CHICAGO, IL – On Wednesday, November 4, the Illinois Senate Committee on State Government and Veterans Affairs continued a series of hearings to discuss the financial management practices of the Illinois Toll Highway Authority (ITHA). State Senators Jeffrey Schoenberg (D-Evanston) and Susan Garrett ( D-Lake Forest) led a series of questioning about the Authority’s public-private partnerships, capital financing methods, and the future of its contracting process.

The hearings are the result of a delinquent leasing agreement between ITHA and Wilton Partners – a Los Angeles based developer responsible for the renovation of the seven oases on the toll way system. It was revealed earlier this year that Wilton Partners owed $1.3 million in back rent to ITHA. Attorney General Lisa Madigan stepped in to address the situation when the Authority attempted to forgive the debt. In response to this issue and many more instances of ethical concern, the Illinois Inspector General has conducted a detailed investigation into the Authority’s financial practices.

“There has been a pattern of abuse at the Toll Highway Authority for many years,” Schoenberg said. “Recent resignations by board members have added to this cloud of suspicion looming over the agency. The goal of this committee is to get to the bottom of these problems. We are looking to improve the procurement process, remove any conflicts of interest, and get the Toll Highway Authority back to its primary purpose, serving the people of Illinois and its visitors.”

During the hearing, newly appointed members of the Authority’s board of directors provided testimony of previous contract processes and financial practices. The members acknowledged that although operating procedures in the past have been less than satisfactory, they are investigating these issues to ensure more transparency and prudent financial management in the future.

Members also addressed rental agreements with oases tenants, as stipulated by the lease agreement between ITHA and Wilton Partners. As part of the renovation agreement, Wilton Partners was responsible for placing tenants at the oases to provide services for motorists. This included food and fuel services. Investigation into these agreements showed that the firm was providing unethical rental agreements with certain establishments to provide a greater profit.

“As more information becomes available on this issue it appears that it is a convoluted web of insider access to contracts and money,” Garrett said. “We need to have more transparency and accountability in the contracting process.”

Earlier this year Schoenberg sponsored and passed Senate Bill 51, aimed at improving the Authority’s contracting process by creating insulated, independent procurement professionals. It also requires the disclosure of financial information and potential conflicts of interest, while prohibiting long term contracts and certain entities from bidding on the contracts.