CPS investigation comes at politically sensitive time

CHICAGO (WLS) -- The federal investigation into a no-bid contract between Chicago Public Schools and SUPES Academy comes at a crucial time for the school district.

From a political standpoint the timing of this news is crucial. Not only does the story break one week after the city election, it complicates the Chicago Public Schools' desperate effort to get financial help from Springfield.

City hall insiders say that Mayor Rahm Emanuel was blindsided by news this week that his appointed CPS CEO Barbara Byrd-Bennett is at the center of a federal investigation.

Emanuel, who would not give Bennett a vote of confidence, made his first and so far only comments on the investigation Wednesday.

"I have very little information," he said. "It's an ongoing investigation that's active as I'm standing right here."

Multiple reports say the FBI is focused on CPS's $20 million no-bid contract with SUPES Academy, an Evanston-based company that trains school administrators. Byrd-Bennett worked for SUPES before being hired at CPS.

State representative Monique Davis, a former teacher, wondered why Byrd-Bennett is being singled out when such contracts must be approved by the CPS board:

"They have attorneys there. The attorneys go over contracts. We can't just blame one person," Davis said.

Davis also said a blooming CPS scandal will give suburban and downstate lawmakers more reason not to help in the effort to bail out CPS from its $1.1 billion deficit.

"They will absolutely use it to say they don't know what they're doing with their money, they're not being fiscally responsible," Davis said. "It will not bode well, especially here where you are at budget time."

Mayor Emanuel, who promised stronger schools when he first ran in 2011, saw his first appointed CPS boss, Jean-Claude Brizard, resign in 2012 after only 17 months on the job.

Sources tell ABC7 that Byrd-Bennett has refused to resign but is being pressured to take a leave of absence until her $250,000 a year contract expires at the end of June.

Earlier this week, Governor Bruce Rauner suggested CPS' financial issues were so severe, the district might consider bankruptcy. The mayor has roundly rejected the idea.

If Byrd-Bennett does remain under investigation and on the payroll until the end of June, expect her status to be part of the debate in Springfield over how to rescue CPS.