Redflex Traffic Systems’ Woes Continue
First, the Chicago Tribune gets hold of some internal company documents which shows the former Chicago Department of Transportation manager in charge of the red light cameras received some free hotel accommodations. Chicago Mayor Rahm Emanuel disallowed the city’s current red light camera vendor from bidding on the new speed camera contract. A shocking turnaround for the company that seemed a sure bet for that contract.
More recently, the Tribune reported even more unethical behavior. Emanuel struck again and disallowed Redflex from rebidding the red light camera contract–a contract the company has held for ten years, since the program’s inception. The Chicago contract accounted for 13% of total company revenues.
Since then, things have continued to flow downhill.
After the Trib story, the company’s stock has plunged to half it’s value in a handful of days and now trades at around $1 a share on the Australian Stock Exchange.
Late last week Redflex fired a long time Vice President named Aaron Rosenberg, who allegedly has first hand knowledge or participated in some of the company’s bad behavior in Chicago according to the Chicago Tribune. In fact, the company has filed suit against Rosenberg claiming he misappropriated funds from Redflex.
The Daily Herald reports Redflex’s problems in Chicago has raised the eyebrows of suburbs who use the company for RLC enforcement in their towns. These problems, the story implies, may affect contract renewals in Carol Stream, Gurnee and Aurora.
The Redflex scandal in Chicago has been bad for the entire automated camera industry in general. The Chicago City Council is planning on having hearings on the city’s RLC program in a few months. News organizations have jumped on the anti-camera bandwagon and have put RLC enforcement under the microscope.
Not only did NBC News broadcast a national piece on red light cameras, but Fox News will reportedly air a similar story on Tuesday.