David Sirota: Should Rahm Emanuel Be Exempt From Ethics Laws?

from In These Times:


Should Rahm Emanuel Be Exempt From Ethics Laws?
Executives at firms managing Chicago pension money have made more than $600,000 in donations to the mayor, despite a city ordinance—and an executive order by Emanuel himself—restricting contributions from city contractors.

BY DAVID SIROTA


On its face, Chicago’s municipal pension system is an integral part of the Chicago city government. The system is included in the city’s budget, it is directly funded by the city, and its various boards of trustees include city officials and mayoral appointees. Yet, when it comes to enforcing the city’s anti-corruption laws in advance of the Chicago’s closely watched 2015 municipal election, Mayor Rahm Emanuel’s administration is suddenly arguing that the pension funds are not part of the city government at all.

The counterintuitive declaration came last month from the mayor-appointed ethics commission, responding to Chicago aldermen’s request for an investigation of campaign contributions to Emanuel from the financial industry. The request followed disclosures that executives at firms managing Chicago pension money have made more than $600,000 worth of donations to Emanuel. The contributions flowed to the mayor despite a city ordinance—and an executive order by Emanuel himself—restricting mayoral campaign contributions from city contractors.

Brushing off the lawmakers’ complaint about Emanuel’s donations from the financial industry, the mayor’s ethics commission issued a nonbinding legal opinion arguing that Chicago's pension systems are “not agencies or departments of the city, and thus firms that contract with them are not doing or seeking to do business with the city.” The commission’s interpretation means financial firms’ business with Chicago pension funds should be considered exempt from city ethics laws.

With the aldermen’s complaint about campaign contributions generating headlines and potentially complicating Emanuel’s already tough race for re-election, the Emanuel-appointed commission was unusually frank about its motives: It said the release of its opinion was designed “to attempt to ensure that no ethical clouds are hanging over any candidate’s head.” ................(more)

The complete piece is at: http://inthesetimes.com/article/17530/rahm_emanuel_ethics_laws