On our backs

MAYOR EMANUEL CONTINUES GETTING CASH FROM FIRMS MANAGING CHICAGO'S PENSION MONEY

CHICAGO - David Sirota writes in the International Business Times (IBD) about Chicago Mayor Rahm Emanuel's handling of accusations that his reelection campaign improperly accepted contributions from companies that manage city pension funds.

As reported here on IR, campaign contribution caps for the race were removed when William J. Kelly placed $100,000 of his personal funds into his Chicago mayoral campaign. Shortly thereafter, Kelly announced he was dropping out of the race. However, not before his donation to himself allowed all other candidates - including Emanuel - to collect
unlimited donations.

As a result, last week Emanuel raked in more than a half-million dollars in campaign cash in a single day. Among the contributions were $100,000 from top executives at Madison Dearborn Partners and another $50,000 from John Buck, the principal of the John Buck Company. Those two firms currently manage Chicago pension money and their executives have previously made major campaign contributions to Emanuel, who appoints members of the boards overseeing pension investments.

As Sirota notes: "Chicago lawmakers have asked the Securities and Exchange Commission to investigate possible violations of the agency’s 'pay-to-play' rule, designed to prevent campaign contributions to public officials from executives at firms managing public pension money."

According to IBD, a document has surfaced from the Emanuel-appointed ethics commission "showing the mayor's administration asserting that financial firms' business with city pension funds are exempt from the city's ethics law. The commission said its nonbinding interpretation effectively means Emanuel's donors should not have to comply with restrictions on campaign contributions that other city contractors must comply with."