Reno Extends Investigation Into Clinton-Gore Campaign Spending

For the third time in less than a month, Atty. Gen. Janet Reno on Tuesday launched a 90-day investigation of Democratic fund-raising activities--specifically the question of whether President Clinton was involved in the improper use of campaign money--and whether allegations of wrongdoing are strong enough to merit appointment of an independent counsel.

The Reno decision means that the Justice Department believes it is worthwhile to continue reviewing allegations that the Clinton-Gore campaign in 1996 inappropriately diverted to its reelection effort Democratic National Committee funds whose use was restricted by law to support for general party-building activities.

Although the two other 90-day inquiries cover activities by Vice President Al Gore and former White House Deputy Chief of Staff Harold M. Ickes, targets of the new one regarding “issue ads” include Clinton, who helped coordinate the ads.

In her notification to a federal court of appeals here for an extended 90-day inquiry, Reno pointedly said the case involves “President of the United States William Jefferson Clinton concerning political advertisements during the 1996 election cycle.”

At issue is whether about $42 million in campaign money was used inappropriately to trumpet Clinton and Gore as candidates, thereby exceeding campaign spending limits, instead of highlighting general Democratic issues such as education, the environment and the federal budget.

If Reno decides after 90 days that the case has merit, she would seek the appointment of a special prosecutor to determine whether any laws were violated.

At the White House and in the Clinton-Gore campaign, officials strongly defended their disbursement of political donations and said no money was improperly used to boost candidates instead of issues.

“These ads addressed the Democratic Party’s position on purely substantive issues and did not contain language encouraging, seeking or advocating the president’s reelection,” said White House Counsel Charles F. C. Ruff.

“Moreover, all of the DNC’s ads were carefully reviewed by both DNC and Clinton-Gore counsel. In short, these ads were not only lawful, they were completely appropriate.”

Ruff called premature an internal Federal Election Commission memo that first raised the question of whether the Clinton-Gore campaign stepped over the line in its use of large donations to the party. It is that memo that sparked the Justice Department inquiry.

“We are hopeful that once the department has reviewed this matter fully, it will conclude that these ads were proper,” Ruff said.

Lyn Utrecht, general counsel for the Clinton-Gore campaign, noted that the campaigns for both Presidents Reagan and Bush were found by the FEC to have exceeded their campaign spending limits. “Yet,” she said, “no criminal investigation was conducted and no inquiry was even initiated.”

On Capitol Hill, Republican leaders investigating fund-raising abuses stepped up their challenge for Reno to bypass the slow process of internal reviews and deliver this new matter, along with the Gore and Ickes inquiries, right into the hands of a special prosecutor.

“All of this conveniently keeps the White House from having to face tough questions before” the congressional elections in November, said Rep. Dan Burton (R-Ind.), who chairs the House Committee on Government Reform and Oversight. “It’s really a free pass from law enforcement that the independent counsel law never intended.”

Burton added that the delays only “distort the clear meaning of the law [Reno] is sworn to uphold.”

“Instead of being cheered for courage, she should be criticized for stubbornness in her failure to follow the law,” he said.

In the Senate, two influential GOP members also sharply criticized Reno for taking another three months to investigate a matter that they said should go directly to a special prosecutor.

Sen. Orrin G. Hatch (R-Utah), chairman of the Judiciary Committee, called Reno’s announcement Tuesday a “good, although clearly incomplete, step.”

And Sen. Fred Thompson (R-Tenn.), chairman of the Government Affairs Committee, said: “There is no reason to take another 90 days to further belabor the obvious.”

Reno declined comment Tuesday. But just last week she defended the process for reviewing cases inside the Justice Department before deciding whether they should be forwarded to a special prosecutor. The 90-day inquiry was triggered after a 30-day preliminary investigation found specific allegations from credible sources.

“I’ve got to call it like I see it, regardless of the consequences,” she said Thursday. “I’ve asked for the independent counsel before and I will ask for it again when the evidence and the law justifies it.”

To rush an investigation, she suggested, would be “the simplest thing,” but she added that “I’m not going to take the easy way out.”

Regarding the internal FEC memo, she responded: “All I can say is that we have new information.” And asked whether both political parties were being reviewed on the issue of donations and advertising, she said: “We are following every lead.”

The two other 90-day investigations concern whether Gore truthfully divulged to investigators his understanding of how federal law applied to his role in fund-raising and whether Ickes made false statements to a Senate committee about the administration’s dealings with the Teamsters union.