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Press Release: September 26, 2006
Congressman John W. Olver
1111 Longworth House Office Building
Washington, DC 20515-2101

Tel: 202-225-5335
Fax: 202-226-1224

FOR IMMEDIATE RELEASE
OLVER CALLS FOR HUD SECRETARY'S RESIGNATION
Report Finds Attempts at Political Favoritism by Secretary Jackson

WASHINGTON, D.C. ­ In a letter to President Bush, John Olver (D-MA), Ranking Member of the Transportation, Housing and Urban Development appropriations subcommittee, called for the resignation of HUD Secretary Alphonso Jackson after a recent report by the HUD Inspector General found that Jackson directed senior staff members to take political leanings into consideration when awarding discretionary contracts. Below is the text of the letter.

September 22, 2006

The Honorable George W. Bush
President of the United States
The White House
Washington, D.C. 20500

Dear Mr. President:

I am very concerned about Secretary Jackson's blatant disregard for the Federal Acquisition Regulation. As you know, regulations prohibit political favoritism in the awarding of government contracts. However, during a gathering of business executives in Dallas last April, the Secretary of Housing and Urban Development (HUD), Alphonso Jackson, told this group that he had denied a government contract to an individual simply because the individual was not a political supporter of your Administration.

In the aftermath of the Secretary's comments last spring, I demanded that HUDıs Inspector General conduct a comprehensive investigation into the Secretary's comments and practices. The report issued on Sept. 18th confirms that this was not a one-time fabricated story concerning the Secretary, but instead a pattern of political favoritism which is completely unacceptable, and I urge that you ask for Secretary Jackson's resignation immediately.

The Inspector General's report reveals that:

  • Several top HUD officials testified that the Secretary told senior staff at a meeting a few months before the Dallas speech that they should consider contractors' political leanings.
  • Sec. Jackson, at a senior staff meeting, "made a statement to the effect that it was important to consider presidential supporters when you are considering the selected candidates for discretionary contracts."
  • Senior HUD personnel testified that the Secretary intervened on several occasions in the contracting process. According to the report, "reviews of political contributions indicated these contractors had Democratic political affiliations."
  • Senior HUD personnel testified that the Secretary expressed a desire that no additional contracts go to a particular contractor who was not a political supporter of the President.
  • Senior HUD personnel testified that a particular contractor had a contract award subjected to an unusual amount of delay after the Secretary had stated his strong opinions about the contractor's political affiliations.
  • Senior HUD personnel testified that this particular contractor received the highest score through the competitive process. An Assistant Secretary was advised to review the competition criteria that gave rise to that result, in light of the Secretary's stated views regarding the contractor's political affiliations. Testimony showed that this review resulted in the amount of the contract award being reduced.

  • Secretary Jackson's ignorance and open hostility toward the rules that govern federal contracting is inexcusable. A fair and open process should always be the goal when awarding millions of dollars in federal funds. No public official should ever attempt to politicize the awarding of federal funds.

    I strongly believe that the time has come for you to make a tough public stand against political cronyism among Administration officials. This is about fairness and respect for American institutions.

    Sincerely,

    John Olver

    Ranking Member,

    Subcommittee on Transportation, Treasury, Housing and Urban Development, the Judiciary, District of Columbia and Independent Agencies

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