KATRINA AFTERMATH - Questionable Contracts
Edward T. Pound, National Journal - Oct. 4, 2007 -
http://news.nationaljournal.com/articles/071004nj2.htmIn April last year, Housing Secretary Alphonso Jackson traveled to Dallas to deliver a speech to a group of minority real estate executives. The event should have been pretty routine stuff. But Jackson -- and these are his words -- shot off his mouth by describing how he believed contracts should be awarded by the Department of Housing and Urban Development. The secretary recalled, for instance, how he once had killed a contract award because the contractor had disparaged his friend President Bush.
......... Democratic lawmakers, citing concerns about political favoritism in HUD contract awards, called for an investigation by the department's inspector general. ........
HUD Inspector General Kenneth Donohue launched an investigation. In September 2006, Donohue rendered his verdict in a lengthy report: Although Jackson had, in fact, urged senior aides to consider the political views of contractors in doling out department business, "no direct evidence" linked political favoritism to such awards ......
....Donohue's investigators are now working with the FBI, a federal grand jury in Washington, and prosecutors from the Justice Department's Public Integrity Section. The investigation appears to focus, in part, on whether Jackson misled Congress when he testified earlier this year that he had never intervened in awarding HUD contracts. "I don't touch contracts," the HUD boss told a Senate panel on May 3.
Investigators are exploring whether Jackson, despite that testimony, had actually lined up a contract at the HUD-controlled Housing Authority of New Orleans, or HANO, for a golfing buddy and social friend from Hilton Head Island, S.C. The friend, William Hairston, was paid more than $485,000 for working at HANO during an 18-month period, according to figures provided by HUD and a former HANO official. The work was not competitively bid.
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