FOR IMMEDIATE RELEASE

CONTACT:
Jay Stewart, Executive Director (312) 427-8330
Dan Sprehe, Chief Investigator (312) 427-8330

Investigation finds Peterson's political interest still relies on CHA Contractors

CHA Contractors Gave 61% of Itemized Contributions

CHICAGO, ILLINOIS — In a follow-up to an April 2005 investigation, the Better Government Association (BGA) and the Resident’s Journal have found that the 17th Ward Democratic Organization continues to receive a suspiciously high amount of its funding from Chicago Housing Authority (CHA) contractors. In 2005 the 17th Ward Democratic Organization raised $70,445 in itemized contributions, according to data from the Illinois Board of Elections. Of that, $42,850, or approximately 61% of these contributions, came from CHA contractors, their owners, and employees.

Last spring, the BGA and the Resident’s Journal released an extensive analysis of the fundraising patterns of the 17th Ward Democratic Organization. The investigation found that CHA contractors had contributed approximately $250,000 to the 17th Ward Democratic Organization from 2001 through 2004, about 37% of all the ward organization’s contributions in that time period.

These findings raise questions, particularly because there are no CHA facilities in the 17th Ward, and there appear to be virtually no ties between the ward and those businesses that might generally encourage their political support. The only connection between the 17th Ward and CHA contractors is Terry Peterson, former 17th Ward alderman and currently the Chief Executive Officer of the CHA.

In the last three full years of his aldermanic tenure before moving to the CHA (1996 through 1999), Peterson received only $23,600 in contributions from CHA contractors. A short while later in 2001, the long-dormant 17th Ward Democratic Organization was restarted, and numerous contributions began arriving from companies who had business with the CHA.

“The citizens of Chicago are reeling from one corruption scandal to the other,” said BGA Executive Director Jay Stewart. “A common theme in all of those scandals is ‘pay to play’ schemes, where jobs or contracts are handed out in exchange for campaign contributions, bribes or coerced political work. Our findings in regard to the 17th Ward Democratic Organization are very worrisome given this environment. I am had pressed to believe that CHA contractors, with no logical connection to the 17th Ward, simply gave so much money because of a genuine interest in Democratic politics in that part of the City.”

Overall Decline

The latest BGA and Residents Journal analysis shows that the 17th Ward Democratic Organization’s fundraising did take a hit after the April 2005 investigation was released in the news media, including the Residents Journal, Chicago Sun-Times and Chicago Public Radio. In 2005 the ward organization’s total of $70,445 was a sharp drop from 2004, when the same committee took in $249,018.33 in itemized contributions.

That nearly 72% decline is in sharp contrast to the significant increases the organization had been seeing in years prior. Since 2001, overall contributions to 17th Ward Democrats were increasing by more than 15% per year.

Further, CHA contractors gave $42,850 in 2005, 54% less 2004 and 48% less than in 2004. However, the margin between donors who represent CHA contractors and other contributors widened significantly.

On the premise that perhaps the CHA contractors are simply interested in Chicago politics, the BGA looked at how much money the CHA contractors gave to the several similar organizations, including the clout-heavy 11th Ward Democratic Organization (the Daley family’s home ward) and the 25th Ward Democratic Organization (home ward of powerful alderman Danny Solis and the location of some CHA facilities). In 2005 the CHA contractors gave just over $10,000 to the 11th Ward Democratic Organization, about 6% of all funds raised. The 25th Ward Organization saw $17,296 from those businesses, which makes only 5% of all funds raised in 2005.

Clearly, those figures are shadowed significantly by the 17th Ward Democratic Organization’s $42,850 from contractors - 61% of all the money it raised that year.

“Even if you assume CHA contractors as a group are political junkies, it is hard to explain why they favor the 17th Ward over all the other Wards, especially the Mayor’s home ward and a ward with a powerful alderman with CHA facilities in his district” said Stewart.

“These types of findings only reinforce the public’s cynicism that public resources are for sale to the highest bidder. Before Peterson took over the CHA they had a mild interest in the 17th Ward. Since Peterson’s rise to the top of the CHA they have flooded the 17th Ward with political donations,” Stewart said. “Both Peterson and the 17th Ward Democratic Organization insist nothing is wrong but this is a similar to the pattern of contributions and contracts that that BGA has observed countless times in the past that has lead to scandal and disaster.”

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