GOP Might Delay Brown Confirmation : Cabinet: Senators have questions about the Commerce Department nominee’s ties to firms that handle retirement funds.

Senate Republicans threatened Thursday to delay confirmation of Commerce Secretary-designate Ronald H. Brown unless he answers a new set of questions regarding his relationship with firms that administer retirement funds for the District of Columbia and other public entities.

Brown has indicated that he will seek a waiver of a federal ethics law that would prevent him from making decisions as commerce secretary that could affect PEBSCO Municipal Securities Corp. Brown has helped generate business for the firm for about a decade and retains a financial stake in it.

He also has indicated that he plans to retain ownership of a firm called Capital/PEBSCO, which administers District of Columbia employee retirement funds, although he said he will disqualify himself from making decisions that affect the second company.

Brown has left unclear exactly what role he would play in the firms after he becomes commerce secretary. The Commerce Department promotes U.S. business globally. It has jurisdiction over a wide range of businesses, although it does not oversee retirement or deferred compensation plans.

The Democratic Party chairman became the center of controversy earlier this week when negative publicity forced him to cancel an inaugural week party in his honor that was being underwritten by major corporations. President-elect Bill Clinton has since said he is considering imposing more stringent ethics rules on Brown.

The issue of his relationship with PEBSCO was touched upon only briefly during his confirmation hearing last week before the Senate Commerce Committee. Under questioning from Sen. Trent Lott (R-Miss.), Brown assured the panel that his interest in the firm is “insignificant, very small” and would not “have any impact on my ability to perform as secretary of commerce.”

He said that, if he does not receive a waiver, he will divest his interests in the firms.

Lott dropped the issue then but said Thursday that he has since received information indicating that “there’s some question about their expertise and the way the funds are being handled.”

As a result, Lott asked Thursday to be provided additional information, including a list of corporate officers and owners, the sources of corporate funds and how much money the firms manage. Additionally, he has requested a detailed description of the firms’ clients and an explanation of how they operate.

Although Commerce Committee Chairman Ernest F. Hollings (D-S.C.) has indicated he hopes to bring Brown’s nomination to a vote by Wednesday, Lott warned: “We are going to serve notice that, at least until these (questions) are answered, there would be no way that we would agree to go forward.”

Democratic National Committee spokeswoman Ginny Terzano said Brown continues to maintain that his relationship with the firms will not affect his performance as commerce secretary and that he plans to answer Lott’s questions as quickly as possible.

Although PEBSCO and Capital/PEBSCO have similar names, they are separate companies, each of which has a relationship with Brown.

PEBSCO Municipal Securities Corp., a subsidiary of Nationwide Mutual Insurance Co. of Columbus, Ohio, is a leading firm administering deferred compensation plans, which are voluntary retirement plans public employees may invest in through payroll deductions.

PEBSCO lawyer Mark Koogler said Brown has been “a consultant . . . on an as-needed basis” for the firm for about 10 years, making “contact with officials throughout the country . . . a first-contact person. He allows PEBSCO the opportunity to get in the door. From then on, it’s up to PEBSCO’s own sales efforts.”

Koogler declined to say how much business Brown has generated or how much Brown has earned in that capacity. In his financial disclosure statement, Brown said that he earned $40,000 from PEBSCO last year and that the value of his holdings in the firm is less than $500,000.

Koogler indicated that there are no plans to sever the relationship.