Internal Fire: Embattled RNC Chairman Michael Steele Faces New Questions Over Spending

ABC's Jonathan
Karl reports:

A GOP
civil war has broken out
between RNC Chairman Michael Steele and RNC Treasurer Randy Pullen.

The
dust-up reveals new levels
of dysfunction at the RNC and suggests the Republican National Committee
is
having real money problems.

In a
memo obtained by ABC News,
Pullen makes startling allegations against Steele’s chief of staff,
accusing
him of trying to hide unpaid invoices and causing the RNC not to report
more
than $7 million in debt in its April and May filings with the Federal
Election
Commission.

RNC
officials categorically
deny  charges – made by its own treasurer
– that Steele or his chief of staff tried to conceal any debt, but they
do
acknowledge that RNC did file amended reports for April and May
accounting for
the previously unreported debt.  RNC
spokesman Doug Heye says filing amended reports is “routine” and that
the debt
has now been entirely paid off.

In the
memo, Pullen also
expresses concern that RNC fundraising is down even as the amount the
RNC is
spending of fundraising is going up.

“It has
been clear to me and
others at the RNC since early March that fundraising has been falling
well
short of budgeted numbers,” Pullen writes. 
“In addition, costs of fundraising for major donor and direct
marketing
have been well above that budgeted going back to last year.“

Pullen
adds:  “Based on Daily Deposit reports through
July
19th, the current month looks to continue the decline in fundraising.”

The RNC
Treasurer – like the RNC
chairman – is elected to the post by members of the Republican National
Committee.  Pullen is seen as rival of
Steele’s and a potential candidate to replace him as RNC chairman.

-Jonathan Karl