ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, October 4, 1994                   TAG: 9410050042
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A1   EDITION: METRO 
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON                                 LENGTH: Medium


USDA CHIEF STEPS DOWN

Agriculture Secretary Mike Espy resigned Monday, saying an investigation into gifts he accepted from people and companies that do business with his department was too distracting for him to remain. He predicted he would be exonerated.

``I owe it to the president to allow his agenda to go through with a minimum of distraction,'' Espy said in announcing he would leave the Cabinet effective Dec. 31.

President Clinton readily accepted the resignation from one of his most ardent and loyal supporters. But a separate investigation by the White House turned up more damaging information: that Espy's girlfriend, Patricia Dempsey, had accepted a $1,200 scholarship from a foundation run by Arkansas-based Tyson Foods Inc.

``Although Secretary Espy has said he has done nothing wrong, I am troubled by the appearance of some of these incidents and believe his decision to leave is appropriate,'' Clinton said.

Clinton said he had asked White House counsel Abner Mikva to continue his review of the case. An investigation by court-appointed independent counsel Donald Smaltz will also continue.

Smaltz, a Los Angeles lawyer, is investigating a range of conduct by Espy, including whether he violated rules governing contacts with Tyson and other companies that do business with the Agriculture Department.

A senior White House official, speaking on the condition of anonymity, said officials there had learned of the scholarship only last week and that Dempsey had returned the money.

Some of Espy's transgressions were ``more modest than others,'' the official said, but ``We just felt that, when you added them all together, there were serious concerns.''

Both Espy and his attorney said there was no evidence any government practice or policy was affected by the gifts to Espy or Dempsey.

``I must personally overcome the challenge to my good name,'' said Espy, 40.

Questions have been raised about Espy's acceptance of tickets to sports events, travel and lodging from Tyson. Espy denied any wrongdoing and has repaid more than $7,600 in expenses.

``I believe that I have succeeded in serving the country and in fulfilling my oath of office,'' Espy said, ``but inasmuch as I was careless in managing some of the details of my personal activities, I have failed myself, and for that, I apologize to the president and to the loyal people who have served so well.''

But he said allegations he improperly billed the government for travel or other expenses were untrue and unfounded, but he could no longer bear ``twisting in the wind.''

``The bough finally did break, in my mind,'' he said.

The resignation will end a two-year Cabinet career for Espy, a former Mississippi congressman who made history by being the first black, the first Southerner and the youngest person to serve as agriculture secretary. He becomes the second Clinton Cabinet member to resign, following former Secretary of Defense Les Aspin.

Ruth Harkin, head of the Overseas Private Investment Corp., is a leading candidate for the post and had been considered for it before Espy's appointment. She is married to Sen. Tom Harkin, D-Iowa.



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