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Former Cleveland schools CEO Barbara Byrd Bennett, now the CEO for Chicago's public school district, is the subject of a federal probe in Chicago.

(Lonnie Timmons III, Plain Dealer file photo)

Former Cleveland Schools CEO Barbara Byrd-Bennett is the subject of a federal probe in Chicago.

Federal authorities are investigating Byrd-Bennett, who is now the Chicago Public Schools CEO, over a $20.5 million contract the district awarded on a no-bid basis to a training academy that formerly employed her, The Chicago Tribune is reporting.

The Chicago Schools' inspector general's office began an investigation into the contract with suburban Chicago-based SUPES Academy and Byrd-Bennett's relationship to the company in 2013, a source told The Chicago Tribune. The U.S. attorney's office then started its own probe, and a grand jury has been reviewing evidence for at least a year, the source said.

The inspector general's investigation was spurred by an investigation by Catalyst Chicago, a publication that covers education issues, that detailed Byrd-Bennett's connection with the for-profit SUPES Academy, Catalyst Chicago is reporting.

Chicago Mayor Rahm Emanuel appointed Byrd-Bennett in October 2012. She makes a base salary of $250,000 annually as part of a contract that expires June 30, Catalyst Chicago reported.

Byrd-Bennett had worked as a coach for SUPES until she was hired at Chicago Public Schools and there's some evidence she continued to consult with related companies after she was on the school district's payroll, Catalyst Chicago is reporting. In June 2013, the Chicago school board quietly awarded SUPES the $20 million contract, which was the largest no-bid contract in the district's recent history, according to Catalyst's review of board reports.

Inspector General Nick Schuler declined to comment Wednesday on whether the investigation is ongoing or on the inquiries from the federal government.

Byrd-Bennett led the Cleveland Schools from 1998 to 2006. In Cleveland, her use of private donations on expensive hotels and fancy restaurants led to a state audit. The audit found no wrongdoing but recommended the district keep a tighter watch on spending, The Chicago Tribune reported. But also in Cleveland, Byrd-Bennett was credited with straightening out finances, improving test scores and raising the high school graduation rate.

Byrd-Bennett's contract was supposed to automatically renew for an additional year after its June 30 expiration unless the board notified her otherwise by March 1. Catalyst Chicago reported it has been asking the Chicago Schools since March whether Byrd-Bennett's contract would be renewed automatically. As of Tuesday morning, a district spokesman said he was still looking into whether she planned to stay on, Catalyst Chicago reported.

The Chicago Tribune reported she attended a regularly scheduled meeting at district headquarters Wednesday and remains in her post. Byrd-Bennett could not be reached for comment Wednesday, The Chicago Tribune reported.

CPS officials have discussed the possibility of appointing an interim CEO depending on the outcome of the investigation, a source told The Chicago Tribune.

CPS signed its initial contract with SUPES for leadership training not long after Byrd-Bennett took office. Byrd-Bennett had worked for the company before joining CPS as a consultant in April 2012, The Chicago Tribune reported.

A spokesman for SUPES Academy said federal authorities have "obtained records and files" from the company for the investigation, according to The Chicago Tribune.

The federal investigation was first revealed Wednesday by Chicago Schools officials in a release that offered few details. The district said authorities have requested interviews with several district employees, The Chicago Tribune reported.

David Vitale, president of the Chicago Board of Education, said in a statement the district was made aware of the investigation Tuesday.

"We take any allegation of misconduct seriously, and we are fully cooperating with investigators who requested that we not discuss any specifics regarding the ongoing investigation," Vitale said, according to The Chicago Tribune.

At a news conference Wednesday, Emanuel was asked about the investigation and repeated much of what was in the CPS statement, saying that he did not have additional information, The Chicago Tribune reported.

The mayor said he did not know if federal investigators had spoken to Byrd-Bennett, according to The Chicago Tribune. Asked if he had confidence in the schools chief, even given his professed lack of information on the investigation, Emanuel said, "I can't answer, I don't even know who they are looking at."