Panel unearths fund records

It nonetheless forwarded the evidence to the Federal Election Commission and asked for a prompt investigation.

Federal law generally prohibits donors from giving foreign funds in US elections, although a federal judge in Washington recently put a wrinkle into the law by ruling it doesn’t cover so-called soft-money donations made by corporations and wealthy individuals to political parties.

The justice department or election commission could appeal the ruling.

Three cheques of 15,000 dollars each were written by three USsubsidiaries of Lippo, an Indonesian-based financial conglomerate, and donated in connection with a September 27, 1993, fund-raiser in Los Angeles that was headlined by Gore.

All three donations went to the Democratic Party’s soft money accounts, and Senate and House investigators have suspected for well over a year that the donations had foreign origins.

The cheques — one each from Hip Hing Holdings Ltd, San Jose Holdings Ltd, and Toy Center Holdings of California — were signed by two Lippo executives. One was John Huang, a Democratic fund-raiser and former commerce department official who has been a major focus of the fund-raising probes. The cheques are dated September 23, 1993.

The committee investigators said the newly uncovered bank records show the three Lippo subsidiaries received reimbursements of 15,000 dollars each from a 45,000 dollars wire originating October 15, 1993, from Lippo’s headquarters in Jakarta, Indonesia.

Lippo is controlled by the family of James Riady, an Indonesianbillionaire and longtime friend of President Clinton who has been another focus of the fund-raising investigation. Lippo has denied wrongdoing, and Lippo, Huang and Riady have been charged with nothing.

Kevin Binger, staff director for the House panel, said the new evidence raises questions about why the justice department’s two-year probe into fund-raising abuses has taken no action against Lippo or Huang. “This is clear evidence of illegal campaign contributions,” Binger said.

But Ty Cobb, a lawyer for Huang, said it is unlikely there is anything improper with the donations, given the judge’s recent foreign money ruling. And even if the judge’s decision were reversed, Cobb said, it would be the foreign parent of the company and not his client who would have to answer to the justice department.