Obama’s Fundraising Comes Under Scrutiny

Last week, the Obama campaign reported that it had a $52 million haul in the month of June. In releasing this information, Obama campaign manager David Plouffe wrote in an e-mail to supporters that:

“You continue to prove what ordinary Americans committed to change can accomplish, despite the Washington lobbyists and special interest PACs funding so much of our opponents’ campaign.”

Two articles in the US media point to what I have long been saying about Obama’s duplicitous statements on where his money is coming from and it is not from “ordinary Americans”. It is from corporate interests and Washington lobbyists and yes PAC money. The only difference is that backhanded manner in which Obama collects his millions.

The first article is from the Los Angeles Times in article by Dan Morain entitled Donations to Obama campaign include some biggies:

Even as he touts his base of small donors, Barack Obama is relying heavily on well-heeled contributors who have given $28,500 or more each to Democratic Party committees that will campaign on his behalf.

Obama aides emphasized that the average donation to his campaign in June — during which he brought in $52 million — was $68. Over the course of his campaign, the presumed Democratic presidential nominee has raised $340 million. By law, an individual can give no more than $2,300 to a candidate for the primary and $2,300 for the general election.

Obama has established joint fundraising agreements with the Democratic National Committee and two other party committees. Those entities can raise larger sums and spend unlimited amounts on behalf of individual candidates.

Of the $20.3 million Obama’s joint fundraising committees amassed in June, 86%, or $17.6 million, came in chunks of $5,000 or more; 64% came in increments of $28,500 or more, campaign finance reports filed over the weekend show.

Frank Clark, head of Commonwealth Edison, which supplies electricity to Chicago, gave $2,300 to Obama early in the campaign and $28,500 last month to the Democratic White House Victory Fund.

John Rogers, founder of the Chicago investment house Ariel Capital, also gave the maximum to Obama’s presidential account, and $13,000 to Democratic White House Victory.

According to the campaign, Clark and Rogers are among Obama’s largest fundraisers, each having raised more than $200,000 from friends and associates.

Employees at Exelon, the parent company of Commonwealth Edison, have given more than $180,000.

Obama spokesman Ben LaBolt noted that the campaign, unlike the Democratic Party and the fundraising committees, has tapped small donors, raising the bulk of its money in increments of less than $90.

Michael J. Malbin, executive director of the nonpartisan Campaign Finance Institute, said that although Obama had raised an unprecedented $165 million from those who donated in increments of less than $200, “he cannot raise $150 million or whatever his budget says he needs without going to large contributors.”

The presumptive Republican nominee, John McCain, also has joint fundraising committees and will probably rely heavily on them in the fall.

Such committees appeal to candidates and donors because contributors can write a single check and have it split among the candidate, the party and related committees.

A review of the campaign finance reports filed over the weekend with the Federal Election Commission showed that attorneys accounted for at least $2.4 million of the $20.3 million the three Obama joint committees raised.

People who listed their occupations as investors or said they worked for investment houses contributed at least an additional $2.85 million. Individuals who said they were chief executive officers, company presidents or board chairmen chipped in $1.8 million. The entertainment industry accounted for $1.5 million.

McDonald’s President Donald Thompson and Pepsi Chairman Robert Pohlad each gave $28,500. The Pohlad family, including Minnesota Twins owner Carl Pohlad, gave a combined $170,000 to Democratic committees.

Entertainers who donated $28,500 to the committees include producers Frederick W. Field and Steven Bochco and his wife, Dayna, and actors Samuel L. Jackson and Edward Norton.

NBA star LeBron James donated $20,000.

In several instances, couples doubled their donations. Professional poker player Phil Ivey and his wife, Luciaetta, for example, each gave $33,100 to the Obama Victory Committee. New York writer and entrepreneur Steven Brill and his wife, attorney Cynthia Brill, donated $61,600 last month, with $4,600 going to Obama’s presidential campaign and the rest going to one of the party’s joint fundraising committees.

The Exelon donations are particulary interesting. Since 2003, executives and employees of Exelon, which is based in Illinois, have contributed at least $227,000 to Mr. Obama’s campaigns for the United States Senate and another $180,000 for President. That’s $400,000 from the upper echelons of the nation’s largest nuclear power firm. Two top Exelon officials, Frank M. Clark, executive vice president, and John W. Rogers Jr., a director, are among his largest fund-raisers.

Another Obama donor, John W. Rowe, chairman of Exelon, is also chairman of the Nuclear Energy Institute, the nuclear power industry’s lobbying group, based in Washington. Exelon’s support for Mr. Obama far exceeds its support for any other presidential candidate. In addition, Mr. Obama’s chief political strategist, David Axelrod, has worked as a consultant to Exelon. A spokeswoman for Exelon said Mr. Axelrod’s company had helped an Exelon subsidiary, Commonwealth Edison, with communications strategy periodically since 2002.

You got to love this one degree of separation because in 2005 during Obama’s first year in the Senate, Exelon Corporation failed to disclose some radioactive leaks from a nuclear power plant sixty miles south of Chicago. Naturally when the leaks came to light, residents were less than thrilled. Obama railed against the firm publicly but then proceed to help out the company in the subterfuge that is the United States.

First, Obama worked to pass a bill to require all plant owners to notify state and local authorities immediately of even small leaks. He has boasted of it on the campaign trail, telling a crowd in Iowa in December that it was “the only nuclear legislation that I’ve passed.” The only thing it passed was its committee; the bill died on the Senate floor.

In March 2006, Senator Obama introduced a bill known as the Nuclear Release Notice Act of 2006. The bill S109-2348 stated flatly that nuclear plants “shall immediately” notify federal, state and local officials of any accidental release of radioactive material that exceeded “allowable limits for normal operation.” Like all of Obama’s legislation, the bill never became law. This was largely due to the fact that Exelon objected to the provisions of bill and complained to Senator Obama’s office. Facing pushback from his major donor, Obama then worked with Senator James Inofe of Oklahoma to insert provisions into another bill that gave the Nuclear Energy Institute whose chair is also the CEO of Exelon to assist the Nuclear Regulatory Commission in writing the technical standards of what constitute “allowable limts for normal operation.” The language of the bill was also changed. In place of Obama’s original straightforward reporting requirements was new language giving the nuclear commission two years to come up with its own regulations. The bill said that the commission “shall consider” — not require — immediate public notification, and also take into account the findings of a task force it set up to study the tritium leaks.

Oh the things that money can buy. In this case, John W. Rowe, chairman of Exelon and chair of the Nuclear Energy Institute, the industry association that was now assisting US Nuclear Regulatory Commission with the technical standards of what constitutes a leak, bought in effect the words “shall consider.” Of course, John W. Rowe is just an “ordinary American” as Obama campaign manager David Plouffe suggests. John W. Rowe is just an “ordinary American” who according to Forbes’ 2005 list of Executive Pay was paid $11.5 mil in total compensation. But don’t fret, this “ordinary American” is on up and up. According to Reuters, John W. Rowe earned $19,491,556 in total compensation in 2007.

The second article is from US News & World Report in article written by Bonnie Erbe entitled Barack Obama’s Fundraising Hypocrisy—a Lobbyist by Any Other Name…:

The latest campaign finance figures show Sen. Barack Obama’s pledge not to take money from lobbyists is a distinction without a difference.

He clobbered Sen. John McCain in fundraising last month, netting more than twice the amount of money raised by his rival. From Bloomberg:

Obama took in $51.9 million in June, including $1.4 million from a joint fundraising committee with the Democratic National Committee, while McCain reported raising $21.5 million, including $5.1 million from his fundraising effort with the Republican National Committee.

But consider whence much of Obama’s money comes. While donations to his campaign are not accepted from lobbyists per se, they are proffered by corporate executives. These same executives face a mountain of federal issues on which they will most surely need Obama’s help, should he win the White House in November. So what’s the difference?

To wit. Bloomberg reported that donors to Obama’s joint fundraising committee included Jay Grinney, president and chief executive officer of Birmingham, Ala.-based HealthSouth Corp., who gave $10,000, and Donald Thompson, U.S. chief of Oak Brook, Ill.-based McDonald’s Corp., who gave $28,500, the maximum.

As I’ve noted before, Sen. Obama’s fourth-largest corporate donor is Exelon, the nation’s largest provider of nuclear power.

Did he take donations straight from the pockets of the company’s lobbyists? No. But did he accept largesse in the amount of more than a quarter million dollars from Exelon’s CEO and top executives? Yes. In the process, he watered down to oblivion an antinuclear amendment he had sponsored, originally to force nuclear power producers to report even the most negligible of radioactive leaks. He then went on to tell mesmerized campaign audiences he had “passed” his antinuclear bill, which never passed the U.S. Senate.

Meanwhile, the Obama campaign disinvited Democratic war hero and former Sen. Max Cleland to appear at an Obama event in Atlanta earlier this month. Why? Sen. Cleland is a registered lobbyist.

John McCain openly accepts lobbyists’ donations. And some voters find that as much of a conflict (because Senator McCain has his name attached to the most important campaign finance reform bill of the last two decades.) The difference between McCain and Obama on this issue is McCain has never pledged not to take lobbyists’ donations. He has only pledged to fight to make the process as transparent as possible.

It is, of course, reassuring to see these articles in the media. However is anybody reading them?

From my blog, By The Fault.