The largest electric utility in Illinois, Commonwealth Edison Company (ComEd), has agreed to a $200 million settlement with the District Attorney’s Office of the Northern District of Illinois to resolve a bribery investigation.
ComEd admitted to monetary payments and arranging jobs and subcontracts for associates of longtime Illinois house speaker, Michael Madigan, to win influence with the politician. The company also arranged jobs for political allies and workers of Madigan even if the individuals performed little or no work. ComEd has also admitted to other favors, including appointing a member to the board of directors of the company at the request of Madigan, retaining a law firm at his request, and hiring a certain number of interns from the ward where Madigan resided.
The government has entered into a deferred prosecution agreement with ComEd, where it will defer prosecution for three years and dismiss the case if ComEd continues to cooperate with the investigation, among other terms, according to a statement.
ComEd is also required to enhance its compliance program and report annually to the government about the remediation and implementation of its compliance measures.
A History of Improper Influence
ComEd began attempting to influence Madigan in 2011, continuing to 2019, to advance legislation that relaxed rate-setting supervision from the government, allowing ComEd to set higher electricity rates. ComEd admitted to a $1.3 million payout for a pair of laws that benefitted the company for about $150 million.
Madigan denies any wrongdoing and has accepted subpoenas seeking documents amid a corruption investigation. Prosecutors did not explicitly name Madigan in court filings because the politician has not been charged. A spokesperson for Madigan released a statement after court filings went public.
“The Speaker has never helped someone find a job with the expectation that the person would not be asked to perform work by their employer, nor did he ever expect to provide anything to a prospective employer if it should choose to hire a person he recommended. He has never made a legislative decision with improper motives and has engaged in no wrongdoing here. Any claim to the contrary is unfounded,” said the statement. 
Stephanie Liu is assistant editor at Internal Audit 360°