Indonesian Money Spurs New Look At Finance Rules

WASHINGTON (AllPolitics, Oct. 18) -- Many voters rank campaign finance reform near the bottom of their list of key issues. At least that's what polls say. But the growing flap over contributions to the Democrats from an Indonesian banking family could make campaign finance reform a bigger issue in the waning days of the '96 presidential campaign.

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Republican nominee Bob Dole continued his harsh attack on the Clinton Administration today, saying Democratic fund-raising abuses have led to "the foreign corruption of America."

"I would say to the president, it's time for a complete accounting," Dole said. "Come clean, Mr. President... Every day we have a new scandal involving the foreign corruption of America. This must stop and it must stop today."

But to stop money from overseas companies flowing into the American political process would probably take new legislation, at a time when lawmakers have been unable to agree on any sort of tightening of the rules to limit the all-powerful role of big money in politics.

In truth, current law doesn't do much to stop the practice. And when Congress unsuccessfully tried to pass reform legislation earlier this year, the question of contributions from abroad wasn't even part of the debate.

"It wasn't on anyone's radar screen," Nancy Ives, an aide to Sen. John McCain (R-Ariz.), told The Associated Press. McCain was a co-sponsor of the measure, with Sen. Russell D. Feingold (D-Wis.).

In summary, these are the rules now: People from overseas who are legal residents may make political donations. So can U.S. subsidiaries of overseas companies, if the money they donate was earned in the U.S. The parent firm, however, cannot direct which candidate or party gets a donation.

What has made overseas money an issue now is the $425,000 that Indonesian landscaper Arief Wiriadinata and his wife gave to the Democratic National Committee.

Normally, individuals are barred from giving more than $1,000 to a presidential candidate, but people can give larger so-called "soft money" donations for party activities like get-out-the-vote drives, telephoning and TV ads that do not promote specific candidates.

Common Cause President Ann McBride, who last week slammed both parties for alleged misuse of "soft money" donations, said the overseas money raises serious questions whether money is being laundered "through foreign nationals in this country."

Democrats, however, have said they play by the rules and returned an improper $250,000 contribution from a U.S. subsidiary of a South Korean company.

Dole campaign manager Scott Reed issued a detailed statement directed at Clinton today, fleshing out Dole's accusation about alleged fund-raising abuses.

"Some of your party's biggest contributors appear to have been Indonesian billionaires, South Korean companies, parishioners at Buddhist temples and foreign gardeners with green cards," Reed said.

"The questions that keep coming up are the same: where did the money come from? How was it funneled to your campaign coffers? What did it buy?

"It's time to stop laundering foreign money and come clean with the American people," Reed said.

Reed's statement referred to a separate but equally embarrassing Democratic campaign-finance flap this week over a fund-raiser at a Buddhist temple in Southern California that netted Democrats $140,000. The total included large sums apparently from monks who have taken vows of poverty.

In a related development, House Speaker Newt Gingrich is calling for congressional hearings on the Indonesian contributions. "I can think of no greater danger for this country than to create a pattern of foreigners trying to buy access to the politics or government and the criminal justice system," Gingrich said.

He also suggested postponing a planned sale of F-16 fighter jets to Indonesia until Congress holds hearings.

Related Stories:

• Asian Money Connection Expands To Include Monks - Oct. 17, 1996
• Dole Took Indonesian Money In 1988 - Oct. 16, 1996
• New Details on Indonesian Money Trail - Oct. 14, 1996
• GOP Harangues Clinton Over 'Indonesian Connection' - Oct. 13, 1996
• Clinton's Indonesian Connection Raises Questions - Oct. 11, 1996
• Choate Attacks Major Parties On Campaign Finance Reform - Oct. 9, 1996
• Watchdog Group Alleges Campaign Finance Violations - Oct. 9, 1996
• Campaign Finance Reform Dies Again -- June 25, 1996

Related Sites:

• FECInfo Home Page -- A user-friendly place to get at who's giving what to whom.
• Brookings Working Group on Campaign Finance Reform
• Federal Election Commission
• Center For Public Integrity -- Government Watchdog Group
• Project Vote Smart's 1996 Presidential Campaign Finance Information
• AllPolitics' Follow The Money

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