Pena on Former Investment Firm

* Re “Hiring of Pena’s Ex-Firm in L.A. Raises Questions,” Feb. 10:

David Willman’s article raised precisely the kinds of potential conflicts of interest that I anticipated and addressed when I decided to become U.S. secretary of transportation. Before taking office, I completely severed all ties with my old investment firm, selling my interest in the company at a financial loss and recusing myself from any business that the firm had at that time. These actions were consistent with the counsel I received from government ethics advisers. I have taken every appropriate measure within my control to avoid potential conflicts.

Furthermore, the Los Angeles Metropolitan Transit Agency has not received any special or favorable treatment from DOT during my tenure. To the contrary, when problems became apparent during subway tunnel construction in the fall of 1994, the Federal Transit Administration suspended federal funding of the project. This led to significant changes in the financial, government and construction oversight that will better protect the federal interest.

Finally, the federal government’s support for LAMTA is a continuation of the commitments first made in the 1980s under the Reagan Administration. Congress specifically set forth the dollars amounts and timetables for L.A. Metro construction in the 1991 Transit Act.

Since becoming secretary, the U.S. Department of Transportation has approved over $5.5 billion for major transit projects in Los Angeles and 14 other cities. Properly managed, I strongly believe these transit projects are good public investments--providing greater mobility to people, reducing highway congestion and air pollution and spurring economic development.

And whether it is taking the initiative on the reconstruction of earthquake-damaged freeways or providing ongoing support for the area’s airports, seaports, highways, rail and transit systems, I will continue to pay particular attention to the Los Angeles transportation system--the nation’s largest and most complex.

FEDERICO PENA

Washington