European Stars and Stripes (Newspaper) - March 12, 1993, Darmstadt, Hesse                                Reports warn of possible Hud scandal by the new York times Washington a four years after the department of housing and Urban development became a Symbol of inept government and graft reports have warned that the department s management systems remain out of control and that Quot another Hud scandal is a distinct  the reports say problems in staffing data systems and accounting controls Are leading to the misuse of hundreds of millions of dollars leaving the department with an Uncertain grasp of More than $1 trillion in financial commitments. A confidential report prepared by president Clinton s transition team said mismanagement at Hud was Quot Clear and devastating Quot and that it Quot opens the door to the systematic plunder of Many millions of taxpayer  it also said the problems would take Quot literally years to surmount and warned that they could hamper the Clinton administration s plans for economic  he existing business of the department 19 in bad  a housing Secretary Henry g. Cisneros the document offers few examples of projects gone awry but in the past year congressional investigators have produced graphic ones. They found department programs giving a Low inter Cost loan to a saudi Sheik spending $3 million to renovate housing built on a toxic waste dump in Florida and paying More than $5 million in rent subsidies to the Philadelphia housing authority for buildings that had been destroyed years earlier. Speaking of the weak financial safeguards in a de e ailment that spends $25 billion a year and stands be ind hundreds of billions of dollars in mortgage guar it enhances your chances of not making the next  Jack Kemp the previous housing Secretary was widely credited with improving the ethical environment he inherited from Samuel r. Pierce or. In a wave of scandals concerning favouritism to politically connected consultants. No one is suggesting that Hud now is Rife with corruption. But the reports warn that it lacks the management systems to prevent and detect such abuses. Cisneros praised Kemp s emphasis on ethics and said most of the problems began before Kempis watch. But he also said Kemp had been attracted to Quot ideologically attractive themes Quot like the Sale of Public housing while Quot there was some inattention Quot to Basic management. A the existing business of the department is in bad shape Quot Cisneros said. Kemp could not be reached wednesday but a spokesman Bill dal col said Cisneros was criticizing his predecessor to protect himself in Case a scandal Breaks out in his tenure. In the stars and stripes h 10years ago March 12,1983 a a move to repeat tax withholding on dividends and interest threw the Senate into disarray and prompted a veto threat As debate ended on the $3.7 billion recession Relief Bill. 20years ago March 12,1973 a the common Market virtually abandoned its attempt to solve the monetary crisis by linking nine West european currencies in a joint float against the Dollar and japanese yen. 30years ago March 12,1963 . Defense Secretary Robert s. Mcnamara told Congress that if the soviets sent in More troops in response to an uprising in Cuba he would consider such action a an invasion."40 year Sago March 12,1953 a . Ambassador George Wadsworth protested to czechoslovakian attack by its air Force planes on two american jets Over West germany.50 year Sago March 12,1943 a up to 2,000 factories have been smashed and a million germans made homeless by recent Royal air Force raids. World War ii the world War ii summary for March 12 was unavailable for this  leak leaves 4 dead 2 Hurt Greeley Colo. A four family members died of Carbon monoxide poisoning at Home and two surviving boys were critically Hurt police said thursday. The dead were identified ased Ferguson 29 his wife Erlinda 29 his Mother Jesusita Ferguson age unknown and an unidentified child relative. Two Ferguson boys 12-year-old Eddie or. And 11-year-old Patrick were listed in critical unstable condition. First lady s health care task Force must meet in Public judge rules Washington a a Federal judge wednesday limited the authority of president Clinton s health care task Force to hold closed meetings because it is headed by private citizen Hillary Rodham Clinton. Until Clinton sends Congress a formal charter for the task Force including its projected Cost any meetings would be illegal under the 1972 Federal advisory committee act said . District judge Royce c. Lambert the Law covering presidential committees forbids closed meetings if they include anyone who is not a government employee in order to avoid undue influence by special interests in Federal decision making. The judge ruled that once a charter is filed task Force meetings to get information must be open. Meetings where the actual recommendations for Clinton Are put together can be closed he said but Advance notice still must be Given. The task Force has not met so far and the administration said the ruling s effect would be minimal because future meetings were already planned to be open a with the required notice. However the judge would not forbid private meetings by a 340-employee working group which is supporting the task forces Mission to devise a legislative package by May 1 for overhauling the nations health care system the working group and 15 Quot Cluster groups weighing various issues and Gath Cring and analysing information Are not directly advising the president and Are exempted from the Law he said. . District judge Royce c. Lamberth Quot obviously Well comply Quot White House communications director George Steph Nopoulos said of the ruling. Quot the health care task Force has not yet met so there is no violation of the Law in any Way. We fully intend. Before there is a meeting of the task Force to give  two health care organizations and a Public interest group filed suit two weeks ago seeking to open meetings of the task Force the working group and its sub panels. The association of american physicians and surgeons the american counsel for health care Reform and the National Legal amp policy Center contended that Hillary Clinton is neither a government officer nor a full time Federal employee. They argued before Lamberth that meetings should be open because of the Quot potentially enormous effect Quot the recommendations will have on Quot How we live How we see a doctor How the country finances medical care and the tax status of All of  Justice department attorneys representing the White House contended that the 1972 Law did not apply because Hillary Clinton As first lady was the Quot functional equivalent of a Federal  and if it did apply the Law is a constitutional infringement upon the president s Power to get confidential advice they argued. Quot Congress did not exclude the first lady nor did it then decree a and it has not decreed since a that the presidents spouse qualifies As an employee or even a quasi employee of the Federal government Quot Lamberth said. In a footnote Lamberth a Republican appointee of president Reagan noted that the president could have avoided Quot precipitating a constitutional confrontation Quot of taking up an offer made feb. 1 by rep. William f. Clinger jr., a a Clinger offered to submit a Bill defining the spouses of the president and the vice president As full time Federal employees under the advisory committee Law. White House counsel Bernard w. Nussbaum responded that the Law Quot Vas not intended by Congress to apply to the health care task  drug Industry s marketing techniques criticized Washington a there was just one catch to the physicians movie club in which thousands of doctors received free unsolicited copies of film favourites such As on Golden Pond. The videos including that love Story featuring Katharine Hepburn and Henry Fonda coping with their Sunset years included a five minute commercial for pame Lor an ant depression drug for the elderly. Quot the Only thing you Supply is the Popcorn Quot said the pitch from or. William f. Westlin medical affairs director for Sandoz pharmaceuticals corp. The movie club and other giveaways Are part of a torrent of marketing activity that the Industry uses to persuade physicians to prescribe its drugs. The Industry a techniques Are drawing scrutiny amid complaints from president Clinton about drug prices. A recent congressional study estimated the Industry annually spends $2 billion More marketing drugs Nan on the research to develop them. Where does All that Money go to fund promotions like the physicians movie club a now defunct after running afoul of american medical association ethics guidelines a As Well As Glossy ads in medical journals seminars free pens prescription pads Coffee mugs and other gadgets distributed by a Small army of sales people. The Industry in its defense says its marketing expenditures Alert doctors to advances in Medicine. Quot we do that better than any country on Earth Quot said Jeffrey a Warren of the pharmaceutical manufacturers association. Quot the medicines get to people quicker than they would  the Industry will spend an estimated $12.6 billion this year to develop new drugs. Warren says the marketing budget is probably in that Range a although the companies done to release precise figures. Critics say it costs Consumers. Quot this advertising and marketing Isnit just wasted Money Quot said rep. Henry a. Waxman a Calif. Quot its Money that could be used to Cut drug prices. They distort the Market by convincing doctors to Overlook Price when prescribing