Study findings for “Indictment of a System”

Introduction

Actions Similar to DeLay’s Disputed Transactions

• At least 30 other members of Congress have accepted a total of $7.8 million in corporate donations to their leadership 527 committees since 2000, a Center analysis has found. These organizations transferred $3.5 million to national party committees, which later gave $14 million to candidates in state elections.
• The use of these corporate donations took place on both sides of the congressional aisle, with 13 Democrats and 18 Republicans making similar transactions until the 2002 election, when a federal law went into effect forbidding federal lawmakers to have 527 organizations.
• Some of the corporate donors that gave the most money to these congressional leadership 527s include: AT&T with $716,000 in contributions; SBC Corp. with $698,000; and Philip Morris (now Altria) with $486,000.
• While Texas is one of 23 states that prohibits the use of such corporate donations to candidates in state elections, 27 states allow some use of corporate funds in state races.
• Rep. Roy Blunt, R-Mo., who has temporarily replaced Tom DeLay as House majority leader, accepted more than $1 million in contributions from corporations to his organization Rely On Your Beliefs Fund. Missouri allows corporate donations to state candidates, political action committees and parties. Blunt’s 527 sent only a small amount of money to a national party committee, but sent $661,000 directly to the Missouri Republican State Committee.
• The Center also has found that another DeLay 527, Americans for a Republican Majority Non-Federal Account, has received more than $1.7 million in corporate money and made almost $250,000 in transfers to national party committees.

More Activity by Companies named in the DeLay Indictment

• The Center’s study found that many of the same companies named in the DeLay indictment also made large donations to leadership 527s run by other members of Congress. A total of 12 legislators accepted more than $300,000 from four of these same six companies.
• Blunt has received contributions from four of the same companies implicated in the DeLay indictment: Diversified Collection Services Inc. ($50,000); Bacardi U.S.A. Inc. ($5,000); Sears, Roebuck and Co. ($4,000); and Cornell Companies Inc. ($5,000).
• DeLay accepted another $50,000 from these companies to another 527 he ran, Americans for a Republican Majority Non-Federal Account. The donations included $25,000 from Sears Roebuck and Co.; $20,000 from Bacardi USA Inc.; and $5,000 from Diversified Collection Services Inc. These transactions and this 527 group were not named in the first indictment.