Thursday, October 18, 2012
The Chicago Way: CTA Inflates Bus Miles Traveled To Defraud Federal Taxpayers
A report in today's Chicago Tribune says the Chicago Transit Authority (CTA) stands accused of inflating the number of miles its buses traveled as far back as 1982 in order to obtain greater funding from the federal government. A watchdog group says by "fraudulently over-reporting" the number of miles CTA buses travel while in service that the transit agency received at least $150 million more from the federal government than it was entitled. The CTA claims it follows federal guidelines, but Cause of Action cites "insider audit information" from six years ago to support its contention. Cause of Action blames the clout of Valerie Jarrett, Obama's top White House staffer and former CTA Chairman and Robert Rifkin, former general counsel for the CTA and now general counsel for the DOT, for allowing the CTA to continue defrauding the federal government.