Whitewater controversy moves into the courtroom
March 5, 1996
Web posted at: 12:50 a.m. ESTFrom Correspondent Bob Franken
LITTLE ROCK, Arkansas (CNN) -- Monday was the start of the first Whitewater trial which could make or break Whitewater as an issue in this presidential election year. But none of the defendants charged with crimes in this trial is named "Clinton."
Governor Jim Guy Tucker who succeeded Bill Clinton as governor of Arkansas, is on trial. So are Susan McDougal and her former husband, James McDougal. They were the Clintons' partners in the ill-fated Whitewater land development deal. They also owned Madison Guaranty, the failed savings and loan at the center of the Whitewater controversy.
James McDougal continues to charge that the Whitewater investigation is nothing more than a political attempt to get President Clinton
"This entire matter will be exposed as a political ploy by the Republicans and will greatly strengthen the president politically as we'll put to rest all the malicious rumors being put out by the Republican party," McDougal said. (179K AIFF sound or 179K WAV sound)
Before testimony begins, up to 185 prospective jurors have to go through what promises to be a tedious jury selection. It could take several days.
Federal judge George Howard described the case as "as a complex case, high profile."
The charges are that Tucker and the McDougals lied to get nearly $3 million dollars in federally guaranteed loans from David Hale who ran a federally backed lending company. Hale is the main prosecution witness. He has also accused then- governor Clinton of pressuring him to make one of the illegal transactions, 10 years ago.
President Clinton himself is expected to testify -- to rebut Hale's claims. Attorneys are still trying to work out how he will testify -- in person, by satellite or on videotape although defense attorneys certainly have a preference.
"The president will be here live unless there's an agreement worked out to the contrary. As of today's there's no agreement," said Bobby McDaniel, Susan McDougal's attorney
This is just the first Whitewater trial. As Independent Counsel Kenneth Starr pointed out in his cautious way, the primary reason a special prosecutor was appointed was to investigate the Clintons.
"The subject remains what it was when the original investigation began in January of 1994 and that's relationships," he said. (102K AIFF sound or 102K WAV sound)
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