Companies Buy Influence at Conventions
July 26, 2004 -- Big business is underwriting most of the $104 million to stage both the Democratic and Republican national conventions this year. It's the kind of corporate meddling the McCain-Feingold campaign finance law was supposed to end when it was passed two years ago.
But a loophole for conventions in the legislation means the corrupting role of big money in politics is still a persistent problem.
Case in point: One powerful company, Time Warner, sponsored a lavish party and fireworks show Sunday night at Boston Harbor for the benefit of one powerful politician — California's Nancy Pelosi, the House Democratic leader.
It is just one of some 250 such corporate events scheduled this week in Boston, thanks to a loophole established by Congress for both parties' conventions.
According to regulations issued last August, the Federal Election Commission allows unlimited, tax-exempt donations to convention host committees, with the understanding that such contributions are ''motivated by a desire to promote the convention city and not by political considerations."
Fred Wertheimer, president and founder of Democracy21.com, a nonpartisan watchdog organization, thinks the loophole allows lobbyists to infuse the parties with large sums of soft money.
"I can't give you $51 as a member of Congress, but I can throw a $100,000 party or a $200,000 party which is your party. It's an ethics-free zone for these kinds of events and it's wrong," said Wertheimer.
Partying or Politicking?
At Sunday night's Boston waterfront party, Time Warner Chairman Richard Parsons enjoyed almost two hours of access to Pelosi.
His cable and telecommunications company has a variety of issues before Congress and is under investigation by the Securities and Exchange Commission.
"The companies know what they're doing, and the people being honored know why the check is being picked up," Wertheimer said.
An ABC News crew sought comment from Pelosi at the event, but she ducked the cameras and went on to her next event.
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