Rahm-connected charter school exec quits after payments of state grant $$ to relatives exposed

The No. 2 executive of the United Neighborhood Organization quit Tuesday, eight days after the Chicago Sun-Times reported that the politically influential charter school operator paid state grant money to companies owned by two of his brothers. Miguel d’Escoto, who was UNO’s senior vice president of operations, resigned “by mutual agreement” in a letter submitted Tuesday evening, said the group’s CEO, Juan Rangel.

“Unfortunately, my being a member of UNO’s staff has become a distraction,” d’Escoto wrote. “I believe it is in the best interest of the organization and our community that I step down.”

“Rangel said UNO’s contracting process “followed the law. However, we want to avoid even the appearance of conflicts of interest,” said Rangel, who was a co-chairman of Mayor Rahm Emanuel’s 2011 campaign.

D’Escoto was paid $200,000 a year by UNO and had worked for it for six years, public records show. He previously was a city transportation commissioner in the administration of former Mayor Richard M. Daley.

D’Escoto’s brothers were paid with state funds under a $98 million grant UNO got to build new schools...D’Escoto Inc. has been paid more than $1.5 million so far for working as “owner’s representative” on that project and on two other UNO schools...Rodrigo d’Escoto’s company was paid about $6.7 million for work... and has a contract for about $3.1 million to help build the new high school... UNO hired d’Escoto Inc. without seeking other bids...

http://www.suntimes.com/18187719-761/uno-exec-quits-after-grant-payments-to-relatives-revealed.html