HUD to Fire 4 in Field Unit, Officials Say

WASHINGTON — Three officials of the Housing and Urban Development Department’s troubled Washington field office were told Friday they will be fired in 30 days and a fourth will be told next Tuesday, HUD officials disclosed.

These are the first people dismissed as part of the department’s investigation of mismanagement during the Ronald Reagan Administration.

The Washington field office was the base of operations of escrow agent Marilyn Louise Harrell, who became known as “Robin HUD” after she confessed to diverting $5.5 million of the department’s money to charities.

The four officials were placed on leave in June, then given temporary assignments at headquarters when their leaves expired earlier this month.

They are Margaret White, former head of the office; Robert B. Warner, director of housing management; Charles W. Womble, loan specialist, and Everett Rothschild, head of property disposition.

Lax Controls Found

An audit of the office found that lax financial and management controls allowed agents like Harrell to delay transfers of funds or not make them at all. Auditors have estimated the office is missing a total of $10 million.

The officials, who made known the dismissal notices on condition they not be identified, said all but Rothschild were given letters informing them they will be dismissed in 30 days unless they can refute charges of mismanagement against them.

Rothschild is out of town and will be given his letter on Tuesday, the officials said.

White had wide support among Washington politicians and many protested when she was placed on leave. The District Urban League also wrote Secretary Jack Kemp a protest letter.

In a speech Friday to agency workers at the swearing in of HUD’s new general counsel, Francis Keating, Kemp repeated his pledge to root out fraud and mismanagement.

Kemp told the workers he would have “zero tolerance” for mismanagement and said any employees who felt they could not live up to higher standards should quit.