Oct. 19, 2005, 5:39PM
4 DeLay-connected firms paid 'fine' to UT program
By T. A. BADGER
Associated Press
AUSTIN - Half of the eight corporations charged last year with making
illegal donations to Rep. Tom DeLay's political fundraising committee were
required to write checks to a University of Texas program studying money
and politics to help settle their cases.
In exchange for dismissal of charges, the four companies also pledged not
make any more improper campaign contributions in Texas, and to cooperate
with prosecutors in their investigation of DeLay and others accused of
misusing corporate donations to influence the state's 2002 elections.
The four companies that settled are retailer Sears, Roebuck & Co.;
restaurant operator Cracker Barrel Old Country Store Inc.; Questerra
Corp., a computer software provider; and Diversified Collection Services
Inc., a government debt-collection contractor.
The four with cases pending are The Williams Companies, an energy and
communications firm; electric utility Westar Energy Inc.; liquor marketer
Bacardi USA Inc.; and the Alliance for Quality Nursing Home Care Inc., a
trade association.
The eight companies and three DeLay associates were indicted in September
2004 by a Travis County grand jury in connection with contributions to the
Texans for a Republican Majority political action committee, established
by DeLay.
DeLay, the House majority leader, was indicted last month on charges of
conspiring to violate state election laws, money laundering and
conspiracy. His first court appearance is Friday in Austin.
For three years prosecutors have been investigating whether $2.5 million
in corporate funds were used illegally in 2002 to help Republicans win a
majority of seats in the Texas House for the first time since
Reconstruction. DeLay then pushed GOP legislators to redraw the state's
congressional districts in a way that gave Republicans a commanding hold
on the state's 32-member congressional delegation after the 2004
elections.
The use of corporate money for campaign purposes has been illegal in Texas
for a century. The indictments center on $190,000 donated to DeLay's
committee that was then sent to the Republican National Committee. The
national committee later gave the same amount to Texas House candidates.
Questerra and Diversified Collections were each accused of giving $50,000,
while Cracker Barrel and Sears reportedly gave $25,000 each.
At least one of the companies is now working prosecutors.
"We are cooperating," said Alison von Puschendorf, spokeswoman for
MeadWestvaco in Stamford, Conn., which is Questerra's parent company.
"What we've been asked to provide, I don't know."
Media representatives for Sears, Cracker Barrel and Livermore,
Calif.-based Diversified Collection said their companies have not assisted
in the investigation.
"We haven't been asked for anything, and we don't know what we could
provide if we had been asked," said Julie Davis, a spokeswoman for
Lebanon, Tenn.-based Cracker Barrel.
District Attorney Ronnie Earle would not comment on the case last week
after a court hearing in Austin for DeLay's associates Jim Ellis and John
Colyandro. His office did not return repeated phone calls seeking comment.
The four companies that settled agreed to give more than $200,000
collectively to the LBJ School for Public Affairs at the University of
Texas. Retired Adm. Bob Inman, the school's interim dean, said he plans to
use the money for a symposium next year on how money influences politics.
"Participants will look broadly at money and politics - what does the law
say, what do corporations find they're pressed to do, what do unions do,
what do individuals do," said Inman, ex-CIA deputy director in the Reagan
administration.
Inman said the plea agreement requirement came as a pleasant surprise to
the university.
"Whatever caused it, I think actually it will produce a very useful
result," he said. "If you can get into real in-depth research, it might
lead to some legislative proposals."
As for the companies with cases still pending, the nursing home alliance
reportedly gave $100,000 to DeLay's political committee, and the other
three gave $25,000 each.
"Bacardi USA made a legal contribution in full compliance with the laws
and regulations of the state of Texas," said Patricia Neal, spokeswoman
for Miami-based Bacardi. "We're confident we will be cleared of any
wrongdoing."
Westar Energy, the largest electric company in Kansas, said it gave money
solely to take part in a two-day golf event hosted by DeLay at a luxury
mountain resort in Virginia.
"There were no promises, no expectations on our part," spokeswoman Karla
Olsen said. "That's the bottom line."
But last year the House ethics committee, which also investigated DeLay's
fundraising activities, said it found that Westar officials believed their
donation provided "special access" to DeLay. At the time, major energy
legislation was pending in Congress.
Williams, headquartered in Tulsa, Okla., would not answer questions
relating to its indictment.
http://www.chron.com/cs/CDA/ssistory.mpl/politics/3404417
.
|
