Outside interest in Metra scandal magnified problem, official says

The sudden, intense scrutiny of outside agencies before Metra had completed a probe into potential financial misconduct by Executive Director Phil Pagano made a tough situation worse, one official contends.

Metra board member James Dodge doesn't say that added calls for investigation on top of one already under way at the transit agency caused Pagano to step in front of a Metra train last Friday. But he did indicate Monday that they complicated an already delicate situation both for Pagano and for Metra.

Pagano's death a short distance from his Crystal Lake home came hours before the Metra board of directors was expected to decide on his future. In the days leading up to their meeting, federal and local authorities also had intervened in the inquiry.

Metra hired an independent attorney April 30 to investigate allegations of impropriety, including whether Pagano, 60, received about $100,000 of unauthorized vacation pay. Pressure mounted last week when the Federal Transit Administration, Sen. Dick Durbin, the Illinois attorney general's office and Cook County state's attorney's office became interested in the case.

That external involvement increased media attention and was unfortunate given that Metra hadn't reached any conclusions, Dodge thinks.

"You look at the timing of everything - and it makes you wonder if there was a contributing effect - we'll never know," he said.

"I would have preferred if we had the chance to get the facts straight and then - if appropriate - made the decision to get other authorities involved, instead of the explosion of interest."

Durbin asked the U.S. Department of Transportation's inspector general to check if there was any misuse of federal funds going on at Metra.

Asked if the senator was overstepping, spokeswoman Christina Mulka said, "Sen. Durbin believes that with over $150 million in taxpayer funding given to Metra, the federal government has a responsibility to see it is spent appropriately and not misused."

The FTA told Metra it would increase its oversight of Metra's use of federal funds while it looked into the allegations.

The County Cook state's attorney's office has said it could not confirm or deny if an investigation into Metra was pending. The Illinois attorney general's office confirmed it expected to receive a copy of the internal report to review once Metra had completed it.

Metra Chairman Carole Doris stated last week that the agency was ready and willing to cooperate with the FTA and department of transportation.

Dodge, a Schaumburg executive who lives in Orland Park, believes there was no evidence of "deep, systemic financial fraud."

"This thing spiraled," Dodge noted. "It's unfortunate this thing ended so tragically when we were working our way through it carefully and diligently."

Pagano admitted to Metra directors he'd acted wrongly and apologized during a meeting April 30. He had served the agency since 1984 including two decades as executive director.

Visitation for Pagano is today and a memorial service is Wednesday.

Meanwhile, the Metra board meets Friday to discuss tightening financial oversight and could receive a report on the investigation.