Senate Panel Halts Probe of Campaign Financing

The chairman of the Senate panel investigating campaign fund-raising abuses suspended hearings Friday after nearly four months, saying he believes they established that President Clinton politically exploited the White House in ways his Republican predecessors never did.

Sen. Fred Thompson (R-Tenn.) said that after 32 days of hearings, his committee has no more vital information worthy of additional public sessions.

But Democrats noted another motive--that going further would have required Thompson to give them another turn at playing prosecutor, calling their own witnesses to expose events that could embarrass the Republican Party.

The hearings thus wrap up with mixed results: plenty of information showing that the Clinton White House aggressively pursued campaign money, often providing coffees with the president and overnight stays in the Lincoln Bedroom for top donors, and that large Democratic donations, sometimes originating from overseas or ineligible givers, were laundered through and contributed in the names of other persons.

They also revealed some GOP missteps, including efforts by former Republican Party Chairman Haley Barbour to solicit $2.1 million from a Hong Kong businessman to help GOP congressional candidates in 1994.

Yet despite early promises by Thompson, the hearings produced no hard information about Chinese espionage aimed at influencing U.S. elections last year with an infusion of cash. Nor did they prove conclusively campaign contributions were exchanged for policy actions by the Clinton administration or that the president or others had violated federal law.

Although Thompson said he reserved the right to resume hearings before the committee’s Dec. 31 cutoff date if dramatic new evidence turns up, Democrats noted the suspension came as they were about to examine how two Republicans on the panel had benefited from secret donations given to a conservative consulting group.

Democrats had planned to call witnesses to show that the group, Triad Management Services, accepted donations totaling $400,000 to help Sen. Sam Brownback (R-Kan.) win election last year. Triad also paid for advertisements to benefit Sen. Don Nickles (R-Okla.), according to documents.

Although no illegalities were alleged, the Triad episode was to demonstrate how Republicans as well as Democrats had taken advantage of private citizen groups--with no contribution limits or disclosure requirements--to finance campaign activities with no public reporting required and no limit on contributions.

Sen. John Glenn of Ohio, the ranking Democrat on Thompson’s Governmental Affairs Committee, said in an interview Friday: “Obviously, they didn’t want the Triad evidence to come out. But we’ll include it in the final report.”

Although Glenn lamented that Democrats controlled only three days of hearings, he said he was glad the hearings are over.

“I regret we didn’t accomplish more,” he said. “But we laid out the case showing dangers for the future of this country--an infusion of foreign money into political campaigns and the misuse of tax-exempt institutions to finance so-called issue advertising that directly benefits a candidate.”

Glenn added, “I don’t think we need more hearings to tell us what’s wrong with this system.”

Thompson said the inquiry had exposed “a demeaning situation” involving misuse of the White House by Clinton and possible illegalities by some Democratic fund-raisers. However, he said he would not claim that his hearings showed any government officials violated the law.

“I will not pass judgment on criminal activity or comment on the honor of the president,” Thompson said. “I respect the institution too much.”

But he added that Clinton and his aides “pushed way beyond what they should have” in soliciting funds for his reelection.

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“They used the White House in ways that the Ford, Carter, Reagan and Bush administrations never did and never would,” he said. “It was a demeaning situation.”

Some witnesses, such as oil entrepreneur Roger Tamraz, told of gaining access to Clinton and other officials by contributing hundreds of thousands of dollars.

White House aides and Democratic National Committee officials testified that the prohibition against raising campaign cash on government property never was violated because no funds were solicited at White House receptions. They were used to reward donors or to cultivate future givers, these officials said.

Thompson expressed hope that the Justice Department and a future independent counsel, if one is appointed, would eventually bring criminal indictments.

He said the hearings had helped motivate Atty. Gen. Janet Reno to reorganize her fund-raising task force with more aggressive leadership, including the appointment of former San Diego Assistant U.S. Atty. Charles G. LaBella as its supervisor.

Thompson said he hoped this task force, or an independent counsel, would pursue evidence of illegal money laundering, of contributions given illegally in the names of others and of foreign witnesses, such as Yah Lin “Charlie” Trie, hiding overseas to avoid testifying.

He said he was encouraged that the Justice Department still is investigating whether a Chinese plan to influence U.S. elections was ever implemented, even though “the trail has grown cold.”

Senate investigators will cooperate with a House fund-raising inquiry headed by Rep. Dan Burton (R-Ind.). It has no cutoff date. Burton said Friday he may hold hearings over the next two months even after Congress adjourns for the year.

The Senate committee has spent $2.6 million of its $4.3-million budget, Thompson said, adding that “we ought to be able to turn back a pretty good chunk” to Congress.

Times staff writer Alan C. Miller contributed to this story.