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Politics : Clinton's Scandals: Is this corruption the worst ever? -- Ignore unavailable to you. Want to Upgrade?


To: Bill who wrote (4155)9/8/1998 6:18:00 PM
From: Who, me?  Respond to of 13994
 
Probe of Clinton campaign extended
Move could lead to appointment of independent counsel

MSNBC STAFF AND WIRE REPORTS

WASHINGTON, Sept. 8 - Attorney General Janet
Reno on Tuesday opened a 90-day investigation
into President Bill Clinton's 1996 re-election
campaign. After 90 days, Reno will decide
whether to appoint an independent counsel. The
inquiry will focus on allegations that Clinton and
his top political aides circumvented campaign
spending limits by directing Democratic National
Committee advertising to benefit the Clinton-Gore
campaign, sources told NBC News and other news
organizations.












`There was no
violation of
campaign spending
limits.'
- JIM KENNEDY
White House spokesman
THE JUSTICE DEPARTMENT review was
prompted by new information suggesting that Clinton and
his top advisers used so-called "issue ads" paid for by the
Democratic National Committee to aid Clinton's re-election
effort, thus circumventing the spending limits on individual
federal campaigns.
The review came after the Federal Election
Commission staff reversed its earlier interpretation of the
law, in which it concluded that it would be legal for the
president to have "coordinated" the spending of Democratic
party money know as "soft money," even if it benefited his
own campaign.
The Wall Street Journal reported that commission
auditors strongly suggest in a memo that was subpoenaed
by the Justice Department that because the president and
his advisers were so involved in creating campaign-like TV
ads financed by the Democratic National Committee that
they should be considered campaign expenditures.
Sources told NBC News that an independent counsel
would almost certainly examine fund-raising practices by the
Republican National Committee as well.
The appointment of an independent counsel would be a
major distraction to Clinton, who now faces a report by
Independent Counsel Kenneth Starr on his relationship with
former White House intern Monica Lewinsky.

`LEGAL AND APPROPRIATE'
Last week, the White House spokesman James
Kennedy defended the use of the issue ads as "entirely legal
and appropriate."
"There was no violation of campaign spending limits,"
he said. "We are confident that, at the end of its review, the
Justice Department will arrive at a fair conclusion based on
the facts and the law."
Clinton attorney David Kendall met with top Justice
Department officials on Wednesday to attempt to persuade
them that no further investigation is warranted. The
Washington Post quoted sources familiar with the meeting
as saying that Kendall argued that if the inquiry does
proceed, it should be directed at the campaign organization
and not at Clinton.

GORE, ICKES UNDER SCRUTINY
Reno's latest move followed her recent decisions to
open inquiries into whether Vice President Al Gore lied last
year about telephone fund-raising calls he made from his
office and whether former top White House aide Harold
Ickes committed perjury before a Senate Committee
examining fund-raising abuses.
The questions being raised about the issue ads have
been debated within the Justice Department and by legal
experts since the closing days of the 1996 campaign. Reno
already has ordered at least three separate examinations of
allegations related to the DNC ads and the funds used to
pay for them. Each time, she has concluded that the
evidence does not warrant appointment of an independent
counsel.

NBC's Pete Williams, The Associated Press and
Reuters contributed to this report.