Administration -- Political Huddle At HUD

March 14, 2008

by Faiz Shakir, Amanda Terkel, Satyam Khanna, Matt Corley, Ali Frick, and Benjamin Armbruster

ADMINISTRATION

Political Huddle at HUD

The mass politicization and cronyism under President Bush has invaded several cabinet and federal agencies. The Department of Housing and Urban Development (HUD), under the leadership of Secretary Alphonso Jackson, is a prime example. Former HUD officials have described Jackson "as a passionate man who frequently threatened to fire employees for disagreeing with him." In 2006, Jackson -- a "longtime Bush friend" and former neighbor -- famously questioned, "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." HUD's former chief procurement officer was quoted as telling investigators that Jackson told her "it drives him nuts" when contractors criticized Bush but still expected government contracts. The subject of multiple federal investigations for his contracts, Jackson bore the brunt of a contentious congressional hearing this week. "This kind of stuff undermines public confidence in our officials," remarked Sen. Bob Casey (D-PA). Recently, the Washington Post reported that Jackson has honored himself with a giant photo homage in the lobbies at HUD's headquarters, many featuring Jackson with Bush.

CONTRACTS FOR BUSHIES: Jackson's conduct is part of a history of the politicization of federal agencies. Federal probes began in 2006 when Jackson said he fired a contractor who had criticized the President. Subsequently, Jackson raised suspicion when he awarded a $519,823 contract to Shirlington Limousine and Transportation Inc, the firm that disgraced defense contractor Brent Wilkes used to "transport congressmen, CIA officials, and perhaps prostitutes to his Washington parties." Jackson has publicly discussed the joy of receiving federal contracts, stating, "Once you get the contract, they just keep giving you tax dollars." According to HUD's Inspector General, Jackson " had advised senior staff, to the effect, that when considering discretionary contracts, they should be considering supporters of the President." Jackson has even admitted to a personal "bias" against Bush critics. Jackson's conduct, however, appears to be in clear violation of federal law, specifically the Federal Aquisition Reguations (48 CFR 3.101-1) which requires that "[g]overnment business shall be conducted in a manner above reproach and...with complete impartiality and with preferential treatment for none."

CONTRACTS FOR BUDDIES: In May 2007, Jackson testified to Congress, "I don't touch contracts." In retrospect, this claim appears to have been inaccurate. In October 2007, federal investigators looked into whether, after Hurricane Katrina, Jackson lined up an emergency "no-bid contract" at the HUD-controlled Housing Authority of New Orleans for "golfing buddy" and friend William Hairston. "According to HUD, the emergency contract paid Hairston $392,000 over a year and a half" for the work; Hairston's partner companies also received "direct contracts" with HUD. Columbia Residential, an Atlanta company who received a contract in New Orleans, has "significant financial ties to Jackson." The National Journal reported this month that Jackson's wife has "ties to two companies that did business with the New Orleans authority." Atlanta lawyer Michael Hollis, another Jackson friend, "appears to have been paid approximately $1 million for managing the troubled Virgin Islands Housing Authority," despite having "no experience in running a public housing agency." A "top Jackson aide" reportedly made it clear to others within HUD that "Mr. Jackson wanted Hollis" for the job. Curiously, Hollis received more than four times the salary of his predecessor.

RETALIATION FOR OTHERS: Earlier this year, Philadelphia Housing Authority (PHA) director Carl Greene alleged in a court affidavit that Jackson "called Philadelphia's mayor in 2006 to demand the transfer" of a $2 million public property to developer and friend, Kenny Gamble. Greene said Jackson's aides "followed up with 'menacing' threats about the property and other housing programs in at least a dozen letters and phone calls over an 11-month period." The Washington Post reported this week that two "top political appointees" at HUD exchanged e-mails "discussing the pain they could cause" to Greene. "Would you like me to make his life less happy? If so, how?" Orlando Cabrera, then-assistant secretary said to Kim Kendrick, also an assistant secretary. "Take away all of his Federal dollars?" responded Kendrick with a "smiley-face." HUD subsequently stripped PHA of roughly $50 million in federal funds, declaring it "in violation of rules that underpin its ability to decide precisely how it will spend federal housing funds" in September 2007. In the hearing before the Senate Banking Committee this week, Jackson complained about media "misinformation," refusing to answer questions about the incident because of an ongoing lawsuit on the alleged retaliation. "Taxpayers deserve an explanation, but the secretary provided no elucidation, not even a smiley-face," the New York Times opined.

CONGRESS -- HOUSE HOLDS GOP-SPONSORED 'SECRET SESSION' TO DELAY VOTE ON FISA BILL: Last night, the House held its sixth "secret session" in U.S. history. According to The Hill, conservatives pushed for the secret session to "delay a vote on a new Democratic FISA overhaul," raising the possibility that a wiretapping bill won't be passed until after break. This move comes one month after House Republicans staged a walkout, accusing Democrats of delaying a vote on a version of the Protect America Act that included immunity for telecommunications companies. When Democrats proposed a closed session in late February to "discuss the legal underpinnings" of Bush's spy program, Republicans rejected the idea. Minority Leader John Boehner's (R-OH) office said, "This nonsense is nothing more than another stalling tactic from a bunch of liberals who don't want to give our intelligence officials all the tools they need to keep America safe." Boehner's flip-flop underscores how the conservatives' "secret session" was not about a "candid debate" or improving intelligence gathering, but about delaying a vote on FISA.

CIVIL LIBERTIES -- FBI MISUSED 'SECURITY LETTERS' TO OBTAIN PERSONAL RECORDS OF U.S. CITIZENS: National Security Letters (NSLs) were created in the 1970s for espionage and counterterrorism investigations, enabling the FBI to secretly review customer records of suspected foreign powers in the United States without judicial approval. Earlier this month, however, FBI director Robert Mueller told the Senate Judiciary Committee that an internal Justice Department report found "improper use" of NSLs "by FBI agents seeking personal data on Americans," rather than foreigners, "during terror and spy investigations." The Justice Department released the actual reports yesterday, confirming Mueller's statement and adding that "at least once" the FBI used NSLs "to obtain records that a special intelligence-gathering court had deemed protected by the First Amendment." The abuses outlined in the latest report occurred despite changes put in place to prevent such activity after a Justice Department report last year disclosed NSL misuse from 2003 through 2005.

ADMINISTRATION -- KATRINA VICTIMS STILL WAITING FOR AID: Despite the millions of dollars that have been set aside to help victims of Hurricane Katrina rebuild, "tens of thousands of homeowners are still waiting for their government rebuilding checks, and many complain they can't even get their calls returned." However, the AP reports that ICF International, the company charged with distributing $7.5 billion in federal relief money, "has posted strong profits, gone public, landed additional multimillion-dollar government contracts -- and recently secured a potentially big raise from the state of Louisiana." ICF works with Road Home, a state-run, federally-funded program to compensate homeowners. "As of last month, 56,000 applicants -- nearly 40% of the qualified total -- had yet to receive a cent. Plagued by cost overruns and delays, Road Home is expected to cost federal taxpayers $10 billion and has become a glaring symbol of frustration in post-Katrina New Orleans." Yet ICF remains in the government's good graces: just this week, the Environmental Protection Agency awarded the company a $42 million contract "to support its clean air markets division."

Gen. David Petraeus said yesterday that "Iraqi leaders have failed to take advantage of a reduction in violence to make adequate progress toward resolving their political difference." Petraeus stated that "no one" in the U.S. and Iraqi governments feels Iraq's leaders are making "sufficient progress."

After President Bush "intervened at the 11th hour" to weaken the Environmental Protection Agency's new smog standards, "Solicitor General Paul D. Clement warned administration officials late Tuesday night that the rules contradicted the EPA's past submissions to the Supreme Court. ... As a consequence, administration lawyers hustled to craft new legal justifications for the weakened standard."

Alaska's Republican Sens. Lisa Murkowski and Ted Stevens "introduced legislation Thursday that would allow oil drilling in the Arctic National Wildlife Refuge if the price of oil hits $125 a barrel." Both senators hope "to capitalize on consumer concern" about rising gas prices.

The House and the Senate narrowly passed a $3 trillion spending plan yesterday, which would "increase spending on domestic programs like education, health care, veterans benefits and new energy technology," while allowing President Bush's tax cuts to the wealthiest Americans to expire in two years.

The media continues to repeat the false claim that President Bush sought cooperation from telecommunications companies to conduct domestic spying only after 9/11. In fact, the Bush administration approached telecommunications carriers months before 9/11.

"Anti-Semitism, including government-promoted hatred toward Jews and prejudice couched as criticism of Israel, has risen globally over the last decade, the State Department said on Thursday."

And finally: The Washington Post’s Dana Milbank writes that yesterday, conservatives were acting like "like schoolgirls whispering among themselves in class" as they plotted their "secret" session on wiretapping. "Because of my clearance level, I've seen the secret information and information at other levels as well," bragged Minority Whip Roy Blunt (R-MO), who was organizing the meeting. Rep. David Obey (D-WI), however, was not impressed. "I was here for the secret sessions," said Obey. "And given the mumbo jumbo that I heard," he added, the main purpose was "to demonstrate the total uselessness of secret sessions." Laughter erupted.

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"The House Energy and Commerce Committee approved legislation Thursday that would reauthorize research and grants to treat traumatic brain injury," benefiting "thousands of brain injury survivors who return home from combat in Iraq and Afghanistan" and about "5.3 million similarly afflicted Americans here at home."

ILLINOIS: "Soft" economy forces Mayor Richard Daley (D) to cut $20 million in spending.

NEW YORK: Incoming Gov. David Paterson (D), who is blind, inspires Americans with disabilities.

ENVIRONMENT: Several states are considering reducing plastic bag usage to help the environment.

THINK PROGRESS: President Bush says that telecoms "should be thanked for their patriotic service."

AMERICA BLOG: British Ministry of Defence commissions school lessons plans to teach students the benefits of the Iraq war.

CAMPUS PROGRESS: President Bush plans to cut funding for historically black colleges and universities.

"House Republicans had been seeking the closed session to delay a vote on a new Democratic FISA overhaul, unveiled Tuesday, and discuss its national security implications."
-- The Hill, 3/13/08

VERSUS

"There are clear rules and procedures for how Congress handles classified information. ... This nonsense is nothing more than another stalling tactic from a bunch of liberals who don't want to give our intelligence officials all the tools they need to keep America safe."
-- Spokesman for House Minority Leader John Boehner (R-OH), 2/26/08, on a secret FISA session

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Political Huddle at HUD

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