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* It’s not exactly clear to me what the heck is going on here. There’s a court hearing today, so we should know more after that’s over.
First, the Sun-Times lede…
Four months after receiving a subpoena for the results, an accounting firm hired by the Blagojevich administration refuses to turn over its audit of a company with ties to Gov. Blagojevich — and court documents reveal the administration is controlling the firm’s legal strategy.
In January, Blagojevich requested an audit of the state’s dealings with K.K. Bio-Science, whose owner, Anita Mahajan, was later charged with defrauding the state. Prosecutors say the audit could be used to bring additional charges against Mahajan and get millions back for Illinois.
But accounting firm Crowe Chizek still has not turned over the complete results, according to court documents and sources involved in the investigation.
* But the Tribune had this…
The governor’s office said Wednesday the records have been turned over. The monthslong delay was because the audit had not yet been completed “and an issue that arose over a provision of state law that prohibits the release of names for DCFS clients,” said Blagojevich spokeswoman Abby Ottenhoff.
John Gorman, a spokesman for Cook County State’s Atty. Richard Devine, declined to elaborate on the court filing except to say, “We have had no difficulty receiving the information we sought.”
* Back to the Sun-Times…
The memo asserts an audit of K.K. Bio-Science’s contract with the Department of Children and Family Services has been complete since June. On Oct. 2, a lawyer for Crowe Chizek called Chmelar and said Blagojevich counsel Bill Quinlan Jr. “would handle compliance with the subpoena.”
And on “multiple occasions,” the memo states, “a representative from the Office of the Governor” contacted prosecutor Patricia Woulfe and said “he would direct Crowe to deliver the documents.”
But sources close to the investigation say that not all documents have been turned over. The subpoena ordered the firm to produce everything.
So, if not all documents have been turned over, then why is the state’s attorney saying there haven’t been any problems?
* Some background…
Anita Mahajan, who has had business ties to Gov. Blagojevich’s wife, used lucrative no-bid contracts to steal $2.1 million from taxpayers while lying about her company’s tax status, prosecutors said Thursday. […]
At her bond hearing hours earlier, prosecutors described the enviable position her firm, K.K. Bio-Science, held with the state until it shut down recently. The firm’s contracts with the Department of Children and Family Services “were completely disproportionate” to those of other firms performing the same services, assistant state’s attorney Patricia Woulfe said.
* More background…
A Chicago banker whose wife is accused of bilking millions from a no-bid state contract has helped raise more than a half million dollars for Gov. Rod Blagojevich’s campaigns since 2001.
Amrish Mahajan was a driving force behind his wife’s drug-screening company, now facing questions about how it kept its long-standing state contract despite troubles with taxes, licensing and years of alleged fraud.
A review of records and dozens of interviews reveal the company was built on Mahajan’s deep Chicago political connections and its government business grew along with his reputation as a power broker in the city’s Indian community.
* Back to today’s Tribune…
Prosecutors also have alleged Mahajan used some of the money from her state payments to buy property in Chicago and New York. In at least three of those purchases, Mahajan used Patricia Blagojevich as her agent, but there has been no suggestion the first lady was aware of the alleged scheme.
* Somewhat related stuff…
* State worker fired for leaking report attorney said
* Editorial: Secrecy hurts Inspector General system
posted by Rich Miller
Thursday, Nov 1, 07 @ 9:14 am
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You people are always picking Indians, can’t find some corrupt Angloes?
Comment by GettingJonesed Thursday, Nov 1, 07 @ 9:17 am
The Inspector General’s office is a joke. It investigates the people the Governors office tells them to. Their mission is to Protect the Governor and hound the people who do not support him.
Comment by He makes Ryan Look like a Saint Thursday, Nov 1, 07 @ 9:20 am
As we know from reading about the massive corruption pertaining to the billions in Iraq contracts, wherever there is a pile of contract money there is corruption, the more money, the more corruption.
The KK Bio scam went on over at DCFS for a long time. So, didn’t anyone over at DCFS’ contracting arm (there must be one, they give out at least tens of millions in contracts every year) notice that things weren’t quite right with Ms. Mahajan’s contract. Or did they notice and decide silence was the better part of valor. Maybe the DCFS contract liaison should have sent a report to the Trib..oh wait, maybe not such a good idea….
well, you get the drift. Somebody, or perhaps more than one somebodies, who makes a big salary plus lavish pension and health perks, didn’t bother to
actually do they work they were hired to do.
There will always be corruption where there are government contracts. That’s why we pay for contract monitoring. Apparently, as is usual with DCFS and so many other state agencies, we aren’t getting anywhere near what we are paying for.
Comment by Cassandra Thursday, Nov 1, 07 @ 9:24 am
There sure are a lot of Middle Eastern connections associated with Blagojevich. When do you think the U.S. Department of Homeland Security should get involved?
Comment by Nothing passes the smell test Thursday, Nov 1, 07 @ 9:34 am
Save Magalis!
Comment by Ferris Thursday, Nov 1, 07 @ 9:52 am
Further proof Illinois is getting sold out from under our noses.
Compliments of Rod & Patti Blagojevich
Their greed know’s no bounds.
Comment by Illinois in distress Thursday, Nov 1, 07 @ 10:00 am
I don’t know where the Mahajans are from or how long they have been in this country.
However, it wouldn’t be irrational for entrepreneurs from foreign and, say, ethically challenged countries who move to Illinois to conclude that the way to get government contracts is to hand out bundles of cash to politicians of whatever party is in power, their families, and to state legislators and state bureaucrats and their families as well. Think Norman Hsu, another
famous contributor to the Dems.
To the external observer, that’s how Illinois works. It’s only the mass of Illinois citizens who don’t seem to understand it….or, if they do,
they don’t seem to mind continuing to pay for it.
Comment by Cassandra Thursday, Nov 1, 07 @ 10:50 am
I’m so glad that this governor has eliminated doing business as usual, and is rooting out corruption in his adminstration!
Comment by one of the 35 Thursday, Nov 1, 07 @ 11:33 am
Cassandra
If one was to listen to you one can only conclude “you have a monopoly on knowledge and the facts”. If only “the mass of Illinois citizens” (myself included) were as blessed! You continue to make these broad and sweeping accusations without considering the ramifications.It’s one thing to express and opinion, which you are entitled to, but quit the misleading and incorrect statements that are put forth by you as if they are fact!
Comment by MOON Thursday, Nov 1, 07 @ 1:02 pm
” Somebody, or perhaps more than one somebodies, who makes a big salary plus lavish pension and health perks, didn’t bother to
actually do they work they were hired to do.”
I find that very hard to believe,Cassie, especially in the Blagojevich administration.
Comment by Bill Thursday, Nov 1, 07 @ 1:41 pm
I’m going to say this again.
Large pots of government money attract corruption.
That’w why we have auditors and contract monitors and ethics training and so on.
Somebody at DCFS wasn’t doing their job on the KKBio contract. Note that I’m not saying this is evidence of corruption. It could just as likely be evidence of ineptitude…perhaps more likely, given the agency involved.
Either way, we’re not getting what we paid for.
And that should be the concern here, not whether Mrs. B. made some money off the Mahajans. There will always be politicians and they will always have relatives.
Comment by Cassandra Thursday, Nov 1, 07 @ 2:13 pm
I can’t think of any valid reason that the complete audit should not be turned over to the prosecutors. It’s hard to figure out since the State’s Attorney says there have not been any difficulties in getting the requested records.
It will be interesting to hear what the alleged criminal hs to say about her real estate dealing once she is confronted with the reality of along prison sentence after her inevitable conviction.
Comment by Captain America Thursday, Nov 1, 07 @ 2:56 pm