Wednesday, Oct. 2, 2002 | 11:03 a.m.
As Las Vegas Housing Authority leaders sort out allegations of threats against employees familiar with a controversial contract involving congressional candidate Dario Herrera, one board member questions the timing of the claims.
Parviz Ghadiri, acting director of the Housing Authority, released a report Thursday acknowledging the public relations contract violated the agency's procurement policy -- an admission made by board members in February.
Councilman Michael McDonald, who chairs the Housing Authority board, told the media that employees received threats after the report was released.
Board member Bob Forbuss, who said reporters received the report before he saw a copy, suggested the Housing Authority's decision to release a report that rehashes news stories was politically motivated.
"I don't know why (Ghadiri) felt compelled to do it right now," Forbuss said. "The Housing Authority shouldn't be used as a political hammer."
The controversy surrounding Herrera's work for the Housing Authority has become one of Republican Jon Porter's primary weapons in their heated battle for a seat in Nevada's 3rd Congressional District. Herrera received about $50,000 for the work.
McDonald, Ghadiri, Las Vegas Housing Authority Purchasing Agent Mike Gifford and an employee who had received threats met in McDonald's City Hall office Tuesday afternoon.
McDonald said Ghadiri plans to send letters to all Housing Authority employees granting them whistle-blower status so they can speak freely about any threats they have received.
The Republican councilman said he has never suggested who might be responsible for the threats and balked at the notion Ghadiri's report or McDonald's decision to speak to the media about the threats were politically motivated.
"This board will not be used as a political tool and neither will I," McDonald said. "I have employees that are being threatened or intimidated while on the job."
Ghadiri didn't return messages left at his office Tuesday.
Beginning in January 2001, former director Frederick Brown paid Herrera $4,500 a month to perform public relations work for the Housing Authority. Gifford spotted the invoices in February and told Brown a request for proposals had to be issued for contracts of that size.
"I discovered we were making payments to a professional for a dollar amount that was significant enough that we would have to do an RFP," Gifford said Tuesday.
The public relations firm Tribeca Media won the contract, beating out heavy-hitting public relations companies such as Faiss Foley Merica, MassMedia and Paragon.
Brown appointed a three-member team made up of managers Sid Whitlow, Brian Sagert and Laura McGee to evaluate the proposals. Whitlow resigned shortly after controversy over the contract began brewing.
Brown, who along with Forbuss was on Herrera's congressional exploratory committee, requested that Tribeca Media share the contract with Herrera.
Gifford contends the process was conducted appropriately.
"I am convinced they did it appropriately," Gifford said. "I've never had a feeling the evaluations were affected in any way."
Housing Authority board members were unaware of the contract, which violated a procurement policy that requires their approval for purchases greater than $25,000.
The contract initially was worth $75,000, but Gifford said he made a change order to decrease the amount to $35,000 -- $14,000 of which went to Herrera Communications Group. However, while the housing authority searched for a firm, Herrera continued collecting money.
Both Tribeca and Herrera backed out of the agreement when they learned it did not conform with board policy.
"The facts are simple," Herrera said. "The executive director approached me about the work for the housing authority, I did the work and as soon as I learned there were communication problems between the board and the housing authority, I withdrew.
"It's obvious my opponent is doing anything and everything to distract the voters from the real issues."
McDonald said the report recapping the issues surrounding Herrera's contract was done at his request last summer. Brown started the investigation and died of a heart attack in June.
The U.S. Housing and Urban Development Department inspector general's division performed an audit review of the agency after Herrera's contract was publicized.
Kenneth LoBene, director of the Las Vegas HUD office, said the audit is finished but the San Francisco regional office opted to postpone releasing the findings.
When asked whether the office is waiting until after the November general election, LoBene said, "They say absolutely not."
LoBene, like agency board members Dewain Steadman and Forbuss, has heard of no complaints of employees being harassed.
"We don't usually get involved in internal affairs," LoBene said. "But we'll work with the housing authority to ensure they make the appropriate changes in procurement policies so something like this doesn't happen again."
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