The Land of Milk and Money

Chicago runs the biggest public school system in Illinois and buys more milk for low-income students than anyone else – yet, curiously, pays much more.

Turns out one of the prime beneficiaries is a dairy owned by the McMahon family, which has deep ties to Ald. Ed Burke and other political figures.

But that’s not the McMahons’ only interest. They also have electrical and plumbing companies that do work for governments in Chicago and the suburbs. Altogether, the family’s firms have been paid more than $162 million by the Board of Education, the City of Chicago, Cook County and other public agencies since 2005 – despite allegations that certain family members engaged in minority-contracting fraud.

The Chicago Sun-Times and Better Government Association put together a three-part series on this family, their connections and possible implications to taxpayers.

MARCH 24/25, 2012 DAY ONE: Milk Money: Clout-Heavy Family Reaps $162 Million In Government Work The milk business has been very good to the McMahons, who for decades have run a dairy that’s flourished at the public trough. But they own other companies that also have made big bucks off local government.   Read more MARCH 26, 2012 DAY TWO: Was McMahon Company A Front? McMahon-owned Windy City Electric, which has been paid $30.6 million by City Hall since 2005, is accused of operating as a phony woman-owned enterprise to get a leg up on public contracts. The firm could be banned from getting future work.   Read more   MARCH 27, 2012 DAY THREE: Burke, Other Pols Collect Big Campaign Donations From Contracting Family Having made millions on government contracts for selling milk, and providing electrical and plumbing services, the McMahons and their affiliates give back to politicians – to the tune of more than $1 million.   Read more MARCH 28, 2012   FOLLOW-UP: Rahm Moves to Ban McMahon Electric Company From Future City Work Chicago Mayor Rahm Emanuel proposes barring Windy City Electric from future contracts because it allegedly operated fraudulently as woman-owned, a designation that provides a boost in securing government work. Read more APRIL 6, 2012   FOLLOW-UP: Chicago Schools Investigating Politically Tied Milk Contractor The Chicago Board of Education’s inspector general is investigating the school system’s largest milk-delivery company, McMahon Food Corp., which recently lost its certification as a woman-owned business. A Chicago Sun-Times/Better Government Association investigation last month found that the school system is paying more for milk than many suburban districts that are a fraction of Chicago’s size. Read more