Beggs Steps Aside to Fight Fraud Charges

President Reagan “reluctantly” agreed to relieve NASA Administrator James M. Beggs of his duties pending disposition of charges that Beggs defrauded the government while an official of General Dynamics Corp., the White House announced today.

In a brief written statement, presidential spokesman Larry Speakes said Beggs asked Reagan to be granted a leave of absence and the President agreed.

It was not immediately clear whether Beggs would continue to be paid pending trial on the felony indictment announced Monday in Los Angeles.

Will Aid Transition

“While reluctantly acceding to the request, the President has asked Mr. Beggs to assist temporarily in the orderly transition of his responsibilities to his colleagues at NASA to facilitate continuity of management at this critically important agency,” the statement said. “Mr. Beggs has agreed to do so.”

Speakes said the space program “has been revitalized” under Beggs’ leadership, and “this important record must be continued.”

Just hours after Monday’s indictment, Beggs had said he wouldn’t resign from NASA.

But Tuesday morning at the White House, Speakes told reporters that Reagan, who appointed Beggs in 1981, “believes Mr. Beggs will do the right and proper thing as far as his government service is concerned.”

Acting Administrator

An Administration and a congressional source said the acting NASA administrator would be Dr. William R. Graham, a California research executive who became deputy administrator only last week.

As a result of Monday’s indictment, the federal government on Tuesday suspended General Dynamics, the nation’s third-largest defense contractor, from receiving any new government contracts for at least 30 days. (Story on Page 12.)

Beggs is the fifth high-ranking Reagan Administration official to face criminal charges involving his work before entering government service.