HUD Secretary Is Investigated Over Friend’s Contract The FBI is investigating whether HUD Secretary Alphonso Jackson lined up a sole-source contract for a friend and lied to a Senate committee about it, the magazine National Journal reported. Jackson’s friend, William Hairston of Hilton Head, SC, acknowledged that he was hired as a construction manager by the Housing Authority of New Orleans, which is managed by HUD. Hairston told the magazine Jackson helped him get the job to assist the Housing Authority in recovery from Hurricane Katrina. He was paid $485,000 over 18 months ending in June, according to the report. In a statement to the Journal, HUD said an official of the New Orleans agency asked Jackson for help with construction management, and Jackson suggested three names. But Nadine Jarmon, who was then HUD’s appointed receiver at the housing authority, told the Journal someone in the secretary’s office approached the agency about hiring Hairston. The Journal said a federal grand jury in Washington has subpoenaed Housing Authority records relating to Hairston. Federal investigators would not comment. Last year Jackson told an audience in Dallas that he had blocked a contract to a business owner who opposed President Bush. Days later he backtracked, saying he had made up the story and never got involved in contracting decisions. (SAA, 5/19/2006) HUD’s inspector general found that Jackson urged his staff to favor President Bush’s supporters in awarding contracts, but the IG said there was “no direct evidence” that the secretary had intervened in any contracting decisions. At a May 3 Senate hearing, Jackson testified, “I do not interfere with any contract that is given in HUD — period.” He was questioned by Sen. Frank Lautenberg, D-NJ, one of several members of Congress who called for his resignation after the Dallas incident. At the time of the hearing Hairston was working for the Housing Authority of New Orleans.