Republican cronyism cancels contracts from non-Bush supporters

Bush's Top U.S. Housing Official Blocked Contract, Report Says

By Neil Roland

Sept. 22 (Bloomberg) -- The Bush administration's top housing official temporarily blocked a federal contract with a Massachusetts firm because of its political affiliation and for personal reasons, senior U.S. Housing and Urban Development aides told investigators.

HUD Secretary Alphonso Jackson, a member of President George W. Bush's Cabinet, also urged aides to favor friends of Bush when awarding contracts, a report by the agency's inspector general said. The report cited the sworn testimony of Jackson's aides including his chief of staff, Camille Pierce, a lawyer who has worked for Jackson on and off since the 1980s.

The investigation found “no direct evidence'' that political favoritism actually played a role in specific grants or contracts, according to an executive summary of the 340-page report.

Jackson, who was head of the Dallas Housing Authority while Bush was governor, told investigators that his opposition to a contract for Abt Associates in Cambridge, Massachusetts, stemmed from the quality of the firm's work. The report said Jackson's statement, tape recorded and given under oath, is “rendered problematic by other testimony and evidence.''

In a prepared statement today, Jackson said, “No contract has been cancelled, rescinded, terminated, awarded or not awarded due to the personal or political benefits of the recipient.''

Jackson, 61, blocked the 2005 HUD contract with Abt “for a significant period of time,'' the report said. He has been HUD secretary since March 2004 and was appointed deputy secretary of the agency in June 2001.

Support
The Bush administration today expressed support for Jackson in response to Democratic lawmakers' calls for the secretary's resignation and for a Justice Department investigation.

“President Bush supports Secretary Jackson and appreciates his efforts to provide affordable housing and economic development opportunities for all Americans,'' White House spokeswoman Emily Lawrimore said in a prepared statement.

Federal procurement laws prohibit rewarding or punishing contractors on the basis of their political views.

“We must not allow taxpayer-funded contracts to be handed out to political allies as rewards for loyalty,'' said Representative Henry Waxman, a California Democrat.

Pierce, who has been Jackson's chief of staff since March 2003, wasn't available for comment, HUD spokesman Jerry Brown said. Abt spokesman Peter Broderick didn't respond today to requests for comment.

The investigation followed Jackson's boast during an April speech in Dallas that he had blocked an advertising contract because the contractor criticized Bush. Investigators found no evidence Jackson had interceded on the contract.

“I lied, and I regret having done that,'' Jackson is quoted as saying in the report.

In a statement issued today, Jackson said, “I sincerely regret my April 28 remarks that led to this investigation.''

The results of the inquiry, which hasn't been officially released by HUD, was reported today by the Washington Post.

HUD inspector general spokeswoman Helen Albert declined comment.

A word from Dot Calm: "Aside from being an interesting read, THIS PRACTICE IS ILLEGAL! Here’s another quarter heard from ..."

From Think Progress
Housing Secretary Canceled Contract Because Contractor
Criticized Bush, Apparently Violating Law

Secretary of Housing and Urban Development Alphonso Jackson publicly admitted that he canceled a government contract with a business because the CEO was critical of President Bush. From the Dallas Business Journal:

“He had made every effort to get a contract with HUD for 10 years,” Jackson said of the prospective contractor. “He made a heck of a proposal and was on the (General Services Administration) list, so we selected him. He came to see me and thank me for selecting him. Then he said something … he said, ‘I have a problem with your president.’

“I said, ‘What do you mean?’ He said, ‘I don’t like President Bush.’ I thought to myself, ‘Brother, you have a disconnect — the president is elected, I was selected. You wouldn’t be getting the contract unless I was sitting here. If you have a problem with the president, don’t tell the secretary.’

“He didn’t get the contract,” Jackson continued. “Why should I reward someone who doesn’t like the president, so they can use funds to try to campaign against the president? Logic says they don’t get the contract. That’s the way I believe.”

Jackson’s conduct appears to be in violation of federal law. From the Federal Acquisition Regulations, 48 CFR 3.101-1:

Government business shall be conducted in a manner above reproach and, except as authorized by statute or regulation, with complete impartiality and with preferential treatment for none. Transactions relating to the expenditure of public funds require the highest degree of public trust and an impeccable standard of conduct.

Jackson has admitted that this particular contract was not awarded with “impartiality.” The business that would have been awarded the contract was excluded because of the contractor’s political views.

The Competition in Contracting Act (41 U.S.C. 253(b)(1)) details the six circumstances in which a particular contractor can be excluded. Needless to say, political views are not on the list.

It is also highly unusual for a cabinet secretary to be involved in the awarding or cancellation of a particular contract.