PHOENIX (By Jon Kamman, Arizona Republic) December 29,
2004 - U.S. Rep. J.D. Hayworth's campaign committee failed five times to
disclose that a lobbyist or his Indian tribe clients provided sports
skyboxes used by the Arizona congressman for political fund-raisers several
years ago.
Hayworth's chief of staff, Joe Eule, said this week that Hayworth thought the boxes, used as an enjoyable setting for donors to gather and give financial support, were turned over to the congressman by two tribes, not a lobbyist now under federal investigation.
Eule said that neither he nor Hayworth had any contact with lobbyist Jack Abramoff regarding the skyboxes and that Hayworth had met Abramoff only once or twice elsewhere.
Hayworth did not respond to a request for an interview.
Whether Abramoff or the tribes provided the luxury boxes, food and drinks, the value of letting Hayworth use them should have been reported under campaign-finance laws, Eule acknowledged.
All the donations to Hayworth's funds were reported, Eule said, but the value of the box usage was not.
He said that reports covering the dates of the omissions will be amended as early as this week but that calculating the value is complicated.
The Federal Election Commission, which enforces campaign-finance laws, can fine candidates who fail to fully disclose donations or, as in this case, the value of goods and services provided as "in-kind" donations.
Fund-raisers by the Scottsdale Republican took place on five occasions from February 1999 to May 2001, long before revelations arose this year that Abramoff and an associate were engaging in unethical and possibly illegal practices in representing six tribes, all with casino gambling interests.
The boxes were at FedEx Field, home of the NFL's Washington Redskins; MCI Center in Washington, D.C., where the NBA's Wizards play; and Camden Yards, the Baltimore Orioles' baseball field.
In hearings in September and November, the Senate Indian Affairs Committee accused Abramoff and public-relations associate Michael Scanlon of exploiting Native Americans and working behind the scenes to influence some of their tribal elections while collecting what is calculated as $82 million in fees.
Both men, asserting their Fifth Amendment right not to testify, refused to answer questions at the Senate hearings. They have made no public comment since then.
Sen. John McCain, R-Ariz., played a leading role in the hearings and has pledged to continue the investigation when he becomes the committee's chairman in January.
McCain said at one of the hearings that "the extent and degree of the apparent exploitation and deceit" by the two men was "truly extraordinary." A federal grand jury and other government authorities also are conducting investigations.
Eule, again stressing that Abramoff was not directly involved in the sports-venue fund-raisers, said that he could not determine how much was raised for Hayworth's campaign committee and his separate political action committee, known as TEAM PAC, because years have passed.
He said the people who attended were "the normal PAC community, the people who would normally give to us."
Eule said Abramoff, for several years one of Washington's most influential lobbyists and a staunch supporter of Republicans, turned out to be "an absolute sleazeball."
Hayworth's fund-raisers were held with the belief that "our hosts were always the tribes," Eule said, identifying them as the Mississippi Band of Choctaw and the Chitimacha Tribe of Louisiana. At FedEx Field, he said, a picture of Choctaw Chief Phillip Martin hung on the skybox wall.
"Never once did we speak with Jack Abramoff about these boxes," Eule said.
The tribes reportedly provided funds for Abramoff to acquire the boxes, but unbeknownst to the Hayworth group, the suites were in the lobbyist's name, Eule said.
Disclosure of the value of using the skyboxes was something that "slipped through the cracks" all five times, Eule said.
Customarily, he said, a donor of in-kind services reports the value to the recipient, who is responsible for reporting it to the FEC. No statement of the value was forthcoming on these accommodations, so Hayworth's people called the lobbying firms representing the tribes and asked for one, he said, but to no avail.
Eule stressed that, although the calls went to the lobbying firms that employed Abramoff and the Hayworth camp knew Abramoff was the principal lobbyist for the tribes, none of the conversations was with Abramoff.
"My recollection is that we asked for a letter (declaring the value), never got one and, you know, time goes by and everybody's busy and it slipped through the cracks," Eule said.
FEC records show that Abramoff and his Choctaw and Chitimacha tribal clients donated to TEAM PAC within five days of Hayworth's first use of a skybox on Feb. 23, 1999. The donations, $1,000 from Abramoff and the maximum allowable $5,000 from each tribe, were the first ones received by the fledgling PAC from out-of-state interests.
Eule said the tribes gave and have continued to give even since firing Abramoff because they admire Hayworth and appreciate his stance on Indian issues.
Hayworth, elected in November to a sixth term and considered a likely candidate for governor in 2006, is co-chairman of the Native American Caucus. He has long been recognized as a leading advocate in behalf of tribes. He was one of the forces that stopped an attempt in 1997 to tax Indian casino revenue.
Eule said that the fund-raisers for the most part were to benefit Hayworth's own campaign re-election fund but that some donors at the first event also were asked to give to TEAM PAC. Some donors at later events may also have given to TEAM PAC, he said.
According to FEC records, Hayworth's own campaign fund has received about $28,000 from tribes and their representatives since 1999, but TEAM PAC has brought in more than $425,000 from those interests. The Indian contributions, from more than 40 tribes, represent two-thirds of the total $633,000 the PAC has received in six years.
Hayworth redistributes TEAM PAC money to other politicians, sometimes bringing goodwill from colleagues that could help him pass legislation or move into a leadership position in the House.
According to FEC records through the latest reporting period ending last month, TEAM PAC gave $233,000 to candidates and spent $270,000 on operational costs, including $55,000 in salary and payroll taxes for Hayworth's wife, Mary, the fund's only employee.
The five uses of sports boxes were the only items of value that Hayworth's campaign failed to report, Eule said.
At least two other Republican congressmen used the boxes for fund-raisers and failed to report the value, their staffs have acknowledged. Rep. John Doolittle of California used the box two days after Hayworth and is amending his FEC reports. Rep. Robert Ney of Ohio recently filed amended FEC reports for uses in 2002 and 2004.
In addition, the Washington Post reported that House Majority Leader Tom DeLay, one of Abramoff's most powerful contacts as a lobbyist, used a skybox at least once and did not report the value. His staff said funds went to his state political action committee and therefore did not need to be disclosed on the federal level, the newspaper reported.
Eule said Hayworth learned of the omissions in his own reports when a Post reporter inquired this month.
Hayworth's chief of staff, Joe Eule, said this week that Hayworth thought the boxes, used as an enjoyable setting for donors to gather and give financial support, were turned over to the congressman by two tribes, not a lobbyist now under federal investigation.
Eule said that neither he nor Hayworth had any contact with lobbyist Jack Abramoff regarding the skyboxes and that Hayworth had met Abramoff only once or twice elsewhere.
Hayworth did not respond to a request for an interview.
Whether Abramoff or the tribes provided the luxury boxes, food and drinks, the value of letting Hayworth use them should have been reported under campaign-finance laws, Eule acknowledged.
All the donations to Hayworth's funds were reported, Eule said, but the value of the box usage was not.
He said that reports covering the dates of the omissions will be amended as early as this week but that calculating the value is complicated.
The Federal Election Commission, which enforces campaign-finance laws, can fine candidates who fail to fully disclose donations or, as in this case, the value of goods and services provided as "in-kind" donations.
Fund-raisers by the Scottsdale Republican took place on five occasions from February 1999 to May 2001, long before revelations arose this year that Abramoff and an associate were engaging in unethical and possibly illegal practices in representing six tribes, all with casino gambling interests.
The boxes were at FedEx Field, home of the NFL's Washington Redskins; MCI Center in Washington, D.C., where the NBA's Wizards play; and Camden Yards, the Baltimore Orioles' baseball field.
In hearings in September and November, the Senate Indian Affairs Committee accused Abramoff and public-relations associate Michael Scanlon of exploiting Native Americans and working behind the scenes to influence some of their tribal elections while collecting what is calculated as $82 million in fees.
Both men, asserting their Fifth Amendment right not to testify, refused to answer questions at the Senate hearings. They have made no public comment since then.
Sen. John McCain, R-Ariz., played a leading role in the hearings and has pledged to continue the investigation when he becomes the committee's chairman in January.
McCain said at one of the hearings that "the extent and degree of the apparent exploitation and deceit" by the two men was "truly extraordinary." A federal grand jury and other government authorities also are conducting investigations.
Eule, again stressing that Abramoff was not directly involved in the sports-venue fund-raisers, said that he could not determine how much was raised for Hayworth's campaign committee and his separate political action committee, known as TEAM PAC, because years have passed.
He said the people who attended were "the normal PAC community, the people who would normally give to us."
Eule said Abramoff, for several years one of Washington's most influential lobbyists and a staunch supporter of Republicans, turned out to be "an absolute sleazeball."
Hayworth's fund-raisers were held with the belief that "our hosts were always the tribes," Eule said, identifying them as the Mississippi Band of Choctaw and the Chitimacha Tribe of Louisiana. At FedEx Field, he said, a picture of Choctaw Chief Phillip Martin hung on the skybox wall.
"Never once did we speak with Jack Abramoff about these boxes," Eule said.
The tribes reportedly provided funds for Abramoff to acquire the boxes, but unbeknownst to the Hayworth group, the suites were in the lobbyist's name, Eule said.
Disclosure of the value of using the skyboxes was something that "slipped through the cracks" all five times, Eule said.
Customarily, he said, a donor of in-kind services reports the value to the recipient, who is responsible for reporting it to the FEC. No statement of the value was forthcoming on these accommodations, so Hayworth's people called the lobbying firms representing the tribes and asked for one, he said, but to no avail.
Eule stressed that, although the calls went to the lobbying firms that employed Abramoff and the Hayworth camp knew Abramoff was the principal lobbyist for the tribes, none of the conversations was with Abramoff.
"My recollection is that we asked for a letter (declaring the value), never got one and, you know, time goes by and everybody's busy and it slipped through the cracks," Eule said.
FEC records show that Abramoff and his Choctaw and Chitimacha tribal clients donated to TEAM PAC within five days of Hayworth's first use of a skybox on Feb. 23, 1999. The donations, $1,000 from Abramoff and the maximum allowable $5,000 from each tribe, were the first ones received by the fledgling PAC from out-of-state interests.
Eule said the tribes gave and have continued to give even since firing Abramoff because they admire Hayworth and appreciate his stance on Indian issues.
Hayworth, elected in November to a sixth term and considered a likely candidate for governor in 2006, is co-chairman of the Native American Caucus. He has long been recognized as a leading advocate in behalf of tribes. He was one of the forces that stopped an attempt in 1997 to tax Indian casino revenue.
Eule said that the fund-raisers for the most part were to benefit Hayworth's own campaign re-election fund but that some donors at the first event also were asked to give to TEAM PAC. Some donors at later events may also have given to TEAM PAC, he said.
According to FEC records, Hayworth's own campaign fund has received about $28,000 from tribes and their representatives since 1999, but TEAM PAC has brought in more than $425,000 from those interests. The Indian contributions, from more than 40 tribes, represent two-thirds of the total $633,000 the PAC has received in six years.
Hayworth redistributes TEAM PAC money to other politicians, sometimes bringing goodwill from colleagues that could help him pass legislation or move into a leadership position in the House.
According to FEC records through the latest reporting period ending last month, TEAM PAC gave $233,000 to candidates and spent $270,000 on operational costs, including $55,000 in salary and payroll taxes for Hayworth's wife, Mary, the fund's only employee.
The five uses of sports boxes were the only items of value that Hayworth's campaign failed to report, Eule said.
At least two other Republican congressmen used the boxes for fund-raisers and failed to report the value, their staffs have acknowledged. Rep. John Doolittle of California used the box two days after Hayworth and is amending his FEC reports. Rep. Robert Ney of Ohio recently filed amended FEC reports for uses in 2002 and 2004.
In addition, the Washington Post reported that House Majority Leader Tom DeLay, one of Abramoff's most powerful contacts as a lobbyist, used a skybox at least once and did not report the value. His staff said funds went to his state political action committee and therefore did not need to be disclosed on the federal level, the newspaper reported.
Eule said Hayworth learned of the omissions in his own reports when a Post reporter inquired this month.
