Privatization or Cronyization?
Mayor Daley has become a public fan of “privatization” over the years.
He privatized the Skyway. Talked about privatizing Midway Airport. Privatized the parking meters.
And now he’s privatizing city trucking (gee, there’s never been a city trucking scandal before, has there?)
Anyway, true privatization is supposed to save taxpayers money by putting out certain government functions to bid to private companies. That is — putting it out in a competitive bid. Basic free market economics teaches us that this competition breeds better service and lower cost.
Unless, of course, the privatization is rigged and the bidding is anything but competitive.
Which brings us to this story in this morning’s Chicago Tribune:
About 60 recently laid-off Chicago truck drivers picketed Friday at a city facility on the South Side, protesting that politically connected private companies are now doing work public employees performed for Mayor Richard Daley’s administration.
Under a deal that went into effect July 1, the city hired private contractors to haul construction debris from city work sites for the Water Management Department. Among the companies chosen was Reliable Asphalt Corp., which received a $158 million, three-year contract.
Reliable owner Michael Vondra has donated tens of thousands of dollars to local politicians, including Daley, the Democratic organization in the mayor’s 11th Ward power base and the pro-Daley Hispanic Democratic Organization. City records show Reliable’s lobbyists on the deal are Victor Reyes, a former Hispanic Democratic Organization chairman and top mayoral aide, and David Bonoma, son of Daley’s longtime secretary.
Privatization is a convenient buzzword behind which the Daley Administration can hide behind to dole out lucrative contracts to political cronies while pretending to save the taxpayers money.
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