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NATION : Justice Dept. Asks Pierce Prober to Expand His Investigation

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From Times Wire Services

The Justice Department today asked the independent counsel investigating former Housing Secretary Samuel R. Pierce Jr. to expand his investigation after fresh allegations of political favoritism at the agency.

Atty. Gen. Dick Thornburgh made the request in a May 25 letter to independent counsel Arlin M. Adams. A copy of the letter was released today by the Justice Department after it was received by Adams.

In his letter, Thornburgh asked the court-appointed independent counsel to review allegations of favoritism in the operation of the Department of Housing and Urban Development’s Urban Development Action Grant Program and the Secretary’s Discretionary Fund for technical assistance and special projects.

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The request was based on a review of testimony recently given to a House subcommittee by DuBois Gilliam, former deputy assistant HUD secretary for program policy development and evaluation.

Adams was appointed by a special court earlier this year to investigate allegations that Pierce and top aides defrauded the government by awarding grants on the basis of political favoritism between 1984 and 1988.

Democrats in Congress have repeatedly asked Thornburgh to expand the scope of Adams’ jurisdiction.

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