WASHINGTON-The growing furor over a former Commerce Department official’s alleged ties to questionable foreign campaign contributions and to possible White House influence in connection with trade missions prompted the Democratic National Committee to return three wireless contributions “determined to be inappropriate.”
Carolina PCS 1 L.P., a C-block personal communications services auction winner contesting a payment default on nine licenses worth $93 million, had a $15,000 donation refunded by the DNC on Oct. 29. A Carolina PCS spokesperson said the firm does not know why the contribution was rejected.
Interactive Wireless, believed to be a wireless video firm, had a $50,000 donation returned Oct. 31. A $25,000 donation by Richard Tienken, who is connected with Interactive Wireless, was given back by the DNC on Oct. 29.
Amy Weiss Tobe, spokesperson for the DNC, said “we have tightened our screening process” and that the wireless contributions fell into new parameters.
RCR has learned Carolina PCS’ contribution was disqualified because of its auction default and the Interactive Wireless-Tienken money was returned because of what was described as unsavory business associations. Interactive Wireless could not be reached for comment.
Donald Fowler, chairman of the DNC, said several campaign contributions were being examined for possible irregularities in addition to the 10 that have been returned. He said John Huang, an ex-Commerce official with Asian-America business ties going back to Little Rock, Ark., who worked with former secretary Ron Brown before moving to DNC to do fund-raising, raised approximately $2.5 million. Some of that amount has been returned. Huang has been relieved of DNC fund-raising.
“As far as I can ascertain, no other DNC staff members during my tenure as chair have traveled abroad to raise money, though we are still checking,” said Fowler.
Questions about foreign campaign contributions to the DNC dominated the final weeks of the presidential race, forcing Vice President Gore into virtual silence over his attendance at a California religious gathering where solicitations of Asian-Americans allegedly occurred. But while it did not take away from President Clinton’s electoral-vote landslide victory in the election, the issue may prove disruptive during his second term and undermine administrative efforts to smooth relations with the returning Republican-led Congress.
Attorney General Janet Reno last week rejected Sen. John McCain’s (R-Ariz.) call for an independent counsel to examine DNC fund-raising. That followed the Justice Department’s denial of a similar request by Common Cause, a campaign finance reform watchdog/advocate, a week earlier. Another McCain request is pending before Reno.
Justice, while telling McCain his request lacked concrete evidence of wrongdoing to justify an independent counsel, appointed a task force of career federal prosecutors “to explore fully the range of all allegations and issues that have been raised.”
McCain, whose influence has been enhanced through his expected Commerce Department chairmanship and presidential prospects for 2000, will continue to push for campaign finance reform next year.
“Only an independent counsel completely free from political constraints imposed by the Clinton administration will be able to determine if the letter or the spirit of the law was violated with regard to millions of dollars in soft money contributions being funneled to the president’s re-election effort,” said McCain at the time his request for an independent counsel was filed.
Commerce’s inspector general, on a separate track, is undertaking its own probe. The department said it referred to “records it has retrieved which appear to present questions concerning the conduct of former employee, John Huang, during his tenure at the department.” Huang’s attorney has refused to discuss the matter with the news media.
Larry Klayman, the Judicial Watch head who claims Brown solicited campaign contributions through trade missions with wireless telecom and other industry executives, accused the Commerce Department of trying to thwart his Freedom of Information Act request to produce trade trip documents ordered by a federal court.
“This is equivalent of asking the fox to investigate itself for raiding the hen house and it is clearly a ruse to avoid releasing documents,” said Klayman.
“This may affect some documents that are subject of the current FOIA and other press inquiries,” Commerce commented.
The fracas could prompt Congress to hold hearings next year.
