Nation of Islam Probed Again As Hud Secretary Makes Amends

A month after one federal investigation cleared security firms affiliated with the Nation of Islam affiliate that receives federal funding.

At the same time, Henry Cisneros, the secretary of the Department of Housing and Urban Development who oversaw the initial investigation, has sought to make amends with Jewish leaders who were outraged over his findings.

In correspondence and meetings with the World Jewish Congress and B’nai B’rith International during the past few weeks, Cisneros has sounded a conciliatory tone.

In an April 3 letter to World Jewish Congress official Rabbi Marc Schneier, Cisneros denounced Nation of Islam leader Louis Farrakhan’s hate speech and labeled HUD’s investigation “ongoing.”

“Certainly only harm can come when such hatreds and divisions are injected into the national discourse by religious leaders or as religious dogma, as Minister Farrakhan has done in his references to the American Jewish community,” Cisneros wrote.

His remarks contrasted sharply with those he expressed at a Capitol Hill hearing on the issue last month.

During the hearing, Cisneros said HUD’s investigation of the Nation of Islam was complete and further investigations would “simply be using government resources to persecute” the organization.

Further incensing Jewish groups, the secretary compared the Nation of Islam contracts with the federal government to federal grants to B’nai B’rith International to run housing projects for the elderly.

For the past year, Jewish activists and members of Congress have been calling on the administration to examine Nation of Islam-affiliated businesses that receive government funding through contracts.

They charge that the virulently anti-Semitic organization discriminates in its employment practices against whites.

In his letter, Cisneros said HUD would continue to investigate questions about payroll taxes owed by some firms; unlicensed guards at Chicago and Baltimore housing developments; and other contract violations.

According to a Chicago Tribune series last month examining Farrakhan’s financial empire, since 1991, Nation of Islam-affiliated security companies have won more than $15 million in government contracts in nine cities, including Los Angeles, Philadelphia and Pittsburgh.

Security is the most lucrative of Farrakhan’s businesses, which include ventures in cosmetics, medicine, food, media and clothing, according to the Tribune.

The newspaper articles said many of the businesses are not financially sound. The International Revenue Service has filed liens worth more than $350,000 against the Washington security firm NOI Security and is trying to collect taxes from another business, the Tribune reported.

Activists had mixed reactions to Cisneros’ overtures.

Some said even though Cisneros’ condemnation of Farrakhan was welcome, he did not acknowledge HUD’s responsibility to investigate the Nation of Islam.

“For all of Cisneros’ nice words in the letter, he doesn’t say, `We’re going to pursue the employment discrimination,'” said Marc Stern, co-director of the legal department of the American Jewish Congress.

Others applauded his efforts to mend the rift with the Jewish community.

“We’re delighted that HUD has found its voice, first in denouncing the racism and bigotry in Minister Farrakhan’s speech, and that they have indicated that the investigation is ongoing,” said Abraham Foxman, the Anti-Defamation League’s national director.

Tommy Baer, president of B’nai B’rith International, met with Cisneros las week. Baer said he was “satisfied that the secretary understands the Jewish community’s sensitivities to the rhetoric of the Nation of Islam.”

Meanwhile, the Department of Health and Human Services has launched an investigation into a Washington AIDS clinic affiliated with the Nation of Islam.

HHS’ investigation is focusing on patient discrimination at the Abundant Life Clinic, which is run by Farrakhan’s national spokesman, Abdul Alim Muhammad.

The clinic, a source of alternative treatment for African Americans with HIV, the virus that causes AIDS, receives more than $500,000 in federal funding through contracts with local health offices.

News of the latest investigation elicited cautious approval from activists.

“The fact that they are investigating is something that we welcome,” said Mark Pelavin, AJCongress’ Washington representative.

Pelavin said his group has been pushing HHS Secretary Donna Shalala to investigate for a year. The agency’s slow response was “troubling,” he said.

And in light of HUD’s earlier investigation, AJCongress and others expressed concern over how HHs would pursue the case.

“It would be important to ensure that the limited and incomplete investigation that HUD conducted not be repeated elsewhere,” said Michael Lieberman, ADL’s Washington counsel.

Rep. Peter King (R-N.Y.), who has introduced legislation that would ban federal contracts to Nation of Islam-affiliated companies, welcomed the HHS investigation.

“We would applaud that,” said Daniel Michaeli’s, King’s press secretary.

AJCongress has also asked the Labor Department’s Office of Federal Contract Compliance to get involved in the investigations.

The office has not responded, Pelavin said.