ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Saturday, March 1, 1997 TAG: 9703030033
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
AS DEMOCRATS RETURNED another $1.5 million to contributors, a memo revealed a possible incentive offer.
The Democratic Party said Friday it would return an additional $1.5 million in tainted contributions, more than doubling the total it had previously announced. Most of the money was tied to a trio of Asian-American fund-raisers.
At the same time, a newly disclosed Democratic National Committee document suggested that fund-raisers had sought to coordinate a list of 10 donor perks with the White House - including seats for contributors on Air Force One and help getting appointments to federal boards and commissions.
The unsigned memo - apparently written by a committee operative - said the purpose was ``to reach our very aggressive goal of $40 million this year.'' It was among papers turned over to a congressional panel by former White House deputy chief of staff Harold Ickes.
Democratic officials said Friday that they decided to return the additional $1.49 million - on top of $1.47 million returned last fall - based on the advice of an accounting firm hired to investigate the source of contributions.
``It's a serious amount, but it's a small percentage of the overall amount raised,'' said Colorado Gov. Romer, the Democratic National Committee's new general chairman. During the period in question, 1994-96, the DNC raised $227 million.
Ernst & Young accountants investigated hundreds of donations, including all of those over $10,000, and some smaller donations are still being evaluated.
The review found $247,610 worth of donations deemed to be illegal or probably illegal, mostly because the money came from foreign companies or people who weren't legal U.S. residents. The rest was returned because DNC officials believed it was from inappropriate sources or because investigators could not learn enough about the donor.
``Our system broke down and we have fixed it,'' DNC national chairman Steve Grossman declared. He said the party's new fund-raising rules - ``we believe they are the most rigorous ever implemented by any political party'' - would prevent future abuses.
Three-fourths of the $3 million in improper donations found so far was raised or contributed by former DNC fund-raiser John Huang, Clinton friend Charlie Trie, or Johnny Chung, an entrepreneur who was host for a presidential birthday fund-raiser and frequently visited the White House.
To date, the party has identified as improper almost half - or $1.6 million - of the $3.4 million raised by Huang. A former Commerce Department official, Huang became one of the DNC's top fund-raisers for the 1996 election, in charge of raising money from Asian Americans.
Seventy-seven different donors gave money included in the latest round of returns.
Romer said he was convinced Clinton didn't know about the problems with his party's fund raising until they came to light publicly and that Clinton was deeply disappointed.
Romer said time with the president or other Democratic leaders - whether on Air Force One or in the White House - had nothing to do with influencing policy.
``You never, ever put a price tag on a perk and you do not solicit on public property,'' Romer said. He also accused congressional Republicans of offering policy favors to donors, including tobacco interests.
Grossman said the memo ``looks to us like a wish list written by someone who clearly did not understand the rules.''
But Democrats have previously acknowledged that some of the 10 perks suggested in the document were used to reward or entice contributors. This week, another set of documents turned over by Ickes revealed that Clinton personally approved using White House coffee klatsches and overnight stays for donors.
The new memo directly links fund-raising efforts to the naming of donors to government positions. ``Better coordination on appointments to Boards and Commissions,'' the author of the document wrote as item five on a the list.
The list included: ``two seats on Air Force I and II trips; six seats at all private dinners; six to eight spots at all White House events; official delegation trips abroad; White House mess privileges; White House residence visits and overnight visits.''
Romer said time with the president or other Democratic leaders - whether on Air Force One or in the White House - had nothing to do with influencing policy. And he said it was not unusual or improper for donors to be considered for government boards.
Also on Friday, Clinton telephoned Senate Minority Leader Tom Daschle and at least two other senators to complain about fellow Democrats calling for an independent counsel to investigate possible fund-raising irregularities, Democrats said Friday.
Rep. Henry Waxman, D-Calif., the lead Democrat in the House investigation into fund-raising problems, said an independent counsel should examine allegations of improper money-raising by the Clinton campaign.
LENGTH: Medium: 96 lines ILLUSTRATION: PHOTO: AP. Democratic National Committee chairmen Gov. Royby CNBRomer, left, and Steve Grossman announced the return of $1.5 million
in improper campaign donations Friday. color.