Burnt Orange Report

The Latest on Tom DeLay

By Byron LaMasters

Last week, Andrew posted a primer on "Tomstown", the brewing scandal where Tom DeLay and Tom Craddick allegedly used millions of dollars from corporations during the 2002 campaigns in helping Tom Craddick become speaker of the Texas House (which allowed for redistricting to occur). For more background on the story, the best sites to check out are Save Texas Reps and Off the Kuff. Unfortunately, we haven't been following the story as much as we should have (along with Tom DeLay's antics in general), but it's a big story, and we'll do our best to pass along as many details of the story and the investigation into Tom DeLay's (probably illegal) activities as we can.

To get some insight into some of the tactics used by Tom DeLay, check out today's Washington Post article. Tom DeLay sets up front "charity" organizations, but uses much of that money for other purposes.

A public advocacy group yesterday asked each House member to request an ethics inquiry into a charitable organization linked to Majority Leader Tom DeLay (R-Tex.), the latest step in a quickening pace of ethics complaints and reactions in Congress.

Democracy 21 contends that the charity, Celebrations for Children Inc., is a political scheme established to let DeLay raise huge sums from interest groups and supporters to host lavish parties at this summer's Republican National Convention.

DeLay spokesman Jonathan Grella said at least three-fourths of the charity's income will go to needy children, with the remainder paying for dinners, a golf tournament, a rock concert, Broadway tickets and the other fundraising events DeLay plans to host at the convention in New York City.

[...]

House rules prohibit behavior by members or staffers that fails to "reflect creditably" on the House. Federal laws governing tax-exempt charities allow no more than an insubstantial portion of a group's revenue to be spent on activities other than the charity's main stated purpose.

Celebrations for Children fails both tests, alleges Wertheimer's complaint.

"Tax-exempt charitable organizations are not supposed to be used as political playthings by Members of Congress," his letter says. "The DeLay scheme will allow House members to attend, free of charge, such events as Broadway shows, golfing tournaments, yacht cruises, dinners, parties and other events, with the events being paid for by a 'charitable' organization and funded by big donors to the 'charity,' many of whom are likely to have important interests pending in Congress."

Celebrations for Children is a front group where DeLay's donors can give unlimited amounts of tax-deductable money so that Tom DeLay can spend a cut of a supposed charity to put on events for his political donors. Comon Cause is also on the case, and is seeking the intervention of New York Attorney General Eliot Spitzer. The Hill reports:

Common Cause, recently made inquiries with Eliot Spitzer, New York attorney general, to determine whether the charity was properly registered.

That may lead to a formal request for an investigation.

The two watchdogs allege that DeLay plans to use the charity improperly to fund political activities in New York City during the 2004 Republican National Convention.

In other recent Tom DeLay news, his PAC's donated over $30,000 to the anti-rail campaign last year in Houston. The campaign for light-rail in Houston passed narrowly.

Now, back to the scandal at hand. It was reported over the weekend that Tom DeLay used his National PAC to donate to 15 Texas legislative candidates. The Dallas Morning News reports:

U.S. House Majority Leader Tom DeLay's national fund-raising committee contributed to 15 Texas legislative candidates whose campaign finances are under state criminal investigation for possible improper contributions during the 2002 election.

While Mr. DeLay's national fund-raising committee is not the focus of the investigation, he helped found the inquiry's target, Texans for a Republican Majority. Records obtained by The Associated Press indicate the breadth of his influence over financial support to Republican candidates in Texas.

Americans for a Republican Majority Political Action Committee contributed $24,000 to the candidates in 2002. The checks sent to them bear Mr. DeLay's name and title as the PAC's chairman and were dated Oct. 22, 2002, according to records filed with the Federal Election Commission.

Mr. DeLay and his aide, Jim Ellis, helped start the separate PAC, Texans for a Republican Majority, in 2001 with $75,000 from Americans for a Republican Majority. A Travis County grand jury is investigating the state PAC for allegedly using corporate money to influence the 2002 races, which Texas law prohibits.

[...]

Records of Americans for a Republican Majority were subpoenaed by Travis County District Attorney Ronnie Earle as part of the investigation.

So far, no one has been accused of any wrongdoing.

Of course, Republicans are doing their best to make Travis County District Attorney Ronnie Earle's job as difficult as possible by overwhelming the office with open records requests:

Travis County District Attorney Ronnie Earle is complaining about the number of open record requests his office is receiving.

Earle is investigating what he calls illegal, secret corporate campaign contributions in the 2002 elections. The requests for information look into whether those being investigated were abusing the system.

The DA's office is investigating campaign contributions to Republicans by the Texas Association of Business (TAB) and into possible violations of Texas law relating to State Rep. Tom Craddick's election to Speaker of the House.

[...]

While Earle continues his investigation, he's also seen a workload increase for his office. Open records requests by the same people under investigation are piling up.

"We're responding to the open records requests because that's the law, but really it's just a way to keep us from doing our job," Earle said.

On Tuesday, attorney Andy Taylor, who represents TAB, filed 83 open record requests with Earle's office: seeking e-mails, documents of meetings and other communications pertaining to the grand jury investigation.

"I personally have made a request on behalf of the TAB for all records which would demonstrate leaks by Ronnie Earle's office of confidential grand jury information not only to the media but to his political allies, to his political consultants" Taylor said.

Open records requests are important to ensure open government and accountability. However, its clear to me that Republicans are attempting to abuse the system and slow down the process of Earle's investigation. Obviously, they are concerned about something.

Posted by Byron LaMasters at March 24, 2004 02:19 PM | TrackBack