Businessman alleges $55 million fund raising plan
1.34 p.m. EDT (1734 GMT) September 19, 1997

By Larry Margasak, Associated Press

WASHINGTON (AP) investigators today that on the eve of last year's election, then-White House deputy chief of staff Harold Ickes urgently sought $1.5 million in contributions, then later asked him to destroy evidence of the request.

"There was no way I was going to shred a document at the request of a White House official,'' R. Warren Meddoff testified as Senate fund-raising hearings delved into allegations that the White House was involved in trying to arrange $55 million to tax-exempt groups in an effort to help Clinton.

Democrats sharply challenged Meddoff, saying they didn't believe him. And the White House rallied around Ickes, who has said his request wasn't meant to be a solicitation and does not recall ever demanding the document be destroyed.

"The credibility of this witness is apparent for all to see,'' White House special counsel Lanny Davis said.

While Meddoff testified, leaders of the Governmental Affairs Committee announced an abrupt change in the focus of the hearings as the panel tries to have an effect on campaign finance reform legislation.

The committee will suspend its probe of Democratic fund-raising misdeeds and, starting next week, scrutinize the explosive growth of "soft money'' and independent expenditures donations by corporations, wealthy individuals and labor unions.

The decision was prompted by the growing chance that a campaign finance reform bill, which would ban soft money, will be on the Senate floor within weeks.

"These will be public policy hearings and will hopefully offer to other members of the Senate and the public the benefit of these hearings before campaign finance reform comes to the Senate floor,'' Chairman Fred Thompson, R-Tenn. and Sen. John Glenn, D-Ohio, the panel's ranking Democrat, said in a joint announcement.

Meddoff's allegations included that Ickes' solicitation came from aboard Air Force One, and that they also had telephone conversations about the money from the White House. Federal law prohibits fund-raising solicitations on government property, although experts disagree whether that extends to phone calls to individuals not on federal property.

Under sharp questioning from Democrats, Meddoff acknowledged he was a Republican, had offered $5 million last year to then-GOP presidential candidate Robert Dole, and had never met the associate who would have provided the money for donations. Democrats said they didn't believe his account.

"I for one will not ... have you come before this committee and make claims against people I have know most of my life, people who have been trusted in the leadership of the United States of America considering aspects of your own credibility,'' Sen. Robert J. Torricelli, D.N.J., snapped.

Meddoff described himself as a middleman who in October 1996 tried to arrange, with Ickes, $55 million in donations to tax-exempt Democratic-leaning groups that a wealthy business associate had offered to make after Meddoff had a brief contact with President Clinton.

During that contact at a $1,500-a-plate fund-raiser on Oct. 22, 1996, Meddoff said, he gave a business card to Clinton with a message written on the back: "I have an associate that is interested in donating $5 million to your campaign.''

He said Clinton then told him he had just made a favorable decision in a policy area of interest to his company of restrictions on humanitarian flights to Cuba.

"You can tell your people I have made a decision and they would be able to fly,'' Meddoff quoted the president as saying.

A few days later, Ickes called Meddoff from the White House and began a series of discussions about arranging donations from his business associate from Texas, Bill Morgan, to tax-exempt groups tied to Democrats.

Meddoff said his boss was expecting a large business windfall if an upcoming deal went through and wanted to make a $5 million donation immediately, followed by an addition $50 million over the next 10 months. He said when he mentioned to Ickes that Morgan wanted his donations to be tax-deductible candidates and parties cannot be deducted tax-exempt groups favorable to Clinton that would be available.

A few days later, he said, Ickes called from aboard Air Force One and made an urgent solicitation to get some of the $5 million early.

"We have an immediate need for $1.5 million in the next 24 hours. Can you get it to us?'' he quoted Ickes as asking. Ickes then faxed his a detailed list of where the money should go.

Meddoff testified that Ickes called him later the same day and said "I sent you the fax in error, I shouldn't have sent it. Please shred it.'' He said he refused to do it.

Told Ickes does not recall the shredding request, Meddoff said: "I was so shocked. ... I informed everybody in my office of the request.''

© 1997 Associated Press. All rights reserved.