The House of Representatives has agreed to give a federal grand jury here the payroll records of two employees of House District Committee Chairman Charles Diggs in connection with a jury probe of possible payroll fraud by the congressman.
The grand jury has subpoenaed the records in connection with its investigation of charges that Diggs padded the payrolls of his employees, who then allegedly used the money to pay off Diggs' personal debts.
Diggs, an undertaker by profession whose committee handles District affairs in Congress, he said that he is aware of "preliminary explorations" into alleged payroll irregularities involving his office. He has refused to comment further.
The records subpoenaed from the House are those of Felix Matlock quest payroll records, cancelled paychecks and travel vouchers for the two employees.
Matlock, is the field representative for Diggs in the congressman's Detroit office. Miss Stultz was a legislative secretary in his congressional office until last August.
The grand jury investigation into Diggs surfaced Tuesday after subpoenas were sent to the Hill and to private financial institutions concerning Diggs' personal finances. Acquaintances have said Diggs, who earns $57,500 a year as a congressman, is in serious personal financial straits.
Among his personal financial problems are an $8,000 loan he obtained five years ago, on which there is a $5,000 outstanding balance and for which the creditor has filed suit.
Diggs, 54, was elected to Congress in 1954. He has been chairman of the House District of Columbia Committee since 1973 and is chairman of a House international subcommittee.
He is a founder and a past president of the Congressional Black Caucus.