Remember when HUD Secretary Alphonso Jackson touched off a flap last year by telling a minority business organization that he had cancelled a federal contract because the prospective contractor didn’t like George Bush? As the Dallas Business Journal recounted, Jackson told the group:
“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 later insisted the story was purely apochryphal and HUD’s Inspector General Kenneth Donohue cleared him in his investigation of the matter. But now comes a report from National Journal that:
Federal investigators are once again on Jackson’s trail. And this time, the investigation seems more serious. 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.