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Palin kept donations from tainted politicians

(Agencies)
Updated: 2008-09-26 10:43

JUNEAU, Alaska --Sarah Palin felt so strongly about the public corruption indictment of a Republican state senator this summer that she urged him to resign - but not strongly enough to return the $1,000 he gave to help elect her governor.

The donation from John Cowdery was one of two from Alaska legislators who contributed to Palin's 2006 campaign weeks after the FBI raided their offices. The sprawling public corruption scandal that followed became a rallying point for candidate Palin, who was swept into office after promising voters she would rid Alaska's capital of dirty politics.

Republican vice presidential candidate, Alaska Gov. Sarah Palins, arrives by plane in Philadelphia, Thursday, September 25, 2008. [Agencies]

One of the donors is awaiting trial and Cowdery was indicted in July on two federal bribery counts. Palin, now GOP presidential nominee John McCain's running mate, has not returned their donations, according to campaign finance disclosures reviewed Thursday.

Palin's campaign said it was looking into the matter Thursday following repeated requests for comment from The Associated Press.

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Over the years, both McCain and Democratic nominee Barack Obama have returned campaign donations tied to corruption, expressing regret in both cases. Obama's campaign says he's given to charity $159,000 tied to convicted Chicago real estate developer Antoin "Tony" Rezko. In the early 1990s, McCain returned $112,000 from Charles Keating, a central figure in the savings and loan crisis, after a Senate ethics inquiry.

The contributions to the Palin-Sean Parnell campaign fund do not suggest any wrongdoing - lawmakers typically spread donations around to other candidates, and none had any obvious connection to the rising Republican star before she took office.

The federal investigation revolves around an oil field services firm once known as VECO Corp., whose executives remain at the center of the trial of Alaska Sen. Ted Stevens that began this week in Washington.

Prosecutors say Stevens lied on his financial disclosure forms about more than $250,000 in home renovations and other gifts he received from VECO. In Alaska, the federal government has leveled more serious charges: That the company and its bosses systematically tried to corrupt lawmakers by plying them with money or gifts in exchange for their votes.

On Aug. 31, 2006, FBI agents searched the offices of six state lawmakers, including Cowdery and state Rep. Bruce Weyhrauch.

The government had secretly taped Cowdery in a conversation that prosecutors say proved he conspired with VECO officials to bribe legislators to support changes in Alaska's oil tax structure. Weyhrauch allegedly promised to support VECO's position in exchange for consideration for future work as a lawyer.

VECO quickly came to symbolize outsized corruption in Alaska and Palin was able to capitalize: As the GOP nominee for governor, she campaigned as an outsider and made a public point of saying she didn't want money from the company or its employees.

The same did not apply to lawmakers snagged in the federal investigation: By October 2006, Palin's campaign had received $30 from Weyhrauch in addition to Cowdery's $1,000. Separately, Cowdery's wife, Juanita, contributed $1,000; she is not accused of any wrongdoing.

The fact that Palin has kept Cowdery's donation is notable, given that on July 10, the day after he was indicted by a federal grand jury, the governor issued a statement asking him to "step down, for the good of the state." And a year earlier, Palin questioned whether Cowdery should retain his post leading a powerful Senate committee after a government witness claimed in a VECO-related trial that he was part of the bribery scheme.

Cowdery, who is not running for re-election this year, has denied wrongdoing. Weyhrauch, who no longer holds office, has pleaded not guilty and his trial is pending. Messages left for both men were not returned.

Palin is not alone: Cowdery and Weyhrauch also gave money ahead of the 2006 elections to seven state lawmakers and then-Gov. Frank Murkowski - and none has returned the donations, according to state records. Five of the legislators are still in office.

Earlier this month, the McCain campaign dismissed as meaningless media reports that Palin had received at least $4,500 from VECO employees during her unsuccessful 2002 run for lieutenant governor. At that time, VECO was untainted and still a powerful force in state politics.

Palin has $49,540 in her gubernatorial campaign fund, according to the latest disclosures filed with the state.