DATE: Tuesday, November 25, 1997            TAG: 9711250530

SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 

SOURCE: BY RANDALL CHASE, ASSOCIATED PRESS 

DATELINE: RALEIGH                           LENGTH:   84 lines

WATCHDOG GROUP ALLEGES PROJECTS ON N.C. ROADS BENEFIT BIG DONORS

A new stop light there, a new turn lane here. Pretty soon it adds up to political favoritism, a watchdog group said Monday in a review of political giving linked to the state Board of Transportation.

Democracy South, a Chapel Hill group, said its review of campaign contributions found that board members, their families and key business partners contributed more than $2 million to state and national political candidates from 1990 to 1996.

In return for their contributions, Board of Transportation members often expect special consideration from the Department of Transportation for road projects in their districts, said Bob Hall of Democracy South.

``A huge amount of public money is getting twisted and channeled into projects that favor those donors,'' Hall said.

``It's a disgusting and scandalous situation,'' Hall said. ``We really need a new way to finance campaigns to cut the link between the donor and the politician. Once they give money, they want something in return. And when they give $60,000, they want a lot.''

The study found that Gov. Jim Hunt received the most money - $652,428 for his 1992 and 1996 gubernatorial campaigns.

Democratic Party committees and leadership political action committees received $483,477, while Republican Party committees and related PACs took in $85,243.

The Hunt administration downplayed the report.

``Another day, another release from Democracy South that ignores the fact. Once again, the fact is that Governor Hunt appoints people to these boards and commissions based on their merit and their leadership, and not on their money,'' said Barbara Thompson, a spokeswoman for the governor.

The study follows the resignations of two transportation board members after questions about possible conflicts of interest.

Democracy South cited an estimate from former state highway administrator Billy Rose that about 10 percent of the DOT budget goes for road projects designed to satisfy what he called ``political favoritism or just plain old greed.''

The DOT's budget is approximately $2.8 billion.

``The truth is, it would be cheaper for taxpayers to finance all these political campaigns and cut out all this waste that results from these privately funded campaigns,'' Hall said. ``It would be a bargain. Right now, it's a bargain for these wealthy fat cats.''

Among current board members, the largest contribution totals were linked to Charles Shelton Jr., appointed to the board by House Speaker Harold Brubaker, and Douglas Galyon, appointed by Hunt. Democracy South linked Shelton to more than $437,000 in contributions, including more than $110,000 to Hunt. Galyon was linked to more than $406,000 in contributions, including $49,000 to Hunt.

Shelton and Galyon both declined comment Monday. A call seeking comment from Transportation Secretary Garland Garrett was not immediately returned.

Gail Nardi, a spokeswoman for the state Democratic Party, defended the campaign contributions received by Democrats.

``Democracy South and anyone else who cares to look knows about contributions to the Democratic Party because we report them openly and fully,'' Nardi said. ``Unfortunately, that also opens contributors and political organizations to any crackpot conspiracy theory that anyone would like to propose. . . . It is, I think, offensively cynical for anyone to assume that someone who participates in the democratic process by making a political contribution is somehow doing something wrong.''

The study was released following the recent resignations of two Board of Transportation members, Carroll Edwards and Odell Williamson, after reports indicated they may have misused their positions for personal gain.

Edwards resigned last month following news stories that he pushed for $1.1 million in road projects that benefited his family businesses. State officials concluded that Edwards violated ethics rules but did not intentionally break the law.

Williamson resigned after a news article reported that he pushed road projects that favored him or relatives. State officials plan to share the results of an internal probe of Williamson with the State Bureau of Investigation.

The reports have sparked an internal investigation by DOT, an outside study by the department, a state audit scheduled to begin next year, an investigation by the Joint Legislative Transportation Oversight Committee and a study by a special Senate committee of ethics policies at DOT and other boards and commissions.

They also prompted Attorney General Mike Easley to set up a task force to advise members of state boards and commissions on ethics policies and possible conflicts of interest.

Easley has received more than $68,000 in political contributions linked to BOT members, the study said.

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