Contractor loses government deal for not liking Bush

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Bennett Cerf
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Joined: Sat Oct 25, 2003 7:54 pm

Contractor loses government deal for not liking Bush

Postby Bennett Cerf » Tue May 09, 2006 7:26 pm

HUD secretary's blunt warning
Alphonso Jackson says deal was scuttled after contractor admits not liking Bush

Dallas Business Journal - May 5, 2006
by Christine Perez
Staff Writer

Once the color barrier has been broken, minority contractors seeking government work may need to overcome the Bush barrier.

That's the message U.S. Housing and Urban Development Secretary Alphonso Jackson seemed to send during an April 28 talk in Dallas.

Jackson, a former president and CEO of the Dallas Housing Authority, was among the featured speakers at a forum sponsored by the Real Estate Executive Council, a national minority real estate consortium.

After discussing the huge strides the agency has made in doing business with minority-owned companies, Jackson closed with a cautionary tale, relaying a conversation he had with a prospective advertising contractor.

"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."


Cal Jillson, a political science professor at Southern Methodist University, said canceling a government contract due to political views "is not a door you want to open."

"Whether or not it's legal, it certainly draws your judgment and the judgment of your office into question," Jillson said. "It's just not the tone you want to set."

Told of Jackson's comments, Mary Scott Nabers, a government-contracting consultant in Austin, had a briefer initial reaction. "Oh, my goodness gracious," she said.

Bennett Cerf
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Joined: Sat Oct 25, 2003 7:54 pm

Postby Bennett Cerf » Tue May 09, 2006 10:35 pm

It looks like this story will continue to entertain for a little while longer before Jackson is forced to resign.

DBJ article prompts calls for resignation of HUD secretary, investigation

by Jaime S. Jordan
Staff Writer

U.S. Sen. Frank R. Lautenberg, D-NJ, has called for the resignation of Secretary of Housing and Urban Development Alphonso Jackson following a report in the Dallas Business Journal that Jackson scuttled a government contract after an applicant said he didn't like President Bush.

Separately, Rep. Henry A. Waxman, D-Calif., and Rep. Barney Frank, D-Mass., citing the same story, called for an investigation of all HUD contracting decisions during Jackson's tenure.

In a story in the May 5-11 issue of the Dallas Business Journal, Jackson told an April 28 Dallas real estate forum about a meeting with a prospective contractor who'd been selected for a HUD deal. During the meeting, Jackson said, the contractor told Jackson that he had a "problem with your president."

"He didn't get the contract," Jackson told the Dallas forum. "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."

Lautenberg's press secretary, Alex Formuzis, said Lautenberg reacted with outrage to the comments made in the story.

"If those comments are in fact true, then the president should demand his resignation immediately," Formuzis said.

Formuzis said playing politics with government contracts, or denying contracts to people that aren't in support of Bush, is a violation of rights and possibly illegal.

Dustee Tucker, a spokeswoman for Jackson, told the Dallas Business Journal Tuesday that Jackson's comments at his April 28 speech were purely "anecdotal."

"He was merely trying to explain to the audience how people in D.C., will say critical things about the secretary, will unfairly characterize the president and then turn around and ask you for money," Tucker said. "He did not actually meet with someone and turn down a contract. He's not part of the contracting process."

(On May 3, Tucker told the Business Journal that the contract Jackson was referring to in Dallas was "an advertising contract with a minority publication," though she could not provide the contract's value.)

Tucker added Tuesday that Jackson is not part of the contract award process and that HUD has a senior procurement officer that oversees the process. "Politics does not play a part in who we advertise with or who we award contracts to," she said.


Meanwhile Waxman, ranking member of the House Government Reform Committee, said the Business Journal story "raises new questions about the integrity and judgment of the Bush Administration."

Added Frank, ranking member of the House Financial Services Committee: "If the report in the Dallas Business Journal is accurate -- and it is a highly respected publication -- then President Bush must repudiate these comments, reverse HUD's course and assure the American people that politics plays no role in the government contracting process."

Tucker declined to comment on the statements by Waxman and Frank.

Bennett Cerf
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Joined: Sat Oct 25, 2003 7:54 pm

Postby Bennett Cerf » Wed May 10, 2006 6:14 pm

HUD chief's talk of punishing Bush critics sparks an uproar
After Democrats call for inquiry, aide describes tale as 'a made-up story'

08:32 AM CDT on Wednesday, May 10, 2006

By TODD J. GILLMAN and SUDEEP REDDY / The Dallas Morning News

WASHINGTON – A furor erupted Tuesday over Housing Secretary Alphonso Jackson's recent suggestion that Bush critics should forget about winning government contracts.

After Democrats demanded an investigation into violations of federal procurement law and accused the administration of playing favorites, a Jackson spokeswoman said he'd made up a story about a would-be contractor who was rejected after saying he didn't like President Bush.

"It's not a true story. It's a made-up story," said Jackson spokeswoman Dustee Tucker, adding that he was only trying to make a point about how Washington works.

Mr. Jackson, former head of the Dallas housing authority, made the statement during a speech April 28 in Dallas to the Real Estate Executive Council, a national trade group for minority real estate professionals.

According to the Dallas Business Journal, Mr. Jackson was talking about contract opportunities when he told the audience about a potential advertising contractor who had sought a deal with the Housing and Urban Development department for 10 years.

"He made a heck of a proposal ... so we selected him," Mr. Jackson said. But then, he said, the man told him, "I don't like President Bush."

"He didn't get the contract," Mr. Jackson reportedly said. "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."

Two top-ranking House Democrats, Reps. Henry Waxman of California and Barney Frank of Massachusetts, urged Mr. Bush to repudiate Mr. Jackson's comments and demanded documents pertaining to the contract. Sen. Frank Lautenberg, D-N.J., wrote Mr. Bush calling for Mr. Jackson's resignation. "Government contracts must be based on merit, not on political favoritism," he said.

That was before Ms. Tucker said Mr. Jackson had made up the story.
A White House spokeswoman referred inquiries to HUD.

When first asked about the episode Tuesday, Ms. Tucker spoke as if the contractor existed, saying he had approached Mr. Jackson "trashing, in a very aggressive way" him and the president. Later, she said that she had conferred with Mr. Jackson and that the story wasn't true.

She conceded that the audience might not have realized that because "he did not preface the story by saying 'this is a hypothetical.' "

Rod Bailey, the Dallas real estate executive who organized the event, declined to comment on whether he thought Mr. Jackson was recounting an actual event.

Ms. Tucker said the secretary was "absolutely not" suggesting that anyone had been denied a contract based on political views.

"The message that he was sending was that in Washington, D.C., some people will come in, trash you, trash the president, and then ask you for money," she said, adding that HUD routinely buys ads in publications that are "openly critical of the administration," such as Jet and Ebony.

"We advertise with those who are best going to reach our target audience," she said. "The purpose of the story wasn't to say this is a warning to you."

It's not the first time Mr. Jackson has caused a stir. When he was the No. 2 HUD official, he angered union officials by threatening a "whupping" to motivate workers. Last month, he angered housing advocates by suggesting that only the "best" residents should return to public housing in New Orleans.

Bennett Cerf
Posts: 738
Joined: Sat Oct 25, 2003 7:54 pm

Postby Bennett Cerf » Wed May 10, 2006 6:17 pm

I particularly like how someone saying "I have a problem with your president" and "I don't like President Bush" turns into "trashing, in a very aggressive way" before Jackson's spokeswoman changes her story entirely.

czeskleba
Posts: 235
Joined: Sat Feb 14, 2004 12:02 am

Postby czeskleba » Wed May 10, 2006 9:06 pm

Now we need the contractor to come forward and identify himself. That would be cool.

I'm sure this kind of thing happens all the time, but how stupid is it for Jackson to actually publicly declare that this is how he is making decisions?

Bennett Cerf
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Joined: Sat Oct 25, 2003 7:54 pm

Postby Bennett Cerf » Fri Sep 22, 2006 7:17 pm

EXCLUSIVE: Agency Report Shows Secretary Personally Blocked Contracts To Democrats

In April, Housing Secretary Alphonso Jackson told a group of real estate officials that he once canceled a government contract because the contractor was critical of President Bush. Awarding contracts based on political leanings “violates federal law.” Jackson is a “longtime Bush friend” and former neighbor in Dallas, Texas.

The Inspector General for the Department of Housing and Urban Development has conducted a detailed investigation and produced a 340-page report detailing his findings. The agency has given a copy to Jackson, but refused to release the report to the public.

ThinkProgress has obtained the executive summary. Here are some key excerpts:

– “During the investigation, Secretary JACKSON’s Chief of Staff, as well as the HUD Deputy Secretary testified that, in a senior staff meeting, JACKSON had advised senior staff, to the effect, that when considering discretionary contracts, they should be considering supporters of the President, language consistent with the remarks made by JACKSON in Dallas, Texas, on April 28, 2006.”

– “Investigation did disclose some problematic instances involving HUD contacts and cooperative agreement grants, in particular, the cooperative agreement award issued to Abt Associates…was blocked for a significant period of time due to Secretary JACKSON’s involvement and opposition to Abt. Secretary JACKSON’s Chief of Staff testified that one factor in JACKSON’s opposition to Abt was Abt’s political affiliation.

– “Secretary JACKSON’s Chief of Staff also identified other instances of Secretary JACKSON intervening with contractors whom he did not like. Reviews of political contributions indicated these contractors had Democratic political affiliations.


Rep. Henry Waxman (D-CA) and Sen. Frank Lautenberg (D-NJ) have already called on Jackson to resign immediately. The White House yesterday gave him “a tepid vote of confidence.”

We’ve posted the full text of the report’s executive summary HERE.

Bennett Cerf
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Joined: Sat Oct 25, 2003 7:54 pm

Postby Bennett Cerf » Sun Mar 30, 2008 11:26 pm

Bennett Cerf wrote:It looks like this story will continue to entertain for a little while longer before Jackson is forced to resign.


Better late than never, I guess.

HUD Secretary Expected to Quit
By DAMIAN PALETTA and MICHAEL M. PHILLIPS
March 31, 2008; Page A2

WASHINGTON -- Housing and Urban Development Secretary Alphonso Jackson is expected to announce his resignation Monday, according to people familiar with the matter, a decision that will deal a blow to the Bush administration's efforts to tackle the housing crisis.

The exact reasons for Mr. Jackson's decision couldn't be learned. Earlier this month, two Democratic senators, Patty Murray of Washington and Christopher Dodd of Connecticut, sent a letter to President Bush urging him to request Mr. Jackson's resignation, arguing that accusations of wrongdoing had made him ineffective.

The department has scheduled an announcement for 10 a.m. Asked if Mr. Jackson was planning to resign, HUD spokeswoman DJ Nordquist said she was "not at liberty to say what the announcement is."

Mr. Jackson, a former top housing official in Texas, Washington, D.C., and Missouri, has consistently denied any improper behavior while leading HUD. Still, his poor relationship with Democrats has hurt the White House's efforts to broker deals in response to the housing crisis. For example, Democrats have criticized the way he handled public housing after Hurricane Katrina, an issue that has dogged him ever since.

HUD, usually out of the spotlight among the federal agencies, has been at the heart of the administration's attempts to ease problems for homeowners. Mr. Jackson has been the junior partner to Treasury Secretary Henry Paulson in that effort. At events, the HUD secretary generally stressed the human cost of the nation's housing-induced financial woes, while Mr. Paulson handled the technical details.

The two also announced Hope Now, an industry-led effort to refinance struggling homeowners, one of the administration's most trumpeted efforts thus far.

HUD runs the Federal Housing Administration, a big government division that insures mortgages for low-income homeowners and first-time home buyers. Many Democrats and Republicans have envisioned expanding the FHA to play a bigger role in stabilizing the mortgage market. The FHA would also be at the center of a HUD plan to provide partial insurance to homeowners who owe more money on their mortgages than their homes are worth.

Mr. Jackson's most-recent problems stem from a Philadelphia redevelopment deal. The city's housing authority has filed a lawsuit charging that Mr. Jackson tried to punish the agency for blocking a deal involving a friend of his. The allegations came up during congressional hearings this month. Mr. Jackson declined to answer questions, saying the judge in the lawsuit had instructed the department not to talk.

HUD has argued it wants to change the housing authority's special funding status because it lacks enough housing for the disabled.

In 2006, HUD's inspector general investigated remarks made by Mr. Jackson that some interpreted to mean that contracts were awarded in some cases based on political affiliation. The report didn't find any wrongdoing at the agency.

"Why should I reward someone who doesn't like the president, so they can use funds to try to campaign against the president?" Mr. Jackson was quoted as saying in the Dallas Business Journal. "Logic says they don't get the contract. That's the way I believe."

Mr. Jackson's remarks elicited a firestorm of controversy on Capitol Hill. Afterward, in a statement from HUD, Mr. Jackson said, "I deeply regret the anecdotal remarks I made at a recent Texas small-business forum and would like to reassure the public that all HUD contracts are awarded solely on a stringent merit-based process."

Mr. Jackson joined the administration in June 2001 as HUD deputy secretary and chief operating officer. He was confirmed as secretary in 2004. Prior to joining the administration, he was president of a utility company based in Austin. He also served as president and chief executive of the Dallas Housing Authority during then-Gov. Bush's first term.