THE NATION - News from July 31, 1989

In his final days in office, Housing Secretary Samuel R. Pierce Jr. personally approved consulting contracts worth hundreds of thousands of dollars, according to Department of Housing and Urban Development officials who contend that in one case Pierce overruled lopsided opposition from department experts. The two contracts were earmarked for firms with ties to a former Pierce deputy and a prominent black Republican couple, said the officials, who asked not to be identified. Despite Pierce’s endorsement, the contracts were eventually put on hold by the new officials at HUD. Jack Flynn, a department spokesman, said both projects are being reviewed and other officials said agency experts contend the contracts are unnecessary and poorly designed.