10/17/2012 11:32 am ET

Chicago Speed Camera Bid Ousted: Reflex Booted Over Ethics Flap

The vendor considered to be a shoe-in for Chicago's red-light camera expansion contract will no longer be allowed to vie for the lucrative deal.

Redflex Traffic Systems Inc.'s bid for the contract has been tossed by the city in response to the Chicago Tribune's investigation that revealed an ethics breach that the company failed to disclose in a timely manner.

The Arizona-based firm only disclosed the $910 luxury hotel tab it paid for a city official who was overseeing its existing contract with the city after the Tribune reported on the allegations -- two years after the incident took place.

While the city accused the firm of violating the city's ethics laws and exhibiting "unacceptable behavior," the firm said in response that the incident at the heart of the ethics breach was an isolated event, according to the Tribune.

The Expired Meter reports that the ethics breach could also threaten Redflex's existing red light camera contract with Chicago as well as contracts with other cities where it does business.

Revenue from the city's speed camera expansion is central to the mayor's attempt to avoid introducing new taxes and fees in the new year amid the city's $298 million shortfall. Mayor Rahm Emanuel's budget plan banked on the cameras bringing in up to $30 million in fees.

Photo by functoruser via Flickr.