[Congressional Record Volume 140, Number 40 (Thursday, April 14, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
[Congressional Record: April 14, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
EXPRESSING DISGUST AND OUTRAGE AT REVELATION OF CORRUPTION WITHIN
DISTRICT OF COLUMBIA SUBSIDIZED HOUSING ADMINISTRATION
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from Nebraska [Mr. Bereuter] is recognized for 5 minutes.
Mr. BEREUTER. Mr. Speaker, this Member rises today as a member of the
Housing Subcommittee of the House Banking Committee to express disgust
and outrage at the revelation of widespread corruption within the
District of Columbia's Subsidized Housing Administration. Five District
of Columbia housing employees have been charged with mail fraud and
accepting bribes. These officials were allegedly involved in corruption
so widespread that nearly everyone benefiting from the District's
Housing Subsidy Program, which includes the use of Federal section 8
funds, during the last four years did so by bribing city officials.
Only 10 of 400 vouchers distributed in the recent past did not involve
bribery.
According to a spokeman for the U.S. Attorney's office ``the fact
that public and assisted housing could only be attained through bribery
was a well-known fact of life within certain segments of the
community.'' The Department of Housing and Urban Development, which is
charged with oversight and management of Federal housing funds
distributed to the District, was apparently not within these certain
segments. Indeed the housing agency of the District of Columbia has
been considered to be a badly troubled housing authority.
That this corruption could be so rampant, and go on so long, without
the Department of Housing and Urban Development's knowledge or action,
is appalling and totally unacceptable. According to news accounts, at
least one individual living in Chicago illegally received vouchers
issued by the District of Columbia under this long running scam.
Certainly, this situation confirms once again the fact that there is
widespread, endemic corruption within the government of the District of
Columbia. The Washington Post, in an editorial today, provides a litany
of the abuses of the District government uncovered only in the last
year. This Member attaches the whole editorial, but also, quotes the
Post in part:
In the past year, District residents have seen Bureau of
Traffic Adjudication workers arrested for taking bribes to
fix parking tickets and remove automobile boots. They've seen
employees arrested for stealing thousands of dollars in
quarters from city parking meters. They've read about large-
scale busts of current and former correctional officers for
smuggling drugs to inmates, and about a halfway house scandal
that bolsters the idea that the inmates are running the
jails. Residents have even seen a dozen police officers
arrested on conspiracy and drug charges. But with this week's
unfolding bribery scandal residents may just about have seen
it all.
This Member is astounded that a jurisdiction with this record of
criminal behavior by its government could even be considered for
statehood. Such a notion boggles the mind. Even beyond that, however,
the fact that this fraud extended beyond the District and half-way
across the Nation is indicative of the inability of HUD to adequately
oversee the use of Federal funds it distributes.
For years, the HUD inspector general has recognized that the
Department of Public and Assisted Housing in the District is troubled.
During that time, HUD has taken over the housing authorities in
Philadelphia, PA; East St. Louis, IL; Chester, PA; Passaic, NJ;
Bridgeport, CT; New Orleans, LA; and Kansas City, MO. It certainly is
time, if not beyond the time, for HUD to consider taking over the
District's housing program by appointing a grand master to run it or
some other approach.
Corruption of this kind hurts not just the American taxpayer, it's
first and foremost victims are those people in the District of Columbia
who have gone day after day, night after night without safe, decent
housing, because they play by the rules. It is an obvious failure of
the government of the District of Columbia that its residents have been
betrayed by their local government. Let's not have the Federal
Government betray them as well.
HUD should immediately take action to assure that corruption is
rooted out, here in the District, and anywhere else that law abiding
citizens are being victimized by those who illegally would use Federal
programs for personal profit. As the attached Washington Post editorial
says of HUD's programs ``we need honest people to administer them.''
Honest administrators--that is a simple first step that must be taken
immediately. Not only do taxpayers deserve to have their tax dollars
spent wisely and honestly, but those who truly need these housing
programs deserve to be served by honest administrators who are not
tainted by bribery or corruption. It's not too much to ask--even of the
D.C. government.
[From the Washington Post, Apr. 14, 1994]
Government That Betrays
You may recall a March 3 news story in The Post about a
woman trudging through the freezing rain with two toddlers,
one strapped to his mother's chest. They and other homeless
families had been put out of the city's overnight shelter and
were looking for a meal, some dry clothes and a place to stay
until nightfall. The story suggested that it wouldn't have
mattered if their names had been placed on the city's clogged
waiting list for affordable housing, since the city
maintained that nothing was available. Please bear that
account in mind as you digest yesterday's story about top-
level corruption in the city's Subsidized Housing
Administration and the disgusting way in which families like
hers have been wronged.
While thousands of legitimately eligible poor families have
been playing by the rules and languishing for months or years
at a time on a near-stationary waiting list for government-
subsidized rent vouchers, hundreds of ineligible families
have been bypassing the line by allegedly paying bribes
demanded by officials in the Department of Public and
Assisted Housing. According to U.S. Attorney Eric Holder,
just about everyone who has benefited from the federally
supported ``Section 8'' voucher and ``Mod Rehab'' programs
during the past four years has done so by greasing the palms
of city officials on the take. Only about 10 of 400 new rent
vouchers went to families that didn't pay bribes. The rip-off
was such a ``good thing'' that out-of-town bribers even got
in on the action. No less than the agency head is among those
charged, a career employee in place before the Kelly
administration assumed office, who was reassigned, along with
the others charged, when senior officials got suspicious and
took steps leading to the investigation. She is accused of
sending a rent subsidy voucher to her sister in Chicago. The
investigation disclosed an abuse of office and corruption on
a shocking scale and level of complicity.
Mayor Kelly said the case shows the city means business
about cleaning house. To bring real meaning to the term,
however, the city can start by rooting out all corrupt DPAH
workers and the families that weren't qualified but wormed
their way into the Section 8 program by paying off city
workers. But ending corruption can't stop with housing
programs.
In the past year, District residents have seen Bureau of
Traffic Adjudication workers arrested for taking bribes to
fix parking tickets and remove automobile boots. They've seen
employees arrested for stealing thousands of dollars in
quarters from city parking meters. They've read about large-
scale busts of current and former correctional officers for
smuggling drugs to inmates, and about a halfway house scandal
that bolsters the idea that the inmates are running the
jails. Residents have even seen a dozen police officers
arrested on conspiracy and drug charges. But with this week's
unfolding bribery scandal, residents may just about have seen
it all.
In explaining why that woman with two tiny kids had to
wander in the freezing rain until the shelters opened again
at 7 p.m., an official of the city's Office of Emergency
Shelter and Support Services spoke of the lack of affordable
housing and complained to The Post: ``We need Section 8
subsidies from HUD.'' We need more than that: We need honest
people to administer them.
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