WorldCom Directed Money to Democrats, GOP

W A S H I N G T O N, June 26 -- The political world's perspective about WorldCom's precipitous slide may not fit too neatly into the conventional view among Democrats that Republican coddling of corporate interests is responsible for lax enforcement on Wall Street and in Congress.

That's because the telecommunications giant has contributed as much so-called soft money to Democrats as it has given to Republicans, according to an ABCNEWS analysis of Federal Election Commission records of such contributions.

And, according to analysis of "hard-money" contributions conducted by the Political Money Line Web site, WorldCom's political action committee has given a majority of hard-money donations to Democrats and their campaigns — 56 percent to 44 percent. That money includes $36,000 for Republicans on the House subcommittee that marks up telecommunications legislation and more than $40,000 for subcommittee Democrats.

Recipients of the PAC's money include many members of the Subcommittee on Telecommunications and the Internet, as well several senators who have jurisdiction over similar matters.

Corporations like WorldCom are prohibited from directly contributing to political campaigns, but they can pool donations to political action committees. And they can raise and spend as much "soft money" as they want. Campaign contributions are considered "soft" when they're raised and spent without being subject to federal election law. The money is held in separate, nonfederal bank accounts and can't be directed to electioneering activity.

Until the new campaign-finance law takes effect Nov. 6, corporations, unions and individuals can spend as much soft money as they want to get out their vote, promote the party, and sign up new voters.

Hard and Soft Coffers

WorldCom checks totaling $400,000, spread evenly between Republicans and Democrats, have been deposited in party soft-money accounts this election cycle, according to the finance records.

In 1999 and 2000, it gave more than $723,000 worth of soft money.