-Caveat Lector-

She Used Dem Cash to Repay Muslim Gifts, Record Shows

By BOB PORT
NYDaily News Staff Writer

The day the news hit � that Hillary Rodham Clinton had accepted
some $50,000 in controversial donations from a Muslim group � the
First Lady was definitive in her reaction.  "I'm returning all
$50,000 � every single penny," she said.

But federal election reports released in Washington last week
show that Clinton, even though she kept her word, didn't do it
exactly the way she had implied during the campaign.

Members of the American Muslim Alliance, the group that gave to
Clinton, were given their contributions back.  But the refund
check came from a committee of the Democratic Party used to raise
soft money for the New York Senate race � not from Clinton's
campaign fund, which deposited the donations in June.

It wasn't until Nov.  14, a week after the election, that the
Democratic Party's soft-money committee was reimbursed for the
refunds with cash from Clinton's campaign fund, according to
these federal records.

By funneling the refunds through a party committee, which was
flush with cash, Clinton was technically able to make use of the
Muslim group's donations as her own "hard money" through Election
Day.

Hard money was more precious to the First Lady than soft money
during the last weeks of the campaign because she had agreed,
under pressure from opponent Rick Lazio, to not use soft money
for TV ads.

And so Clinton used the largess of her political party's soft
money � unrestricted donations from rich people, labor unions and
corporations � to make good on her promise to return "every
single penny" before Election Day, say the records.

Details of how the refund worked were not known until now because
federal election reports for the last three weeks of the campaign
did not have to be mailed until after the election.

When news of the Muslim donations surfaced, the total was
reported as $50,000 but it turned out to be inflated.  The new
records show that the refunds to 42 members of the American
Muslim Alliance totaled $38,100, well shy of the figure the group
had boasted of raising in its newsletter during a Boston
fund-raiser in June for Clinton.

A Clinton campaign official dismissed the circuitous route of the
refunds to the Muslim group as insignificant and routine.  "The
bottom line is that the money was returned to these individuals
in a timely manner," said spokeswoman Karen Dunn.

One exception to Clinton's soft-money technique was a separate
$1,000 refund to Abdurahman Alamoudi, a leader within the
American Muslim Council and an outspoken supporter of the
terrorist groups Hamas and Hezbollah.  Federal records show his
refund came four days earlier than others � and was paid directly
from Clinton's campaign fund Oct.  27.


Original Publication Date: 12/24/00

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