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 Chicago Mayor Rahm Emanuel ordered an outside audit of the
city’s $100 million-a-year workers’ compensation program Jan. 6, just days after
federal agents filed attempted extortion charges against the program’s boss.
Ald. Ed Burke, 14th Ward, on Jan. 4 resigned as chairman of the city’s Committee
on Finance, which also carried control of Chicago’s workers’ comp program.
Emanuel then said he would take the program’s control away from the City Council
and place responsibility with the city’s finance department, according to the
Chicago Tribune.
“After years in the Committee on Finance, we have a unique opportunity to hit
the reset button on workers’ compensation. We should not and will not squander
this opportunity,” Emanuel’s news release stated.
Burke had been in charge of the workers’ comp program since 1983 , and fought
off any outside supervision, including by the city’s inspector general. That
ended with the alderman’s resignation as finance committee chairman.
Emanuel said the city will work to get a preliminary report on the program
within 60 days of selecting the outside auditor. The audit will cover program
operations as well as identify waste and corruption, a statement from Emanuel’s
office said.
A 2018 lawsuit claimed Burke used the program to build a political army,
including hiring unqualified workers such as a dog walker, hairdresser and
waitress to run the costly program. Burke also blocked outsiders from seeing how
Chicago’s 50 aldermen spend their $1.3 million-a-year expense accounts.
Federal prosecutors filed attempted extortion charges against Burke Jan. 3,
alleging that in 2017 he tried to use his position as alderman to pressure
Burger King executives to hire his private law firm for the restaurant’s
property tax work.
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The charge details a cellphone conversation between
Burke and a ward worker recorded by an FBI wiretap, in which the two
discussed withholding a building permit to pressure the Burger King
executives after they failed to contact Burke’s law firm for legal
work.
Burke, Chicago’s longest-serving alderman, is 75 and has spent 50
years on the City Council. His wife, Ann Burke, is a justice on the
Illinois Supreme Court. The influential power broker is known for
wearing fedoras and pinstripe suits, swaying judicial appointments
and raising more campaign cash for politicians than any other
alderman.
The felony federal charge detailed a $10,000 political donation
solicited for a politician, who the Chicago Tribune identified as
mayoral candidate and Cook County Board President Toni Preckwinkle.
Preckwinkle’s campaign stated she returned the donation, but the
charge states the campaign only returned the portion that exceeded
the state’s $5,600 individual donor limit.
Preckwinkle also said she will return $116,000 in campaign donations
from a fundraiser held a year ago at Burke’s home. She is one of 15
people who formed campaign committees to become Emanuel’s
replacement.
Burke is free on a $10,000 unsecured bond. He has refused comment to
reporters, but released a video to supporters declaring that he is
still seeking re-election for his 14th Ward seat.
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