American Notes HUD SCANDAL

Many members of Congress were furious last year when former HUD Secretary Samuel Pierce stonewalled his way through hearings on influence peddling and favoritism at his agency. Last week, bowing to Democratic pressure, Attorney General Dick Thornburgh recommended the appointment of an independent counsel to investigate Pierce's role in awarding millions of dollars in contracts to associates of top Republicans. But Thornburgh did Pierce a favor: he limited the inquiry to moderate-income housing contracts and refused to examine whether Pierce lied at the hearings.

Efforts to clean up HUD also ensnared a Democrat last week. Agency officials said Jesse Jackson bombarded them for months with calls on behalf of developer A. Bruce Rozet, a key Jackson fund raiser. To no avail: Rozet, who had grown rich on Government contracts, was barred from receiving more. Meanwhile HUD is examining why his tenants were allegedly left "to live like rats."