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Politics : PRESIDENT GEORGE W. BUSH

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To: MKTBUZZ who started this subject7/12/2004 12:13:24 PM
From: DuckTapeSunroof  Read Replies (2) of 769670
 
DeLay's Corporate Fundraising Investigated

Money Was Directed to Texas GOP to Help State Redistricting Effort

By R. Jeffrey Smith
Washington Post Staff Writer
Monday, July 12, 2004; Page A01
washingtonpost.com

In May 2001, Enron's top lobbyists in Washington advised the company chairman that then-House Majority Whip Tom DeLay (R-Tex.) was pressing for a $100,000 contribution to his political action committee, in addition to the $250,000 the company had already pledged to the Republican Party that year.

DeLay requested that the new donation come from "a combination of corporate and personal money from Enron's executives," with the understanding that it would be partly spent on "the redistricting effort in Texas," said the e-mail to Kenneth L. Lay from lobbyists Rick Shapiro and Linda Robertson.

The e-mail, which surfaced in a subsequent federal probe of Houston-based Enron, is one of at least a dozen documents obtained by The Washington Post that show DeLay and his associates directed money from corporations and Washington lobbyists to Republican campaign coffers in Texas in 2001 and 2002 as part of a plan to redraw the state's congressional districts.

DeLay's fundraising efforts helped produce a stunning political success. Republicans took control of the Texas House for the first time in 130 years, Texas congressional districts were redrawn to send more Republican lawmakers to Washington, and DeLay -- now the House majority leader -- is more likely to retain his powerful post after the November election, according to political experts.

But DeLay and his colleagues also face serious legal challenges: Texas law bars corporate financing of state legislature campaigns, and a Texas criminal prosecutor is in the 20th month of digging through records of the fundraising, looking at possible violations of at least three statutes. A parallel lawsuit, also in the midst of discovery, is seeking $1.5 million in damages from DeLay's aides and one of his political action committees -- Texans for a Republican Majority (TRMPAC) -- on behalf of four defeated Democratic lawmakers.

DeLay has not been named as a target of the investigation. The prosecutor has said he is focused on the activities of political action committees linked to DeLay and the redistricting effort. But officials in the prosecutor's office say anyone involved in raising, collecting or spending the corporate money, who also knew of its intended use in Texas elections, is vulnerable.

Documents unearthed in the probe make clear that DeLay was central to creating and overseeing the fundraising. What the prosecutors are still assessing is who knew about the day-to-day operations of TRMPAC and how its money was used to benefit Texas House candidates.

Several weeks ago, DeLay hired two criminal defense attorneys to represent him in the probe. He previously created a fund for corporate donors to help him pay legal bills related to allegations of improper fundraising, and is now considering extending its reach to include the fees for these attorneys....
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