Study: Metra needs a permanent watchdog

Since starting in late May, the private firm acting as Metra's inspector general has received 77 complaints of ethics abuses.

The accusations include allegations about hiring, procurement and overtime, representatives with Chicago-based Hillard Heintze said Friday.

The firm was hired to investigate misconduct complaints following the May 7 suicide of former Executive Director Phil Pagano in the midst of a financial probe. It was later revealed he took at least $475,000 in unauthorized vacation payouts as well as other apparent abuses of power.

Metra board directors also reviewed a 100-page, Hillard Heintze report on how to create the office of an inspector general.

The study essentially says that an inspector general is a good idea, that the office should be independent and that Metra could either run the program in-house, hire an outside firm or do a combination of both. Costs could range from $500,000 to $1.5 million for the first year.

Hillard Heintze did not address one controversial issue - who should pick the inspector general.

Metra has favored having the board appoint an IG but some state lawmakers led by Sen. Susan Garrett, a Lake Forest Democrat, want an outside entity, such as the governor with confirmation by the Senate, to make the decision. Having an IG hired by the board could compromise his or her autonomy on certain investigations, they contend.

Metra is expected to meet on the issue with legislators, good government groups and the Regional Transportation Authority Sept. 10.

"We're committed to working with her (Garrett) to create an independent office of the inspector general," Metra Chairman Carole Doris said.

Metra has hired a small army of outside consultants since the scandal broke in April. Hillard Heintze is paid $358 an hour while the accounting firm of Blackman Kallick is paid a range of $98 per hour for a staff consultant up to $290 for a senior partner to scrutinize Metra's financial practices.

Director Larry Huggins of Chicago called Hillard Heintze's efforts money well spent. And although Metra leaders have been criticized by the public and some legislators for dropping the ball regarding Pagano's misdeeds, Huggins asserted that "the board and staff are doing a good job running the agency."

In addition to Hillard Heintze and Blackman Kallick, directors Friday approved a five-year contract of up to $2.5 million with attorneys Johnston and Greene who will advise the board. Previously, this job was the responsibility of Metra's general counsel but after the Pagano fiasco, a separate position was created.