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Another Ali Ata connection

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Illinois

* Hmm…

Says Jay Stewart, executive director of the watchdog group the Better Government Association: “Any time there’s a connection between Ali Ata, Rod Blagojevich and the governor’s wife, it deserves a second look.”

* So what is this about?

…the governor has helped give his daughter, and now her younger sister, more reason to like Rogers Park Montessori School.

His administration assisted the school’s leaders in building a new, state-of-the-art facility, with 17 classrooms, a high-school-sized gymnasium and foliage-covered roof. The building, which opened in January 2006, is a major upgrade over space the school had been leasing from two churches.

The school bought its 2.4-acre site and constructed its new home using a 30-year, $11.75 million borrowing plan it secured through Blagojevich’s Illinois Finance Authority. Private investors — not Illinois taxpayers — would be on the hook should the school default on that deal, which won approval when the Finance Authority was headed by a man who has since pleaded guilty to federal corruption charges.

State records show the governor personally signed off on the borrowing plan at the same time his wife, Patti Blagojevich, sat on the school’s board.

* Now, federal law required the governor to sign off on the loan and this wasn’t taxpayer money. But Ali Ata was the executive director of the Illinois Finance Authority at the time. Here’s a little refresher on Ali Ata, as if you needed it…

A former top official in Gov. Blagojevich’s administration said Tuesday the governor gave him a $127,000-a-year state job in exchange for pouring cash into Blagojevich’s campaign fund, including tens of thousands of dollars out of his own pocket.

That bombshell from Ali Ata came as the onetime director of the Illinois Finance Authority pleaded guilty in a deal in which prosecutors plan to have him testify in the ongoing corruption trial of former Blagojevich fund-raiser Tony Rezko.

* From 2003…

“He’s a friend,” Blagojevich said [in 2003], adding that they had been acquainted for 15 years. […]

“He’s totally committed to our mission of change and reform,” the governor said.

* As we’ve seen time and time again, “change and reform” has different meanings to different people. The end of the story?…

[A spokesperson said] the Blagojeviches didn’t pull any strings with the Finance Authority, nor did they play any role in the hiring of school law firms or contractors who contributed to the governor’s campaign fund.

I’m sure.

posted by Rich Miller
Thursday, Jun 12, 08 @ 9:52 am

Comments

It’s a really good Sun-Times story.

Comment by Cal Skinner Thursday, Jun 12, 08 @ 9:55 am
I’m shocked. Shocked, outraged, and in disbelief. Oh wait, it was Blago involved? Well then it was just BUSINESS AS USUAL in the state capital of Chicagofield or Springcago.

Comment by Concerned Voter Thursday, Jun 12, 08 @ 9:56 am
At the very least, it’s terrible p.r. A governor who hangs around the house all day doing nothing, makes promises to schools he doesn’t keep, yet his own kids’ school gets big-time attention from a state authority. No surprise here.

Comment by wordslinger Thursday, Jun 12, 08 @ 10:06 am
Wow, a Democrat who says we need more money for public schools and opposes vouchers for school choice sends his child to a private school. SHOCKING!

Comment by Ravenswood Right Winger Thursday, Jun 12, 08 @ 10:10 am
Abby ==says the Blagojeviches didn’t pull any strings with the Finance Authority, nor did they play any role in the hiring of school law firms or contractors who contributed to the governor’s campaign fund.==
That’s not how business is done in this administration.

Comment by Vote Quimby! Thursday, Jun 12, 08 @ 10:12 am
A good example of Illinois Democratic politics as it is routinely practiced not only in Chicago but now, under our Democratic regime, across the state.

The where’s mine approach, writ large and right under the taxpayers’ noses, even in the Information Age. There are likely many well off Democratic liberal parents whose kids attend this school–it’s the North Side, after all. Did any of them say anything, like, gee, might there be a conflict of interest here? What about the board. They knew all the details. Of course not.

Where’s mine. It’s the only way to survive in Democratic Illinois. That’s why I want a tax cut.
I want mine too, however small the slice. Give the money back. After all, as the guv famously said this week, the budget is no problem.

Comment by Cassandra Thursday, Jun 12, 08 @ 10:12 am
if the loans are covered by private backers, then why do they even need to go through the Illinois Finance Authority? Did this get them a lower interest rate?

also this part is a critical piece of the story:
“The law firm that represented the school before the Finance Authority — DLA Piper — has given $100,000 to the governor’s campaign fund. Contractors and other law firms who worked on the project gave Blagojevich $14,350. DLA Piper — which made $56,271 in fees working on the borrowing plan — is slated to do $293,092 in state business this year.”

Lot of money made its way back to the Gov from those involved. Interestingly the sun-times article does not discuss the “Private Backers.” Who are these private backers and how do we know they can pay themselves? The Illinois Finance Authority and State taxpayers could be on the hook if the private backers lack the money to pay off the debt, or like Rezko are just plain broke.

Comment by Ghost Thursday, Jun 12, 08 @ 10:14 am
Just so you know, the so-called Rogers Park Montessori School isn’t in Rogers Park. It’s at 1800 W Balmoral, located in Pat O’Connor’s 40th Ward. Apparently the school used to be in Rogers Park, but then Blago got involved and someone pulled the handle and flushed. The school ended up over by O’Connor.

I made a picture you all might enjoy.

Comment by Thomas Westgard Thursday, Jun 12, 08 @ 10:24 am
At this point, my question would be, has this governor done absolutely ANYTHING since taking office that hasn’t had some kind of direct or indirect benefit to himself or a member of his family/posse??

Comment by BigDog Thursday, Jun 12, 08 @ 10:26 am
BigDog, he cut funding for anti-violence programs in Chicago and fired a number of employees who were married or related to political opponents. he also removed funding for bridge repairs. These did not really directly or indirectly benefit. Unless you call revenge a benefit.

Comment by Ghost Thursday, Jun 12, 08 @ 10:30 am
I think the next logical question in this episode is whether the Blagojevich family actually paid tuition for their children @ this school ?

It is not a cheap school and it wouldn’t surprise me if there was some type of “scholorship” involved for them…

Comment by Helm Thursday, Jun 12, 08 @ 10:40 am
The insanity of governmental ethics is that in this case, a sitting Governor signed off on a public benefit to a private organization while his spouse was sitting on this entity’s board. This is being sold to the public as a normal business process.

The partsans will rally to the ‘they do it worse’ war call and name call anyone who believes that this is at best and appearance of impropriety. It is likely worse. (Where is that million that went to the Pilgrim Baptist Church school anyway? Rezco or other insider?)

The sad part is that this is tolerated.

Can someone explain why a State Senator has a spouse who is a lobbyist for an entity that is regulated by the State? In my mind that is a problem.

That is not a unique case. When dealing with other people’s money, things should be transparent.

In order to regain some consumer confidence the newspapers/media could list the ‘arrangements’ and cozy relationships between private and public interests. the problem there is that when they tell the truth the politicians stop talking to them , so they are afraid to write these kinds of stories. I have personally see how papers spike stories under political pressure.

Might even be the basis of a new web site…..

Comment by Plutocrat03 Thursday, Jun 12, 08 @ 10:47 am
I think this one is a bit of a stretch. The purpose of IFA is to do exactly this kind of financing. They do it all the time for schools, hospitals and other non-profits. They make money off of these deals typically.

Comment by 2for2 Thursday, Jun 12, 08 @ 10:56 am
Speaking of pictures, does anyone know where I can get one of Blagojevich at a presser with a “Reform & Renewal” background? I’ve tried google with no luck….perhaps someone has one stored away. Thanks!

Comment by Vote Quimby! Thursday, Jun 12, 08 @ 11:24 am
This situation at Rogers Park Montessori School was uber icky at the end of our time there. We left in protest, as did others.

Parents’ were miffed by the incompetent administration coupled with the high-pressure, high-dollar fundraising. It was tough to stomach especially since they provided no disclosures, no financials, no budgets, nothing.

If DLA Piper got that house in order, they earned their fees.

Btw, the pre-school was on Thorndale and the elementary school was on Bryn Mawr in Edgewater (48th Ward) before it moved to the Balmoral address, not Rogers Park. If the school had been in RP at some point, it would have been back in the late 60s, early 70s.

Comment by Suzanne Thursday, Jun 12, 08 @ 11:50 am
The Blagojeviches didn’t pull any strings, is absolute BALONEY, they’ve tainted just about every Illinois state agency with their high-priced goofs.

Comment by Smokin' Thursday, Jun 12, 08 @ 12:01 pm
As a sie comment, the argument that the deal required the Gov’s sig so he had to sign it does not fly. technically the Gov could have recused himself do to the conflict, and sent the paperwork to the Lt. Gov to sign. When an agency head has a conflict with an administartive decision, the Gov can appoint somone to serve as the head for that decision due to the conflict. Illinois alreads has a succession in the evnt the Gov is unable to carry out his duties. While it is just a single decision; the Gov should have identified himself unable to carry out his duties due to the conflict on this one issue and passed it down to the Lt. Gov. for review.

Comment by Ghost Thursday, Jun 12, 08 @ 12:05 pm
From the Illinois Statutes:

(i) The Authority shall have the power to make loans to persons to finance a project, to enter into loan agreements with respect thereto, and to accept guarantees from persons of its loans or the resultant evidences of obligations of the Authority.

The Authority currently has $26,000,000 in assets but is on the hook for $11,600,000,000 outstanding bonds.

A guy like Atta was deciding who’s guarantees he would accept to make loans ultimately guaranteed by the taxpayers.

And people wonder why he would give Blagoavich the equivalent of his salary in order to have his job.

Rezko was taking bribes on finder’s fees.

Atta had several fold more opportunities to make money and no one to complain.

Those he helped aren’t going to be talking.

Comment by True Observer Thursday, Jun 12, 08 @ 1:38 pm
There was that ‘half a bridge’ thing-y that I’m sure didn’t benefit Blago. Of course, it didn’t benefit anyone else either.

Comment by Of no benefit to Blago... Thursday, Jun 12, 08 @ 3:07 pm