Monday, January 20, 2014

Is Chicago-style crony capitalism at play in the Accenture/Obamacare website deal?

Illinois Review reports:
The term "crony capitalism" describes a system in which success in business depends on close relationships between business people and government officials, resulting in an unfair distribution of government contracts, legal permits or even special tax breaks.

Chicago-style "crony capitalism" may very well have been at play in the recent decision to award the new Obamacare website contract to Chicago's Accenture, which employed at least two individuals who played critical roles in the Obama campaigns.

Two weeks ago, the Obama Administration announced that the federal contract to administer would not be renewed with Canada's CGI. Instead, the $90 million contract would be awarded to Accenture - a technology company with offices in Chicago - located only four blocks away from Obama's 2008 and 2012 election campaign headquarters.

Two prominent Accenture-linked Chicagoans who either work now for the company, or have in the immediate past, also have very close to President Obama -- Obama Campaign's Chief Scientist Rayid Ghani and Accenture Senior Manager and Technology Executive Tracey Patterson.

Was the contract with Accenture affected by these two Obama campaign insiders?
Small world!