Reid donor list released

Benjamin Grove

Monday, March 6, 2000 | 11:51 a.m.

WASHINGTON -- Sen. Harry Reid, D-Nev., today disclosed the identities of soft-money donors to his political action committee, the Searchlight Leadership Fund.

The list includes 51 donors, among them gaming, construction and soft drink companies, that gave Reid $303,150 in 1999. Boxing promoter Don King donated the largest sum, $50,000. San Diego-based Metabolife International, an herbal-based nutritional products company, gave the second highest donation, $25,000.

Reid released the information after some media and public criticism, Reid officials said. Reid was not legally required to release the donor names who contributed to the PAC that Reid uses to make contributions to political allies.

Reid could not be reached for comment this morning, but he released a statement, which calls for clearer, simpler campaign donation rules.

"Current campaign financing laws are an ineffective mess that have the perverse effect of penalizing individuals who are in complete compliance with law. The problem is that the system is broken. By simply following the rules, I risk losing the trust and confidence of Nevadans because of how these regulations are written. The system must be changed."

On the Senate floor today Reid said he had asked each of his soft-money donors if he could disclose their names, which was "somewhat embarrassing."

"Even though they consented, it wasn't an easy thing to do," Reid said.

Reid spokesman David Cherry said Reid didn't want to be portrayed as a criminal for merely following the law.

"We don't have anything to hide," Cherry said. "We're not ashamed of any of the people on the list. It continued to come up and was a sticking point."

Reid is one of 43 members of Congress known to keep a "nonfederal" account as part of their political action committees, according to FECInfo, a campaign money watchdog group.

The nonfederal money, so-called soft money, is not federally regulated, and soft-money donors can make unlimited contributions. "Hard money" donations, limited to $5,000, must be reported to the Federal Election Commission.

Politicians are not legally required to disclose soft-money account donors, so few do.

Reid's move was laudable, said Sheila Krumholz, research director for the Washington-based Center for Responsive Politics, a campaign money watchdog.

"It's ultimately money that will have an impact on the election, and voters should have all the information possible to make the best choices at the ballot box," Krumholz said.

She said other powerful politicians should follow Reid's lead.

"The donors are not giving that kind of money with no favors in mind, with no ulterior motives," Krumholz said. "It is incumbent on the press, the voters, and research groups to keep the pressure on to make sure this information sees the light of day."

FECInfo co-founder Tony Raymond also praised Reid.

"We're interested in disclosure," Raymond said. "Money follows power. It's good to know who is contributing to the candidacies. Whether you are for or against a certain candidate, it's good to know what interests are coming to bear."

Reid collected $264,882 in hard money in 1999, in addition to the $303,000 in soft money collected, according to Reid officials. Reid spent $190,574 in hard money and roughly $140,000 of his soft money, Reid political director Paul DiNino said.

Politicians traditionally use their soft money to help build influence in their states and Washington. Leaders in Congress who keep soft-money accounts include Senate Majority Leader Trent Lott, R-Miss.; Senate Minority Leader Tom Daschle, D-S.D., and House Minority Leader Richard Gephardt, D-Mo.

Reid, the No. 2 Democrat in the Senate, spent some of his soft money on political candidates in Nevada, among them Clark County Commissioner Yvonne Atkinson Gates and state Sens. Dina Titus and Joe Neal, among other Democratic state lawmakers, DiNino said.

Reid did not release itemized reports today on how the money was spent.

"You were the first to ask," DiNino said. "It's never enough. That's the problem -- there are no rules (on soft-money disclosure.)"

DiNino added, "I don't believe we've ever told a donor that in giving a (soft money) donation that no one will ever know it. That might discourage people from giving in the future, but I don't think so."