Leftists Groups Seeking to Weaken Corporate Power

Corporate boards asked to limit their political donations
The letters were sent by groups hoping to make directors aware of the state's law

By R.G. RATCLIFFE
Copyright 2005 Houston Chronicle Austin Bureau

AUSTIN - Four campaign-finance reform organizations said Thursday that they have sent letters to more than 400 corporate board members asking them to adopt new company policies to limit corporate donations in American politics.

The targeted boards oversee 54 companies that donated $2.3 million to the Texas Association of Business or Texans for a Republican Majority, TRMPAC, to influence the 2002 Texas House elections.

Both groups are under indictment for violating state campaign finance laws. U.S. Rep. Tom DeLay, R-Sugar Land, who founded Texans for a Republican Majority also faces campaign finance law-related criminal charges as do two of his political associates. All say they are innocent.

The letters to the corporate directors were sent out by the state directors of Common Cause of Texas, Public Citizen, Texans for Public Justice and Campaigns for People.

"We're not even sure whether the 400 outside directors of these corporations are aware that their corporations gave money to Tom DeLay's TRMPAC or TAB," said Craig McDonald of Texans for Public Justice. "We want to make sure those corporate directors are aware."

McDonald noted that eight of the 54 corporations were indicted in the investigation run by Travis County District Attorney Ronnie Earle.

"There were many more than eight corporations that participated in funding and enabling the activities of TRMPAC and TAB," McDonald said.

Four of the indicted corporations have settled outside of court without admitting fault.

Suzy Woodford of Common Cause said most corporations make their donations through executive committees that give the board of directors deniability if something goes wrong.

"We need to hold the board of directors accountable for the use of corporate money in elections," Woodford said.

Tom "Smitty" Smith of Public Citizen said the Texas law banning most corporate money in elective politics has been in place for more than 100 years. He said corporations need to start honoring it.

The joint letter called on the corporate boards to adopt standards outlined by the Center for Political Accountability in Washington, D.C. The core portions of those standards are that corporate boards take control of political donations made by the company and that they report all political spending to corporate shareholders.

Seems to me that this letter would have been better directed to Ronnie Earle who seems to have a penchant for blackmailing corporations into donating to his personal favorite charities. However, as no laws have been broken and these charges against DeLay are total garbage, the letters are simply a ploy to attempt to frighten corporations out of donating to Republican causes. Campaign finance laws are an unconstitutional restriction of the right of freespeech.

Full Story: The Old Lefty Con

What do you think?

To leave your opinion click on the word "COMMENT(S)" below