The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Saturday, January 18, 1997            TAG: 9701180381
SECTION: FRONT                   PAGE: A1   EDITION: FINAL 
SOURCE: FROM WIRE REPORTS 
DATELINE: WASHINGTON                        LENGTH:   95 lines

GINGRICH FACES REPRIMAND, FINE SPEAKER DUE BEFORE FULL HOUSE TUESDAY TO LEARN PUNISHMENT

The House ethics committee took the unprecedented action Friday of recommending a $300,000 fine and reprimand for Newt Gingrich, virtually assuring that the Georgia Republican will become the first House speaker ever to be formally disciplined by his peers.

The sanctions, ratified on a bipartisan vote of 7-1, would permit Gingrich to retain his powerful post, and he said in advance he would submit to them. A formal House vote is scheduled for Tuesday.

In a sharply worded report, the special counsel who has been investigating Gingrich concluded that he had engaged in ``reckless conduct'' that showed disregard for the rules of the House.

The weight of the report by special counsel James Cole raises doubts about Gingrich's contention that he was simply naive and largely innocent of any intentional misconduct.

And Gingrich's decision to accept the penalty, hammered out in a plea bargain between his lawyer and ethics investigators, suggests that the charges were more grave than he and his congressional allies were willing to acknowledge.

The charges against Gingrich, simply put, are that he improperly pressed his political agenda through the use of tax-exempt foundations, a possible violation of federal law, and then misled Congress about his activities.

The speaker's behavior ``does not represent only a single instance of reckless conduct,'' Cole's report said. ``Rather, over a number of years and a number of situations, Mr. Gingrich showed a disregard and lack of respect for standards of conduct that applied to his activities.''

Regardless of its ultimate outcome, the two-year ethics investigation has left Gingrich distracted and weakened.

Republicans say, Gingrich has had to spend enormous political capital maintaining his colleagues' support through this crisis. That could leave him with fewer chips to play when he seeks tough votes on the budget, Medicare and other policy matters.

Gingrich himself was silent Friday. But his attorney, Randolph Evans, said: ``The speaker recognizes the serious nature of the charges and recognizes the seriousness of his admission to the violation.''

Congressional Democrats immediately called upon Gingrich to step aside as speaker.

``Sometimes it's not enough just to say you're sorry,'' said Rep. David Bonior of Michigan, Gingrich's most tenacious critic.

But Republicans continued to express loyalty to him. Rep. Lamar Smith, R-Texas, a late addition to the ethics panel, was the lone dissenter in Friday's vote.

Ultimately, Gingrich's fate may hinge on whether public confidence in him erodes to the point where his Republican colleagues conclude he has become a liability.

If, as expected, the full House agrees Tuesday with the investigators and fines Gingrich, it would be the first time in history that any House member was fined by Congress for breaking the rules.

And it would be the first time that a speaker was reprimanded by his peers. A stiffer penalty, such as a censure, would have required the speaker to step down. Former House Speaker Jim Wright, D-Texas, resigned from the House in 1989 rather than face a possible censure.

Disclosure of the terms of the penalty came Friday as the House ethics committee opened a hastily summoned hearing on formalizing the sanction.

In a stark contrast to the partisan and angry battle in recent days over the ethics investigation, the hearing itself was somber and understated.

``This is a sad day,'' said Rep. Ben Cardin, D-Md., the senior Democrat on the panel. ``A member has admitted violating the ethics rules of our House and bringing discredit on the House of Representatives.''

Cole's report also found that, in responses to its investigators in the case, Gingrich provided ``inaccurate, misleading and unreliable'' information about his activities.

``Either Mr. Gingrich intentionally made misrepresentations to the committee, or he was again reckless in the way he provided information,'' the counsel's report said.

Gingrich's Atlanta attorney acknowledged to the committee that the speaker had brought discredit to the House by violating its rules. But, Evans said, Gingrich violated no laws and had ``cooperated fully and completely with the committee'' in its investigation.

Evans said Gingrich had agreed to pay the $300,000 to reimburse the committee for the expenses it incurred from having to prolong the inquiry because of the inaccurate information he had submitted.

A Gingrich spokeswoman said the speaker has not yet decided whether he will try to pay the fine from his own resources. There is precedent for him to transfer money from his campaign committee but he would be liable for additional income tax if he converted campaign money to personal use.

The speaker also could establish, as President Clinton has done, a separate legal defense fund to solicit money for the heavy attorney fees he has incurred and presumably, to pay all or part of the fine. MEMO: This story was compiled from reports by Knight-Ridder News

Service, The Associated Press and The Los Angeles Times. ILLUSTRATION: ASSOCIATED PRESS color photo

House Speaker Newt Gingrich appears in good spirits Friday as he

prepares to address youths of the Close-Up Foundation, whose members

come to Washington to watch the political process at work.


by CNB