Chicago Transit Authority misrepresented bus mileage, got millions in extra fed funds, watchdog says
Cause of Action (CoA), a government watchdog group, has accused the Chicago Transit Authority (CTA) of defrauding the federal government of millions of dollars and the Obama administration of not doing anything about it.
The watchdog issued an October 18 report that “uncovered the potential of up to $150 million in taxpayer funds improperly being awarded to the Chicago Transit Authority (CTA) due to CTA’s potentially fraudulent reporting dating as far back as 1982 and possibly continuing to the present.”
Bloomberg then reported yesterday that the Federal Transit Administration (FTA), an agency of the Department of Transportation (DOT), requested that the Chicago Transit Authority revise its 2011 mileage filing.
The transit authority inappropriately reported the so-called “deadhead” miles between the bus station and the first stop, during which the buses generally carry no passengers, as “revenue-producing miles,” according to reports.
The “CTA’s gotten more money than it deserves,” Cause of Action executive director Dan Epstein told the Washington Free Beacon.
“They may have over-reported these miles with knowledge” that the reporting practices failed to comply with federal regulations, Epstein added.
The Bloomberg report indicates the federal government may have known about the over-reported miles earlier this year. The Cause of Action report suggests it may have known earlier, however.