Panel Is Expected to OK Argyros

Orange County businessman George Argyros, who headed a $30-million fund-raising effort in California last year for President Bush, is expected to be approved by a Senate committee today in his quest to be ambassador to Spain.

Argyros will join six others diplomatic post seekers before the Senate Foreign Relations Committee. The nominations also must be accepted by the full Senate.

Consideration of Argyros’ nomination was on hold pending conclusion of a state attorney general’s investigation into allegations that Argyros’ company, Arnel Development, overcharged renters for security deposits and cleaning bills.

That was resolved last month when a civil complaint against Arnel was settled with the company agreeing to pay about $1 million in compensation, without admitting wrongdoing.

Argyros was in Washington on Tuesday and was unavailable for comment on his nomination.

Today’s hearing will allow the seven nominees to give short statements and respond to committee questions. California’s representative on the committee, Democratic Sen. Barbara Boxer, hasn’t indicated a preference on Argyros’ nomination, said spokesman David Sandretti.

Sandretti said Boxer was aware of the controversy surrounding Argyros’ company. Argyros placed his worth at more than $1 billion in a financial statement required for government nominees.

The Arnel complaint was transferred to state Atty. Gen. Bill Lockyer by Dist. Atty. Tony Rackauckas. Former investigators accused Rackauckas of voiding a criminal complaint against Arnel and Argyros in favor of negotiating a settlement.

Argyros also has attracted controversy as the major private donor supporting the plan to build a new commercial airport at the closed El Toro Marine base. He has contributed about $3.5 million toward the project since voters narrowly approved it in 1994--nearly single-handedly funding campaigns for three airport-related initiatives.

Argyros will remain involved in the airport fight even if his nomination is approved, associates have said. Argyros repeatedly has declined to comment on his nomination or his plans.

The other nominees scheduled for today’s Senate hearing are Lyons Brown Jr. of Kentucky, for ambassador to Austria; William Montgomery of Pennsylvania, for ambassador to Yugoslavia; Melvin Sembler of Florida, for ambassador to Italy; Ronald Weiser of Michigan, for ambassador to Slovakia; and Robert Beecroft of Maryland and Stephan Minikes of Washington, D.C., for ambassadorial posts with the Organization for Security and Cooperation in Europe.