HUD takes a hit for cronyism

Everyone learns about the spoils system in jr. high history, but what a great opportunity for kids to see a real-life example. Less than a week after reports that Iraq contracts were handed out only after hopefuls passed a Republican loyalty test, a report finds that the same mentatlity guided Bush's department of Housing and Urban Development.

Top aides to Housing Secretary Alphonso Jackson testified that they and other senior staff members were advised to take political leanings into consideration when awarding discretionary contracts, according to an internal report issued by the Department of Housing and Urban Development's inspector general. (. . .)

The inspector general's investigation was launched following an exclusive Dallas Business Journal report on comments Jackson made at an April 28 real estate gathering in Dallas. At the private event, Jackson, former president and CEO of the Dallas Housing Authority, told attendees he canceled a contract with a contractor who had criticized President Bush.

"Why should I reward someone who doesn't like the president, so they can use the funds to try to campaign against the president?" Jackson said at the event. "Logic says they don't get the contract. That's the way I believe." (. . .)

In an executive summary of the inspector general's report, investigators found that "the substance of the remarks by Secretary Jackson were partly true." Based on testimony by Jackson and others, such an encounter took place in the lobby of HUD headquarters between an African-American male and then-Deputy Secretary Jackson, and this incident formed the basis of the story Jackson relayed to attendees at the Dallas real estate event. However, the investigation found no evidence that a contract was canceled as a result, and the contractor in question said he had not been, or did not recall being, involved in the encounter, according to the summary report.

It's an odd sort of story. While it's acknowledged that cronyism was the standing rule, the report minimizes the impact it might have had. Then again, HUD produced the report themselves.