04 October 2011

Inspector General Questions Contributions to Maggie Daley Charity

Inspector General Questions Contributions to Maggie Daley Charity

More cracks are popping up in former Mayor Richard Daley's administration.

A report released Tuesday by Chicago Inspector General Joseph Ferguson alleges the city, under Daley, required firms receiving tax increment financing (TIF) subsidies to donate money to certain non-profits groups.

Among those private groups, Ferguson said Maggie Daley's After School Matters and its KidStart Program received the second-most money -- $915,000 from at least 16 contributions. According to the report, many of the contributions were not publicly disclosed.

Ferguson said he was not commenting on whether After School Matters, the program Maggie Daley started and nurtured for two decades, or other non-profits deserved the money. But he said it creates the appearance of preferential treatment for an organization with close ties to the city.

"Regardless of the nature of the work performed by After School Matters, the lack of transparency in the city's public benefits program undermines the public's trust," Ferguson said in the report.

The report says $3.7 million was contributed to various non-profits via 27 grant agreements.

Last month Mayor Rahm Emanuel introduced Maggie Daley at a fundraising gala to celebrate 20 years of After School Matters. The event was her first high-profile appearance in several weeks and she received a standing ovation and a rousing welcome as she took the stage.

"Every day I am inspired by what these young people can accomplish, and I can't wait to see what we can achieve together in the next 20 years. After all, after school matters," Mrs. Daley said in her remarks.

Ferguson suggested the city discontinue its inclusion of private non-profits as recipients of public benefits clauses.

"If the City continues to designate private entities as the recipient of public benefits clauses, the IGO recommends that the City take immediate steps to improve both transparency and accountability in the public benefits process."

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