Loan to Navarro Illegal, Golding Suit Claims : Politics: Judge to rule on $125,000 contribution from Navarro’s mother. Meanwhile, NOW revokes endorsement of Golding.

San Diego mayoral candidate Susan Golding filed suit Wednesday against her opponent, charging Peter Navarro with taking an illegal campaign contribution in the form of a $125,000 loan from his mother.

Golding’s suit came on the same day that the local chapter of the National Organization for Women revoked its endorsement of Golding, saying it opposes her on several issues, including a welfare-reform proposition and opposition to a clean-needle program designed to curb AIDS.

Superior Court Judge James R. Milliken delayed his decision on the latest dispute between Golding and Navarro, saying he would announce his findings today at a 4 p.m. hearing.

Hal Rosner, Navarro’s attorney, said the city’s municipal code clearly supports Navarro. Rosner quoted a section that reads, in part:

“A candidate may personally borrow an unlimited amount and such funds shall be considered as a contribution by the candidate himself; provided, further, that such transaction is fully disclosed and documented in accordance with applicable law.”

Rosner said that, as long as the loan is paid back at “current market rate”--and Navarro is paying back the debt at more than 10% interest--it could be a $1-billion loan from presidential contender Ross Perot and it would make no difference.

“As long as it’s paid back at current market rate,” Rosner said.

But Golding’s attorney, Robert P. Ottilie, offered a vastly different interpretation. He said that, if Ross Perot owned a lending institution, such a loan would be “kosher” in accordance with city laws, but under these circumstances, “absolutely not.”

Ottilie said the key phrase of the city’s code is not that a “candidate may personally borrow an unlimited amount” but rather “documented in accordance with applicable law.”

He said allowing a candidate to “borrow” an unlimited amount from an individual, even at current market rate, defeats the purpose of the law and the reason such campaign reform measures were instituted in 1974, in the wake of the Watergate scandal.

Rosner suggested Golding’s motives were political, saying her suit comes in the wake of ads that seek to link the Board of Supervisors member with her ex-husband, Richard Silberman, who’s now in prison.

Ottilie’s response: “That’s a malicious statement.”

Golding’s suit, which names Navarro’s campaign, him individually and City Clerk Charles G. Abdelnour as defendants, says the loan from Navarro’s mother, Evelyn M. Littlejohn of Palm Beach, Fla., exceeds the city’s political contribution limit of $250.

Deputy City Atty. Leslie J. Girard declined comment on the suit, except to say that the naming of Abdelnour as co-defendant was “done to force him to refer the matter to the criminal division for review.”

“Our involvement is to protect the interests of the city clerk and to the extent necessary to protect the integrity of our campaign ordinance,” Girard said. “We do this without regard to how it affects any candidate, and I cannot state that strongly enough.”

The lawsuit coincides with Wednesday’s action by NOW, which cited Golding’s position on Proposition 165 and opposition to a clean-needle program designed to stop the spread of AIDS as reasons for withdrawing its endorsement.

The proposition, according to NOW, “is supposed to provide for welfare reform and the extension of the governor’s power over the budget.” But in reality, NOW said, the proposition Golding supports would provide little to no benefit to the state.

“The effect on destitute mothers and children will be that 170,000 more children will go hungry and an additional 95,000 families will become homeless,” NOW officials said in a statement.

NOW officials say they also support an ordinance, which Golding opposes, that has been proposed to recognize gay and lesbian domestic partnerships, giving such unions “the same privileges that heterosexual married couples presently enjoy.”

Golding also opposes the clean-needle program, which NOW supports and calls and unavoidable deterrent to the spread of AIDS.

Golding campaign manager Dan McAllister said none of the three issues cited Wednesday were raised by NOW during discussions with the candidate.

“What Susan is asking is, is this litmus test of three concerns now being applied to every candidate that has gotten NOW’s endorsement, and if it isn’t, then it isn’t very fair at all,” McAllister said.