Hints of Bigger Things

The Rezko scandal may yet bring the Obama campaign to its knees. The national media is getting whiffs that all isn't on the up-and-up in Illinois politics and Obama is just another cog in the Chicago Machine. But this article in the Sun Times regarding the latest in Rezko's shady dealings really ought to get bigger play:

• Four years after a company with ties to indicted political insider Tony Rezko landed a lucrative no-bid Cook County contract, there's no evidence the firm has done any work for the millions of dollars it has made.

  Crucial Communications is a minority-owned subcontractor on AT&T's pact to provide phone services at the county jail. But a recent audit shows the company has not submitted any documents showing what it has done for the more than $2 million it has received, other than help AT&T meet its minority contracting requirement.

Any investigative reporter worth their salt could dig up hundreds, of not thousands, of contracts like this that add untold MILLIONS of dollars to public works contracts, fleece taxpayers and serve only to feather the nests of connected political families and friends.

Example: You run a city Department. You need hundreds of widgets to keep something running. You do the research and find out that the ACME Company can supply you widgets for $1 apiece. Can you go out and buy 500 widgets at $1 per?

Hell no. The company doesn't kick in to the correct politicians or they might not even be based in the state. You have to go to a city approved "vendor" who will order the widgets for $1 per, but then re-sell them to the City at a significant markup - maybe $1.50 apiece or more. Then the vendor will make a "contribution" of some sort to various political entities, maybe $.25 per widget in order to continue being an approved vendor.

It's legalized bribery and it costs the taxpayers millions, maybe even billions over the years. And it isn't over widgets. It's over salt contracts, paper contracts, business equipment leasing, everything that keeps the bureaucracy running. The Hired Truck scandal is merely the most visible face of the hidden cost of doing business with the City.

It's unfortunate that a significant number of these companies, usually based out of a storefront office with an answering machine and no inventory, no supplies and no stock is used simply to increase "minority contracting requirements." Because the number of actual minorities who benefit from any of this sleight-of-hand is pretty much near zero.