Official: All Metra board members must go

State senators pushed for an independent inspector general at Metra in the wake of a misconduct scandal, while one official recommended replacing the entire board at a Wednesday hearing.

Former Executive Director Phil Pagano committed suicide May 7 in the midst of a probe into financial misdeeds.

Pagano received at least $475,000 in unauthorized vacation payouts and forged Chairman Carole Doris' signature on related documents, Metra officials said.

"I'm here today to ensure we turn this train around and do whatever it takes to bring in an independent inspector general ... to essentially clean house," Sen. Susan Garrett, a Lake Forest Democrat, said at the State Government and Veterans Affairs Committee hearing.

Sen. Terry Link said he'd long advocated that Metra fire Pagano, explaining, "I think that was the cancer of Metra. This has been years in coming. This was a czar. It was one individual running Metra."

Under Pagano's broad executive powers, certain executives received perks such as extra weeks of vacation, payouts for unused vacation contrary to company policy and 401(k) contributions on top of a retirement plan.

"Let's change this board," said Link, a Waukegan Democrat. "Let's get a new board. The taxpayers of Illinois want a fresh start."

Metra leaders promised a new era of transparency and have hired consultants to review management policies and act as a temporary inspector general.

"What's clear now ... is that Phil Pagano abused his authority," Doris said. "I don't know of another public sector agency that's been so committed to publicly reviewing its own problems. In 60 days, we've created a new Metra."

But the agency came under criticism for contemplating hiring its own watchdog. Suggested alternatives included having the governor appoint an inspector general subject to Senate confirmation.

"What must be avoided is an inspector general that serves at the pleasure of those he is charged with investigating but is denied permission to key resources and is seen as too closely aligned with management," said former city of Chicago inspector general David Hoffman, who was among a number of officials and representatives of government watchdog agencies testifying.

Lawmakers also briefly discussed the extensive powers of the executive director and Sen. Matt Murphy asked if Metra board directors got enough training to do their jobs effectively.

"Are we leaving them unintentionally in the dark where they're rendered rubber stamps for an all-knowing executive director?" asked Murphy, a Palatine Republican.

Garrett, who called for the hearing, grilled Doris about how Pagano ended up owing Metra money because of loans he took out from an executive incentive program.

"I don't understand it myself," said Doris, adding the agency had paid substantial sums to auditors who were supposed to detect irregularities.

Officials did pledge to work together on the inspector general issue.

"I know you're here for the right reasons," Garrett told Doris. "But we don't want to allow the system to be gamed any more."

In response to Link's call for a new board, Director and Arlington Heights Mayor Arlene Mulder said most directors joined the board after some of the faulty procedures were instituted and were trying to rectify the issues now.

Director James LaBelle, of Zion, said his choice would be to stay and tackle the problem.

"There's a lot of work that needs to be done now," he said. "It wouldn't be helpful to run away."