The Cayman Islands of political fund-raising and gift-giving
By The Editorial Board, The News & Advance
Gift-giving rules must be tougher
It’s no wonder politicians and candidates for public office refer to Virginia as the Cayman Islands of political finance. There are few rules and no limits on the amount of gift giving to public office holders or those seeking public office.
The federal grand jury investigating gifts that Gov. Bob McDonnell and his family have received during his term in office should change that.
U.S. Sen. Tim Kaine, D-Va., raised that point last week at a luncheon sponsored by Virginia Free in Northern Virginia. The governor spoke at the annual gathering of Virginia business leaders and elected officials in Fairfax County. After his talk, he was hurried away from television and newspaper reporters. They were trying to get him to comment on the investigation being conducted on gifts to him and his family, notably the $15,000 given to his daughter to cover the catering cost of her wedding at the Executive Mansion two years ago.
The governor said he could not talk about the probe. “I came to talk about transportation and business,” he said. “I really can’t talk about it.”
Kaine, who also attended the gathering, said it was time for Virginia lawmakers to start talking about limits on gifts and political contributions to office holders. The former governor called on the General Assembly to impose strict limits on gifts, citing the much tougher rules that apply to members of Congress.
So what are the rules relating to gift-giving to members of Congress?
They are strict. A lobbyist can only give a gift to a member of the House or Senate if it’s worth less than $10. Lobbyists can never treat a member of Congress or a staff member to a meal. If a lobbyist is throwing a party, staffers and members can only go if the public is invited.
Another section of the rules applying to members of Congress defines gifts as anything of value, such as free meals, travel, hospitality (including dinner at the lobbyist’s home) and tickets or free attendance to receptions or events.
Campaign contributions are not considered gifts under the Honest Leadership and Open Government Act and are not addressed by the act. They are, however, covered by other rules relating to federal campaign finance, including some limits on financial contributions.
The federal probe into McDonnell’s gifts centers on Jonnie Williams Sr., chief executive officer of Star Scientific Inc., a firm that has shifted from making cigarettes to marketing a nutritional supplement and skin cream. The FBI is examining whether McDonnell and his family took gifts from Williams in exchange for favors that helped promote Star and its products.
Williams’ firm donated $108,500 worth of air travel to help elect McDonnell in 2009 and covered travel expenses during his tenure in office. Williams also paid $15,000 in catering expenses for the wedding in 2011 of the governor’s daughter.
McDonnell’s comments on acceptance of the catering fee stretch the imagination. He said he didn’t list the catering payment on his state financial disclosure forms because it was a gift to his daughter. The governor has said he has not given any person or company any special treatment.
“I hope the elected Virginia officials will look at this as an opportunity to make some improvements in the whole gift setup,” Kaine said.
They should. In the process, they could perhaps erase the state’s image as the Cayman Islands of political fund-raising and gift-giving.