Probe looms over Riady's U.S. campaign donations

Probe looms over Riady's U.S. campaign donations

WASHINGTON (Agencies): House of Representatives Speaker Newt
Gingrich predicted on Sunday that congressional and criminal
investigations would be launched into a $425,000 contribution by
Indonesian businessman James Riady to the Democratic Party.

"I think it's unavoidable that there will be congressional
investigations, it is unavoidable that there will be a special
counsel," Gingrich told CBS television.

"This makes Watergate look tiny.

"This is a potential abuse of the American system on behalf of
an Indonesian billionaire in a way we have never seen in American
history," he said.

The White House last week, responding to several press reports
about campaign contributions, said the Clinton campaign had acted
legally and dismissed questions about impropriety.

James Riady, whose family control the Lippo Bank and Lippo
business group, contributed hundreds of thousands of dollars to
Clinton campaigns since he was Arkansas governor, Newsweek
magazine reports in its latest edition.

Newsweek also reported that the U.S. Import-Export Bank has
issued letters of credit for $900,000 to Lippo Bank, which at one
time also pushed for U.S. government financing for a $1 billion
project to build a power plant in northern China.

Bank director Maria Luisa Haley, a Clinton appointee, told
Newsweek the China deal fell through, but that a total of
$900,000 in credit for other projects had been approved.

Newsweek said the Riady family declined to comment on its
report, and the White House said there was no evidence that
Clinton ever intervened to help them.

Riady's ties to Clinton have been fiercely attacked by
Republicans, who say the wealthy Indonesian has exerted influence
over the president by contributing to his political causes and
his inauguration.

Attention has focused particularly on John Huang, a former
vice chairman of Lippo's California banking subsidiary who moved
on to become vice finance chairman of the Democratic National
Committee.

Huang "has raised millions from Asian sources" for Clinton's
re-election effort, Newsweek said, including a gift of $425,000
from Arief Wiriandinata, the son-in-law of a major investor in
Riady's Lippo Group.

White House spokesman Mike McCurry told reporters on Friday
suggestions that the Riady's family's support of Clinton was
improper, bordered on an ethnic slur.

McCurry said Riady, a 39-year-old businessman who lives in
Jakarta, got to know Clinton when he was Arkansas governor "and
the fact that they became friendly and are among his supporters
should come as no surprise."

U.S. campaign finance law is aimed at preventing foreigners
from wielding influence in the U.S. political system, but there
are loopholes that allow American subsidiaries to make donations.

Gingrich on Sunday said probes are likely into that matter as
well as other campaign contributions from abroad.

He said the probes should find out "how many green card-
holders have been solicited by the Clinton administration and are
funneling Asian money from China, from Korea, from Indonesia into
the Democratic Party to try to buy an election."

Gingrich also questioned the dealings of a former Clinton
administration Commerce Department employee "who was the personal
representative of this Indonesian billionaire" and is now a
Democratic Party fund raiser.

The speaker also maintained that "the Department of Commerce
cut a deal with China worth a billion dollars ... to this
Indonesian billionaire."

Clinton campaign director Joe Lockhart, traveling with the
president, said Gingrich should worry about his own ethics
investigations in Congress about improper use of funds.

"I think Speaker Gingrich should have a pretty deep insight
before he starts throwing stones about the ethical issues,"
Lockhart said. "He has had his own series of ethical problems, a
very serious investigation about his ethical behavior. I think he
should focus on himself for a while."