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Getting nervous?

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The governor appears to be bending over backwards to try to avoid any problems with his proposed sale of student loan assets. And that means the pals go under the bus.

A financial consulting firm withdrew Wednesday from a pending deal to advise the state on the possible sale of its student loan portfolio, one day after questions were raised about a potential conflict of interest.

Scott Balice Strategies removed itself from the deal after the Tribune asked about its ties to Conlon Public Strategies. Conlon registered in January as a lobbyist for Sallie Mae, a company interested in buying at least part of the state’s $3.5 billion loan portfolio.

Also Wednesday, the Illinois Student Assistance Commission, the state’s non-profit student-loan agency, killed another pending deal with a law firm because it had hired a lobbyist with close ties to the governor.

State officials said they were concerned about the appearance of influential people getting deals related to the controversial proposal to sell the state’s loans.

Gov. Rod Blagojevich said his chief of staff has instructed state officials to “recognize political realities” when choosing private firms on the loan deal and to try to “remove any potential excuse that anybody can have to vote against the ISAC plan.”

While Scott Balice and Conlon share an office suite on North Wacker Drive, Scott Balice’s president said Wednesday the two companies currently have no business ties. Kevin Conlon owned equity in Scott Balice when the company first got under way about three years ago but has since sold his interest, according to Lois Scott, the company’s president.

posted by Rich Miller
Thursday, Mar 2, 06 @ 8:27 am

Comments

  1. That’s a real shame. Dean Balice and Lois Scott are both able and talented individuals with an enormous amount of experience between them. Once again, the governor folds like a cheap suit and somebody else pays for it.

    Comment by Stavros Popodopolis Thursday, Mar 2, 06 @ 8:30 am

  2. I’m sure Dean and Lois have tons of other opportunities to make $$$$$$$$$, even off the taxpayers.

    In the meantime, in Illinois’ unbelievably corrupt political climate, even the slightest gubernatorial concession to the appearance of impropriety gets headlines.

    What a great state.

    Comment by Cassandra Thursday, Mar 2, 06 @ 8:44 am

  3. Hey Stavros,
    If he didn’t cut them loose you would be the first one whining about it. The governor will not tolerate even the appearance of impropriety from anyone associated with him whether it be friends, family members, whatever.
    It is unfortunate sometimes but that is the political enviroment, fostered by guys like you and others on this blog, that we have to deal with nowadays.

    Comment by Bill Thursday, Mar 2, 06 @ 8:47 am

  4. People would give him the benefit of the doubt on deals like this if he didn’t have so many campaign contributors on state boards and commissions.

    Blago is the one who raised the “ethics” bar in this state - don’t blame the bloggers - look in the mirror Bill.

    Comment by Goodbye Napoleon Thursday, Mar 2, 06 @ 9:02 am

  5. The problem in this example is that the firms who stand to gain from the sale of the student loans also help the GOMB to develop fiscal policies.

    These folks all have access to director Filan. They collectively consult on a revenue strategy and then position themselves to benefit from the plan. Pretty nice set-up. This has happened before, and if not illegal, it sure raises ethical concerns.

    Comment by Budget Watcher Thursday, Mar 2, 06 @ 9:15 am

  6. Bill if you are that unhappy why do you keep coming here.This Gov. is in trouble the African-Americans, the Jewish people ,he promised to change pay for play and it is blowing back in his face.He gave a 1 hour State of the State address, which most has already proven to be untrue, and only moved up a couple of points in the polls.They are starting to grab straws and I would say that someone thinks his campaign is in trouble.

    Comment by DOWNSTATE Thursday, Mar 2, 06 @ 9:27 am

  7. Budget Watcher - well said, you’re exactly right. Filan has stated as much publicly too.

    Comment by Goodbye Napoleon Thursday, Mar 2, 06 @ 10:09 am

  8. Bill,

    On the subject of Rod’s ethics, you’re like a blind man without a cane in a parking lot.

    He cuts loose honorable people like Scott and Balice to avoid “the appearance of impropriety” and yet fosters genuine conflicts of interest on a regular basis. I mean did you even notice that the firm still standing (Morgan Stanley) uses Rod’s campaign spokesman as their lobbyist. Isn’t that a conflict? Oh, and that firm is probably going to be both advising on the deal and bidding for some of the portfolio. Now there’s a nice little conflict.

    All that happened hear is that Rod threw a couple of good people under the bus (to quote Rich) because they rent office space from one of the potential bidder’s lobbyists. It was easy for Rod to do it because they DIDN’T have the kind of clout that protects his good buddies Tony Rezko and Chris Kelly.

    The real corruption in this Administration remains and it stinks. This was classic Rod B.S.

    Comment by ChicagoCynic Thursday, Mar 2, 06 @ 5:24 pm

  9. Chicago cynic i agree with wholeheartedly. Lois and Dean are honorable, ethical, and competent.

    Comment by deconstructing circe Thursday, Mar 2, 06 @ 5:40 pm

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