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Reform and renewal - Bad timing edition

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Illinois

* As if things weren’t bad enough already for Gov. Blagojevich, what with the session in ruins and the future of his ambitious health insurance plan in serious doubt, the feds added a cherry on top yesterday afternoon…

A former top official in Gov. Blagojevich’s administration was indicted Thursday for allegedly using his state post in a loan-fraud scheme that already ensnared gubernatorial fund-raiser Tony Rezko.

While executive director of the Illinois Finance Authority, Ali D. Ata is accused of signing a letter bearing the state agency’s name to help Rezko fraudulently secure $10 million in loans.

Federal authorities say Ata, 55, of Lemont, signed the letter at Rezko’s request to make it appear an investor had won partial state backing for a deal to acquire two groups of Rezko’s Papa John’s pizza restaurants in Chicago and Milwaukee.

* Ata was also a significant campaign contributor…

A longtime Rezko friend and business associate, he has contributed $65,000 to Gov. Rod Blagojevich’s campaign fund

* His position at the board was quite important. He was an integral prt of the governor’s big plan to reinvent government, but his legacy was mixed, to say the least. The Trib has more…

Ata was selected as the first executive director of the Illinois Finance Authority, an agency Blagojevich created by combining five statewide bonding authorities into one. The finance authority issues taxable and tax-exempt bonds and makes loans for businesses, non-profit corporations, agriculture and local government units across the state.

In 2005, Illinois Auditor General William Holland’s office said the finance authority did not have a comprehensive accounting system when it opened its doors, resulting in “numerous accounting and financial reporting problems.”

* Curry has more…

Ata left after that audit and the agency was about to give him a sweetheart consulting contract of more than $150,000 when the Chicago Sun-Times revealed the scheme and caused it to be withdrawn.

If I were a reporter or federal investigator I’d be looking very closely at those 2004 actions by the new agency. With Ata as executive director and Tony Rezko’s next door neighbor in Wilmette… David Gustman, as board chairman, the lights were all blinking red for millions of dollars in insider deals.

posted by Rich Miller
Friday, Jun 1, 07 @ 10:24 am

Comments

Let’s FOI those phone records right away.
Should be the end of the Blaggofest any day now

Comment by Manw/ThePlan Friday, Jun 1, 07 @ 10:49 am
Perhaps rather than having made a deal with the devil, Blago is under a curse?

Comment by Leigh Friday, Jun 1, 07 @ 10:53 am
Blago isn’t under a curse; he IS the curse. Ata and Rezko (and countless unnamed others) are just the tools of his malfeasance and corruption. When Ryan starts to look good by comparison you know you have a real problem on your hands.

Comment by Lincoln Log Friday, Jun 1, 07 @ 11:04 am
I just can’t help but wonder what could have happened if we elected a real reformer in 2002.

There are moments in government when timing points to breakthroughs. In 2002, after George Ryan, we had a moment when a new political party, bringing in a new governor, who ran as a reformer, could have passed legislation and make remarkable upgrades to government administration.

Instead we got Blagojevich. He did worst than nothing - he let the dogs of politics run loose, closed his eyes and held out his hands for his take of campaign dough.

He didn’t even try.

I don’t care how many nanny state programs he passes, how many maps, road signs, tollway booths or rheams of stationary he put his name on - he will be remembered as the guy who used gubernatorial corruption as the tool to get into office, and continue that corruption.

George Ryan promised to be a horse trader - a guy who knew how to get things done. The revelation that he was a crook is wrong. But when Blagojevich promised us he would fix corruption, and stop business as usual, he set his own bar, then slithered under it.

I hope Fitzgerald and our court systems show him no mercy.

Comment by VanillaMan Friday, Jun 1, 07 @ 11:43 am
More indictment!!! The sooner, the better.

Comment by i d Friday, Jun 1, 07 @ 11:56 am
It’s probably a stretch to call a bonding authority director a “top official” in an administration.

In most cases they might well never have a face to face meeting with the Governor after being appointed, and perhaps none before being appointed (the same would probably hold true with a number of cabinet members). They are high ranking administrators, but hardly top administration officials.

Looking back, thinking about the number of announced appointments that had to be withdrawn, the number that didn’t turn out well (though most not as serious as this problem), it looks to me like they didn’t get off to a good start on vetting people properly. Maybe that shouldn’t be surprising. I don’t know who was responsible for it, but they didn’t have access to a lot of people with that kind of experience. But I think it is important to keep in mind that it’s not the kind of function a Governor (or Governor-elect) would perform himself.

Comment by steve schnorf Friday, Jun 1, 07 @ 11:58 am
Blago is the official tool. He has been used by Rezko and gang more often than the urinals at Wrigley field.

Comment by Papa Legba Friday, Jun 1, 07 @ 12:22 pm
VM:

I have always believed that if Jim Ryan had ran as ‘Jim Smith’ or ‘Jim Green’ or anything but Ryan he would have been elected hands down. Blago’s election was as big of a surprise to the Democrats as anyone.

I am not saying that Jim Ryan would have been a reformer or necessarily a great governor but I don’t think he would have been the single-minded simpleton that GRod is. There was simply no stomach for electing anyone named Ryan after the King George debacle.

The Dems never really envisioned winning in 02 so, when they found themselves in control of the governor’s mansion they didn’t have a clue how to proceed. They still don’t. Even with control of everything they manage to find new ways to fail.

I think at one time Dan Walker was considered to be the worst governor in Illinois modern history. George Ryan became the new winner. GRod is fast approaching being crowned the new champion. Illinois is regressing and there doesn’t seem to be much that anyone can do about it.

Comment by Name/Nickname/Anon Friday, Jun 1, 07 @ 12:26 pm
- steve schnorf

You are as delusional as “our/not for long” corrupt governor.

Comment by Jack T. Colt Friday, Jun 1, 07 @ 12:31 pm
Jack, which part of what I said is delusional, and how do you know?

Comment by steve schnorf Friday, Jun 1, 07 @ 12:36 pm
Jack, don’t just attack people here without explaining. Better yet, leave the attacks aside and just engage.

Comment by Rich Miller Friday, Jun 1, 07 @ 12:38 pm
Sorry but Ali D. Ata, Former Executive director of the Illinois Finance Authority is a TOP DOG.
And contribution(s) of $65,000.00 are a big deal too. Don’t be so naive to think that Milo didn’t know what was and is going on.
But with all that said, I’m sure he was one of the many “godfathers” the Blagojevich’s have.

Comment by Jack T. Colt Friday, Jun 1, 07 @ 12:47 pm
Was that better?

Comment by Jack T. Colt Friday, Jun 1, 07 @ 12:48 pm
Well I think a lot of Illinois “top officials” will be receiving a similiar indictment. This indictment was the first of many to come.

“Aiding and abetting fraud”

Comment by the charge of aiding and abetting fraud..... Friday, Jun 1, 07 @ 12:49 pm
Thanks, Jack. Much better.

Comment by Rich Miller Friday, Jun 1, 07 @ 1:05 pm
Jack, perhaps you’re right. It has been my experience that large campaign contributions aren’t related to appointments to positions where there is too much at stake to have a screwup in charge. Those kind of folks typically end up in more honorary roles-(chairman of something, for example). Most $65,000 givers can’t afford to take government jobs.

Perhaps I’m wrong, and this guy got his day-to-day orders directly from the Governor or chief of staff, but I doubt it very much.

My best guess is the Governor or his staff took too much advice from some people who they thought they could trust, for some reason didn’t vet people well enough, and ended up with some bad apples. You seem to be pretty sure, though, so I guess we’ll just wait and see.

Comment by steve schnorf Friday, Jun 1, 07 @ 1:20 pm
I can’t believe this discussion. The Governor exercised terrible judgement in allowing these questionable appointments to be made. As the saying goes, “he knew or should have known that these guys were opportunists at best or criminals at worst”. If the vetting process was flawed as Steve Schorf suggested, the Governor is still responsible for the process and the result. My God, does no one take responsibility for their actions anymore?

Comment by one of the 35 Friday, Jun 1, 07 @ 1:29 pm
I’m curious as to when and why Steve became this administration’s apologist.

Comment by fly on wall Friday, Jun 1, 07 @ 1:37 pm
- one of the 35 -
“My God, does no one take responsibility for their actions anymore?” Hey!! Don’t blame me I voted for Topinka ! - How’s that for dodging the bullet?

Comment by A Citizen Friday, Jun 1, 07 @ 1:50 pm
Fly on the wall,
I have been asking those questions for months. Every time he posts it is the same.

Comment by nino brown Friday, Jun 1, 07 @ 2:08 pm
And the posts always have the same tone. Sort of like a blast of warm air from someones lower regions.

Comment by Papa Legba Friday, Jun 1, 07 @ 2:16 pm
I resent the Chi Trib editorial titled “Will Springfield Ever Learn?” It is not the citizens of Springfield that are causing this SNAFU.

Comment by i d Friday, Jun 1, 07 @ 2:39 pm
Thanks, guys

I don’t consider myself an apologist for this governor. I consider myself to be someone who has had some experiences that not all of the commenters here have had.

When a bad appointment gets made in an administration (or other significant bad things happen) I don’t believe that the governor doesn’t have ultimate responsibility. I do believe that in this case, as in most, he probably didn’t do it or directly manage it himself. Maybe that makes him a bad governor, maybe it makes him a bad manager, but it doen’t per se make him a crook, or corrupt, as so many of you seem to believe.

Fortunately, in a democracy, a governor who isn’t doing a good job (bad governor, bad manager, or whatever) has to get re-elected or leave office, effectively submit himself to a referendum. We just had one on this governor. Apparently only about 25% of the adults in this state agreed with you all that he was doing a bad enough job to warrant being replaced.

I have no way to know personally whether this governor is corrupt or not, but I doubt it; most people aren’t. However, I doubt that very many, if any, of you know personally either. All of us on the outside can only see the shadows on the back of the cave, and try to interpret them, leaving us with opinions, not facts. I bring a different perspective to that than many others.

That’s why I object to the anonymous attacks, not just on Blago, but on anybody. When you are anonymous, how can we measure the likelihood of your remarks being informed criticism, partisan attacks, personal bitterness, tin-hat lunacy, or what? I sign my name so you can make that informed judgement about my remarks.

In this case, my interest is in what went wrong, and why/how. I doubt very much that the governor said, “Find me a crook to run this agency, so he can enrich Tony and embarrass me.” If anything close to that is the case, we don’t have to speculate, just wait for the US Attorney.

Comment by steve schnorf Friday, Jun 1, 07 @ 3:01 pm
Steve, I agree with you, but it appears to me that he is corrupt and obviously either wants things done a certain way or turns a blind eye to what is happening underneath him.

Also, I will start using my own name when I reach your status. HAHAHAHAHA! I’m hoping you have a sense of humor.

Comment by Team Sleep Friday, Jun 1, 07 @ 3:44 pm
Your experience isn’t all that you make it out to be Steve. I know you and you know me. That is the good part about being anonymous. I don’t even care if you are or are not steve schnorf. It would help your street cred if you were not. Steve schnorf is known to be a career bureaucrat, and their opinions, to me, are worthless. I think Bill has a more reality based opinion than you, and I can’t stand Bill. You are so caught up in being steve that you don’t realize you are a nobody and a nobody you will remain.

Comment by nino brown Friday, Jun 1, 07 @ 3:54 pm
How in the heck did this governor ever get elected?? I can’t see how any Democrat would lose to him in a future primary. Is the citizenry that naive? This guy is terrible.

Comment by anon Friday, Jun 1, 07 @ 10:50 pm
If you are Steve Schnorf, I’d have to say that there are those of us that do not remember you having great wisdom. You seem to talk the talk and walk the walk of why this state is sliding slowly into the abyss.

Comment by i d Saturday, Jun 2, 07 @ 2:28 pm