Investigators find proof linking Clinton to Riady

Investigators find proof linking Clinton to Riady

WASHINGTON (AP): In the earliest evidence linking United States President Bill Clinton to a foreign donation, investigators have unearthed a 1992 memo indicating James Riady took a coveted private car ride with Clinton just before the Indonesian banker began writing checks that totaled half a million dollars.

Riady "will be giving US$100,000 to this event and has the potential to give much more," Clinton was told in a memo dated Aug. 14, 1992, that advised he would share a car ride that day with the Indonesian billionaire after a fund-raiser. Clinton was then the Democratic presidential nominee.

The memo, obtained by the Associated Press, was written by Melinda Yee, the Democratic Party's outreach director for Asian- Americans.

It said Riady, whose family controls the Lippo banking and industrial empire, wanted to talk to Clinton "about banking issues and international business" and the car ride was "a courtesy call."

Bank statements and memos reviewed by investigators show one of the 1992 donations from a Riady company was directly covered by foreign money and the rest were drawn on a personal account that appears to have been replenished -- before and after the donations -- with foreign funds. Some of the donations went to the Democratic Party's accounts that directly help federal candidates.

Clinton's schedule for that day says Riady greeted Clinton at the door of an Arkansas restaurant where the two attended a Democratic fund-raiser and then took a five-minute car ride.

In political circles, the one-on-one access of a car ride, no matter how brief, is a plum privilege.

The memo, schedule and checks were brought to the attention of the Justice Department months ago by congressional investigators.

Riady had a permanent green card and was a Clinton acquaintance from the 1980s when Riady worked in Arkansas. After Clinton's election, Riady was an occasional visitor to the White House, where he got direct access to Clinton.

White House officials said Clinton had no reason to suspect the donations.

"Mr. Riady... owned and continues to own American financial institutions that generate U.S. income," White House spokesman Jim Kennedy said. "In 1992, he was a lawful permanent resident and eligible to contribute to any political party.

Federal law forbids U.S. candidates and parties from accepting foreign money. The law allows foreigners who are legally and permanently residing in the United States to make donations.

U.S. subsidiaries of foreign companies can only donate if they use funds generated inside the United States.