House Panel Probes Controversial Democratic Donor
WASHINGTON (AllPolitics, Nov. 13) -- The House committee investigating fund-raising focused on controversial Democratic donor Johnny Chung, with a former White House aide testifying she didn't know how the first lady learned of a $50,000 donation from the California businessman.
"I didn't tell her. I have no knowledge of why she would know" about it, the first lady's former chief of staff, Maggie Williams, told members of the House Government Reform and Oversight Committee regarding Chung's $50,000 donation.
Williams described Chung as a frequent visitor to the first lady's office, who constantly asked how he could support the Clintons, whose enthusiasm for Mrs. Clinton "bordered on the worshipful." While she found him a "nuisance," Williams said she treated him deferentially, in part because, like her, he is a minority.
Some $366,000 in questionable donations he made to the Democratic National Committee were returned when the source of the funds couldn't be verified, including a $50,000 check Chung delivered to Williams at the White House. Accepting political donations on federal property is a violation of campaign finance laws, but Williams said she was merely trying to placate Chung so she could return to work. (352K wav sound)
"In retrospect, I could have been equally insistent, I suppose, that I could have been rude and refused to take the check from him. But it made no sense to me at that time to do anything than take the check, shorten our encounter, remain gracious, and get on with what I had to do," she said
Chung earlier this year told the Los Angeles Times he viewed the White House "like a subway -- you have to put in coins to open the gates." Williams said he didn't get that idea from her, and she denied soliciting the $50,000.
"I did not encourage Mr. Chung to believe that presenting me or someone in my office with a campaign contribution or a DNC contribution would result in any credit with me or my office, nor did I encourage to believe that our offices was a conduit for campaign contributions," she told the committee.
Chung previously told reporters that William's aide, Evan Ryan, met with him in the first lady's office about the possibility of special treatment for Chinese businessmen that Chung was meeting with. Chung said he decided to make the $50,000 contribution after Ryan mentioned Mrs. Clinton needed to repay $80,000 to the DNC [Democratic National Committee] for a Christmas party.
"I have no personal knowledge of that," Williams said today.
When Chung asked for a letter of introduction from the White House for a trip to China, National Security Council officials warned that Chung was a "hustler" whose activities were "very troubling" for U.S. diplomacy. But, Chairman Dan Burton of Indiana noted, that didn't stop former DNC Chairman Don Fowler from writing a letter on Chung's behalf. That, Burton said, is what's at issue.
"This hearing is not ... just about Johnny Chung," Burton said. "This hearing is about a White House that attracted him like a magnet. This is a story about a president who was starved for cash and didn't mind going all-out to get it."
The committee's ranking Democrat, Henry Waxman of California, noted that for his hundreds of thousands of dollars, Chung visited the White House over fifty times, eating meals at the cafeteria, attending parties, movies and a radio address. But saying no "policy favors" ensued, Waxman called Chung "not a big player by Washington standards."
"He's dwarfed by money and access the tobacco companies, or others like Archer Daniels Midland or Amway, enjoy," Waxman said.
In an afternoon session, the panel continued its focus on Chung's White House visits, questioning Nancy Hernreich, deputy assistant to the president; Kelly Crawford, former staff assistant to Nancy Hernreich; Carol Khare, former assistant to former DNC chairman Donald L. Fowler; and Ceandra Scott, former staff member at the Democratic National Committee.
The panel will call Chung tomorrow to speak to a closed session. The committee is closing its doors in the hopes that Chung will not invoke his Fifth Amendment rights against self-incrimination.