Robert L. Ehrlich, Jr. statement, March 10, 1995

MAR- 10- 1995 17=30 FROM CONG. EHRLICH TO 9- 1 410 337 0021 P.02 ROBERT L. EHRLICH. JR. COMMITTEES Congress of tfje fHniteb States House of BEpriSentattoes mffitmgton. S£ 20516-2002 BANKING AND FINANCIAL SERVICES * FOR IMMEDIATE RELEASE: March 10, 1995 Government Building Dundalk, MD 21222 CONTACT: Richard Cross611^EACTEBNAvCNUt Steve Kreseski 202-225-3061 STATEMENT BY REP. ROBERT L. EHRLICH, JR. REGARDING BALTIMORE HOUSING AUTHORITY’S VIOLATION OF HUD RULES BY AWARDING HIGH BID CONTRACT I am deeply troubled by the latest chapter in the ongoing tale of abuse of federal housing funds by the Baltimore Housing Authority. BHA’ s decision to award a high bid contract to the Nation of Islam Security Agency using U. S. Department of Housing and Urban Development funds— at an extra cost of $1.1 million— is a flagrant violation of federal regulations and a slap in the face to the American taxpayer. BHA Commissioner Daniel Henson must move swiftly to review this award to ensure that his agency is in fell compliance with the law. At a time when “less is more” has become the policy mantra of Washington-and some federal departments, including HUD, have been targeted for downsizing or elimination— the reports of serial abuse of taxpayers fends at BHA could not have come at a less favorable time. Right now the Government Reform and Oversight Committee, on which I sit, continues to conduct a broad investigation into HUD funding of local housing projects— including the situation in Baltimore City. The Housing and Community Opportunity Subcommittee of the Banking and Financial Services Committee, of which I am also a member, will be holding its own hearings into the HUD contracting and procurement process in the near future. The activities of the Baltimore Housing Authority will play a prominent role in our investigation i TOTAL P.02