Metra urged to get 'fresh set of eyes' for financial audit

Metra needs "fresh eyes" to get to the bottom of financial misconduct at the agency, state lawmakers contend.

Metra is in the midst of an internal review to see how at least $475,000 in unauthorized vacation payments were made to late Executive Director Phil Pagano. The longtime Metra chief died May 7 in an apparent suicide while an inquiry into improprieties was under way.

State Sen. Susan Garrett wrote to Metra Chairman Carole Doris Tuesday requesting that the board of directors hire an outside auditing firm to scrutinize all expenses related to the executive director's office.

"I believe that this is critical given the fact that Metra has admitted to almost half a million dollars in questionable expenditures related to this office," the Lake Forest Democrat wrote.

The Metra board Friday created two committees to examine salaries and operations at the executive director's office. Officials also hired an outside law firm to advise the committees and appointed its chief internal auditor as acting inspector general.

Garrett called such steps insufficient to restore public confidence, and one Republican colleague agreed with her. Sen. Kirk Dillard said either an external audit or one conducted by state Auditor General William Holland was advisable.

"It's a good idea to have a fresh set of eyes, especially since Metra was so executive-director-centric," said Dillard, who lives in Hinsdale. "Plus the internal staff with all due respect is going to be emotionally wedded to the tragic death of Mr. Pagano."

Metra spokeswoman Judy Pardonnet said that "the board is committed to doing anything and everything they can to ensure all proper financial controls are put in place."

Garrett also is advancing legislation seeking to require Metra to hire a permanent, independent inspector general. "Having an inspector general in place is critical to ensuring that business is done aboveboard and without corrupt influences," she wrote Doris.

Pardonnet said board directors intend to hire an inspector general from the outside but appointing the chief internal auditor was an important first step.

Other authorities already are intervening in the scandal. The U.S. attorney's office and U.S. Department of Transportation's inspector general are involved in a review of events, as is the Illinois attorney general's office.

The Regional Transportation Authority has financial oversight of Metra, the Chicago Transit Authority and Pace. An RTA official said the agency was monitoring the situation, but it appears there are no immediate plans to audit Metra.

State Sen. Susan Garrett wrote to Metra Chairman Carole Doris Tuesday requesting that the board of directors hire an outside auditing firm to scrutinize all expenses related to the executive director's office.

The Metra board Friday created two committees to examine salaries and operations at the executive director's office. Officials also hired an outside law firm to advise the committees and appointed its chief internal auditor as acting inspector general.

Garrett called such steps insufficient to restore public confidence and one Republican colleague agreed with her. Sen. Kirk Dillard said either an external audit or one conducted by state Auditor General William Holland was advisable.

"It's a good idea to have a fresh set of eyes, especially since Metra was so executive-director-centric," said Dillard, who lives in Hinsdale. "Plus the internal staff with all due respect is going to be emotionally wedded to the tragic death of Mr. Pagano."

Other authorities already are intervening in the scandal. The U.S. attorney's office and U.S. Department of Transportation's inspector general are involved in a review of events as is the Illinois attorney general's office.

The Regional Transportation Authority has financial oversight of Metra, the Chicago Transit Authority and Pace. An RTA official said the agency was monitoring the situation but it appears there are no immediate plans to audit Metra.

Garrett also is advancing legislation seeking to require Metra to hire a permanent, independent inspector general. "Having an inspector general in place is critical to ensuring that business is done aboveboard and without corrupt influences," she wrote Doris.