon, of course, where all such disappointing news gets dumped to be ignored. Plus ça change…

The Justice Department has closed an ethics inquiry into former Interior Secretary Gale Norton, who was accused of using her position to steer lucrative oil leases to Royal Dutch Shell, where she now works. The Interior Department’s acting inspector general, Mary Kendall, who conducted the investigation, said Friday that she found no evidence to “conclusively determine” whether conflict-of-interest laws were violated either before or after Ms. Norton joined Shell. Ms. Kendall said that the Interior Department appeared to give Shell preferential treatment in at least two cases, but that she could not link them to Ms. Norton.

(click to continue reading Inquiry Into Former Interior Secretary Ends – NYTimes.com.)

Some backstory, and more backstory if you need a refresher.

Egg Inspectors Failed to Raise Alarms

Surprise, surprise, another federal regulatory agency more concerned with the industry it is supposed to oversee than with the public it is allegedly supposed to protect and serve. If the USDA was a person, it could be jailed for crimes, but…

You Are Beautiful with Amish Meat

U.S. Department of Agriculture experts found growing sanitary problems including bugs and overflowing trash earlier this year on the Iowa farm at the center of the national egg recall, but didn’t notify health authorities, according to government documents and officials.

The problems laid out in USDA daily sanitation reports viewed by The Wall Street Journal underscore the regulatory gaps that may have contributed to delays in discovering salmonella contamination. Tainted eggs sickened at least 1,470 Americans.

Wright County Egg of Galt, Iowa, recalled 380 million eggs in mid-August, but people likely began getting ill around May 1, according to the Centers for Disease Control and Prevention.

Robert Arnold said he reported problems at Wright County Egg when he worked there, but was ignored.

The USDA was the only federal body with a regular presence at Wright, but it says it wasn’t responsible for safety. USDA graders were at a Wright egg-packing plant seven days a week to oversee designations such as “Grade A” on egg cartons.

The Food and Drug Administration, which has overall responsibility for egg safety but didn’t inspect the Wright facility until this August, says it never heard from the USDA about problems such as dirt and mold. The two agencies have a formal understanding about the USDA giving the FDA notice over sanitary issues, but the USDA declined to give details.

The USDA said it didn’t give notice because “the conditions at the egg plant packing facilities were routine.”

(click to continue reading Egg Inspectors Failed to Raise Alarms – WSJ.com.)

Routine. Yikes. That makes me feel like eating 50 eggs!


“Cool Hand Luke” (Warner Home Video)