Pena Cleared of Charges He Meddled in Pact

Federal investigators have cleared former Transportation Secretary Federico Pena of allegations that he improperly intervened in a Coast Guard contract. The Justice Department said it would not prosecute.

An inquiry by the Transportation Department’s inspector general found that Pena had no involvement in the contract, the Justice Department said in papers filed Friday in U.S. District Court.

The Justice Department said it would not proceed against Pena and another department official, Luz Araoz Hopewell, in the case.

A whistle-blower had complained that Pena and other officials had improperly intervened in an effort to get a contract restored to a Fort Lauderdale, Fla., company after the deal had been canceled.

Questions about the charges became public at Pena’s confirmation hearing to become secretary of Energy. A confirmation vote was delayed, though Senate sources had said it was unlikely the controversy would prevent approval.

The Justice Department said the accusation had been based on an incorrect belief that Pena had met with the owner of the company and then brought pressure on Coast Guard officials to restore the contract. The Coast Guard is part of the Transportation Department.

The inspector general also cleared Hopewell.