Redflex Traffic Systems, which operates Culver City’s red light traffic enforcement program, is the subject of federal bribery investigation.
The firm, which has an office in Culver City in Fox Hills, has a seven- year contract with the city. The alleged bribery scandal in Chicago, which was uncovered by the Chicago Tribune, has caused ripples throughout the company and has cost it their number on client in North America after Chicago decided to terminate its contract with Redflex last month.
No charges or allegations of impropriety have surfaced in Culver City.
After the federal probe was revealed, the firm’s president, chief financial officer and primary legal counsel resigned.
Culver City Councilman Jim Clarke was unaware of the federal investigation until told about it by the News. He said he would consult with the City Attorney Carol Schwab to see if there are any clauses in the contract that merit further examination in light of the scandal.
“Clearly, this is something that we need to take a serious look at,” the councilman said.
According to the Redflex contract obtained by the News, it will expire in 2014.
The company stands accused of paying thousands of dollars in trips taken by a Chicago transportation official who was in charge of overseeing the Windy City’s red light camera program. The probe claims that Redflex also paid for golfing outings, meals and hotel accommodations to the transportation official.
Redflex also is accused of giving a consultant more than $2 million who then was supposed to give additional funds to Chicago transportation authorities.
Chicago Mayor Rahm Emmanuel announced last month that the city will not renew its contract with Redflex, which is set to expire in June.
Culver City Mayor Andrew Weismann said he had learned of the alleged bribery in the Tribune.
“I don’t know the full extent of the investigation but I am aware of what was recently reported in the Chicago Tribune. “(The) Culver City Police Department and city attorney’s office are monitoring events and developments in connection Redflex,” Weismann said.
“None of the conduct that is alleged to have occurred regarding Redflex in Chicago has occurred in Culver City.”
Despite no evidence of crimes committed locally, cities often chose not to associate themselves with companies embroiled in scandal.
The accounting firm Mayer Hoffman McCann had a three-year contract with Culver City for municipal and redevelopment agency auditing services before the company was investigated for their actions in the city of Bell nearly three years ago. Their failure to report inconsistencies and questionable expenditures in the southeastern Lo Angeles city led to several state investigations, the indictments and eventual convictions of four Bell ex-council members.
Several municipalities decided not to renew their contracts with the embattled accounting firm or chose to terminate them. Culver City did not renew its contract with Mayer Hoffman when it expired in 2011.
Asked if the council would take a second look at Redflex’s agreement, Weismann responded, “The City Council will consider all aspects of Redflex’s operations as part of its contract review.”
Red light cameras have been a source of controversy in many municipalities, including in Culver City. There are 20 red light enforcement cameras in operation throughout the city, according to the police department.
Culver City Police Chief Donald Pederson could not be reached for comment.