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

DATE: TUESDAY, June 27, 1995                   TAG: 9506270054
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-3   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

WHITEWATER FIGURE LOWERED

A new report places President Clinton and Hillary Rodham Clinton's losses in Whitewater slightly below their own estimate and raises the possibility the real estate venture caused losses to a failed Arkansas savings and loan, government officials said today.

The Clintons originally reported they lost $68,900 in Whitewater, and later revised that figure downward to $46,137. The new report estimates their losses somewhat lower - at $42,192, the officials said.

The report, which was prepared by a law firm for the government's savings and loan cleanup agency, was described by several government officials who spoke only on condition of anonymity.

The officials called the report a mixed development for the Clintons. It generally supported the Clintons' description of their involvement in Whitewater, but also said money from the failed S&L may have benefited the land company.

The officials said the report found the Clintons generally were ``passive'' investors in Whitewater until Hillary Clinton became more involved in closing down its affairs in the late 1980s.

But it notes that even though the Clintons were half-owners of Whitewater, a land venture in northern Arkansas, they put no money into the corporation between 1982 and 1986, the officials said.

The report, they said, cites several transactions believed to have been handled by the Clintons' business partner, James McDougal, that may have caused losses to the failed Madison Guaranty S&L, which was owned by McDougal.

For instance, it cites a $30,000 deposit into Whitewater's checking from one of the S&L's entities. McDougal has maintained that deposit was a bonus owed him by the S&L.

The report notes that Whitewater's checking account at the S&L was routinely overdrawn, and that the overdraft fees were waived by the S&L and the overdrafts routinely corrected by deposits from other McDougal companies, the officials said.

It notes that between 1982 and 1986, McDougal transferred $134,294 to Whitewater from other entities he controlled. The report concludes that at least $88,022 of that money can be traced directly back to Madison.

The report states there is no documentary evidence that proves the Clintons knew of McDougal's activities, the officials said.

by CNB