Ethical Violations At Clinton Foundation Tarnishing Clinton Brand And May Cripple Campaign

Following yesterday’s lengthy update on news regarding scandals involving the Clinton Foundation, there are three more items in the news today. As noted yesterday, Hillary Clinton failed to disclose over 1000 contributions made to the Foundation despite a written agreement with the Obama administration to disclose this information. The Boston Globe reports that a Clinton charity never provided foreign donor data.

An unprecedented ethics promise that played a pivotal role in helping Hillary Rodham Clinton win confirmation as secretary of state, soothing senators’ concerns about conflicts of interests with Clinton family charities, was uniformly bypassed by the biggest of the philanthropies involved.

The Clinton Health Access Initiative never submitted information on any foreign donations to State Department lawyers for review during Clinton’s tenure from 2009 to 2013, Maura Daley, the organization’s spokeswoman, acknowledged to the Globe this week. She said the charity deemed it unnecessary, except in one case that she described as an “oversight.”

During that time, grants from foreign governments increased by tens of millions of dollars to the Boston-based organization…

In 2009, the incoming Obama administration, Clinton, and then-Senator John F. Kerry all publicly touted the Clinton charities’ “memorandum of understanding’’ as a guarantee that transparency and public scrutiny would be brought to bear on activities that posed any potential conflicts of interest with State Department business…

Over the past several months, various news organizations have reported that individual parts of the memo were disregarded by the Boston charity. However, it has never before been clear that the memo was bypassed entirely.

Reuters reported in March that the organization didn’t disclose any donors to the public while Clinton was secretary of state. The Washington Post reported that a donation from Switzerland to the Clinton Health Access Initiative was not reviewed.

In Time, Joe Klein wrote about The Clinton Blind Spot: The former President’s fundraising—for his family and foundation—could cripple his wife’s campaign.

The charges leveled against the Clintons by Peter Schweizer in his book Clinton Cash, and confirmed by a raft of mainstream publications in recent weeks, cannot be dismissed as a right-wing hack attack. They are serious, though probably not criminal. The Clintons are too clever for smoking guns. The bottom line is that the Clinton Global Initiative was used not only to do great works around the world but also to enrich the Clintons. No doubt, there was a lot of self-delusion going on. Let’s take the case of Haiti, reported by Fox News. Bill Clinton was co-chair of a board to give out reconstruction contracts after the 2010 earthquake in that country. Some of the contracts went to Clinton Global Initiative donors, most of which were reputable and competent. A cell-phone contract went to an Irish businessman who had been a CGI donor; he asked Bill Clinton to make four speeches. The Clinton Foundation says several of the speeches were unpaid but acknowledges that contributions were made. No doubt, the lad was chuffed to be in the presence of Bill Clinton; no doubt, he made his contributions to the CGI in recognition of its excellent work. It is entirely possible that both men thought they were doing the Lord’s work. But their relationship also contained a friendly whiff of pay-for-play.

One of the most damning charges, if it turns out to be true—and I’ve not seen it disputed—is that since he left the presidency, Bill Clinton gave 13 speeches for $500,000 or more. He gave 11 of them while Hillary Clinton was Secretary of State. He was, and is, her closest adviser. You would have to assume a high-mindedness that surpasses all understanding to argue that these speeches, and the generosity of their funders, had not even a subliminal impact on the mind of the Secretary. Perhaps the most egregious, confirmed by the New York Times, was sponsored by Russian oligarchs—Schweizer claims some of them had KGB ties—for $500,000 as Clinton Global Initiative donors were selling their uranium-mining company, including U.S. assets, to the Russians. I believe that the Obama Administration’s “reset” with Russia was more than a shell game to enrich the Clintons, but you have to ask: What on earth was Bill Clinton thinking when he took the $500,000 from the friends of Vladimir Putin? What was he thinking when he accepted the “honorary” chancellorship and untold amounts of money from Laureate International Universities, whose affiliate was receiving ever increasing millions of dollars in aid from the State Department while Hillary Clinton was Secretary?

There is more than the appearance of impropriety here. There is the appearance of plutocracy. There is the reality of platinum–level membership in the society of the rich and self-righteous, whose predatory business practices can be forgiven because they “give back” gazillions—call them the egregiously charitable.

In recent days, I’ve spoken with a bunch of Democrats about the Clinton mess. Inevitably, their first reaction is political. The Clintons were “sloppy” but probably didn’t do anything illegal. It’s “good” that this came out early, they argue; it’ll be forgotten by the time the election rolls around. She’s still a lock for the Democratic nomination and probably the presidency, it is said. And how much worse is this than the parade of Republicans crawling to Las Vegas to kiss the ring of the loathsome Sheldon Adelson, in return for $100 million in campaign -contributions—or the Koch brothers’ auditions? Isn’t this what American politics is all about now?

There is a moral distinction, however, between campaign-related moneygrubbing and the appearance of influence peddling. And in practical political terms, while the Clinton Foundation crisis may not prove damaging during the primary campaign, it may come back to haunt Hillary in the general election—just as Bain Capital did Mitt Romney in 2012. True enough, my Democratic interlocutors say, but there’s a lot of real enthusiasm out there for Hillary. She’s historic. She’s smart and moderate and experienced. She’s probably better prepared for the presidency than any of her rivals. Then I ask them: Let’s leave the politics aside; how do you feel about the way the Clintons ran their foundation? “Nauseated,” said one. “Atrocious,” said another. “It’s no surprise,” said a third.

And I suppose that you do have to assume the worst about the Clintons—“to be cynical” about them, as the young reporter told me. How sad. Their behavior nudges up against the precise reason Americans, in both parties, have grown sick of politicians. It’s near impossible for Hillary Clinton to go around saying, with a straight face, much less a sense of outrage, that the “deck is stacked against” everyday Americans when Bill’s partying with the deck stackers. Even if the appearances of impropriety were for good causes, shouldn’t the arrant naiveté of it all disqualify her from the presidency?

Politico reports Clinton Foundation in campaign tailspin: Donors are having second thoughts about big giving as accusations fly about Hillary Clinton’s role.

A handful of deep-pocketed donors are reconsidering their gifts to the $2 billion Clinton Foundation amid mounting questions about how it’s spending their money and suggestions of influence peddling, according to donors and others familiar with the foundation’s fundraising.

One major donor who contributed at least $500,000 to the foundation last year said a 2015 donation is less likely because of revelations about sloppy record-keeping and huge payments for travel and administrative costs.

“There are a lot of factors and the reputational is among them,” said the donor, who did not want to be identified discussing philanthropic plans that have not been finalized. “We had some questions about how the money was being spent — and that was long before the problems were in the press.”

At least three other major donors also are re-evaluating whether to continue giving large donations to the Bill, Hillary & Chelsea Clinton Foundation, according to people familiar with its fundraising.

Update: Ron Fournier writes Hillary Clinton: Congenital Rule-Breaker.

Hillary Clinton doesn’t play by the rules.

That’s not a partisan attack. It’s not a talking point. It’s not a fantasy. It’s a fact—an agonizing truth to people like me who admire Clinton and her husband, who remember how Bill Clinton rose from a backwater governorship to the presidency on a simple promise: He would fight for people who “work hard and play by the rules.”

The evidence is overwhelming and metastasizing: To co-opt a William Safire line, Hillary Clinton is a congenital rule-breaker…

Technically a word such as habitual would have been more accurate than congenital, but that is hardly the point. Fournier cited recent headlines, including failure to disclose donors, before proceeding:

Just like that, the Clintons deemed an ethics rule unnecessary.

This was not an insignificant mandate. It was part of a “memorandum of understanding” between the White House and Clinton to soothe senators’ concerns about known conflicts of interest within the Clinton family charities.

“Transparency is critically important here, obviously, because it allows the American people, the media, and those of us here in Congress … to be able to judge for ourselves that no conflicts—real or apparent—exist,” John Kerry said during a Senate floor speech on January 21, 2009, according to the Globe.

Kerry replaced Clinton as secretary of State. Clinton is now the likely Democratic presidential nominee. She spoke with great passion Wednesday about the importance of institutional integrity in the wake of Baltimore’s riots.

We must urgently begin to rebuild the bonds of trust and respect among Americans—between police and citizens, yes, but also across society. Restoring trust in our politics, our press, our markets,” she said. “Between and among neighbors and even people with whom we disagree politically.”

Restoring trust in our politics? Let’s remember who and what’s behind this controversy:

Hillary Clinton seized all emails pertaining to her job as secretary of State and deleted an unknown number of messages from her private server. Her family charity accepted foreign and corporate donations from people doing business with the State Department—people who hoped to curry favor.

She violated government rules designed to protect against corruption and perceptions of corruption that erode the public’s trust in government. She has not apologized. She has not made amends: She withholds the email server and continues to accept foreign donations.

It’s past time Clinton come clean. Return the foreign donations. Hand over the email server. Embrace an independent investigation that answers the questions and tempers the doubts caused by her actions. Repeat: Her actions.

This is not the fault of a vast right-wing conspiracy, sexism, or unfair media coverage. It’s the result of actions taken by an experienced and important public servant whose better angels are often outrun by her demons—paranoia, greed, entitlement, and an ends-justify-the-means sense of righteousness.

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