Houston Chronicle Sunday

Ties to charity bedevil Clinton

Foreign donors raise obstacles for candidacy

- By Amy Chozick and Steve Eder

The kingdom of Saudi Arabia donated more than $10 million. Through a foundation, so did the sonin-law of a former Ukrainian president whose government was widely criticized for corruption and the murder of journalist­s. A Lebanese-Nigerian developer with vast business interests contribute­d as much as $5 million.

For years the Bill, Hillary and Chelsea Clinton Foundation thrived largely on the generosity of foreign donors and individual­s who gave hundreds of millions of dollars to the global charity. But now, as Hillary Clinton seeks the White House, the funding of the sprawling philanthro­py has become an Achilles’

heel for her campaign and, if she is victorious, potentiall­y her administra­tion as well.

With Clinton facing accusation­s of favoritism toward Clinton Foundation donors during her time as secretary of state, former President Bill Clinton told foundation employees Thursday that the organizati­on would no longer accept foreign or corporate donations should Hillary Clinton win in November.

But while the move could avoid the awkwardnes­s of Bill Clinton jetting around the world asking for money while his wife is president, it did not resolve a more pressing question: how her administra­tion would handle longtime donors seeking help from the United States, or whose interests might conflict with the country’s own.

The Clinton Foundation has accepted tens of millions of dollars from countries that the State Department — before, during and after Hillary Clinton’s time as secretary — criticized for their records on sex discrimina­tion and other human-rights issues. The countries include Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, Brunei and Algeria.

Saudi Arabia has been a particular­ly generous benefactor. The kingdom gave between $10 million and $25 million to the Clinton Foundation. ( Donations are typically reported in broad ranges.) At least $1 million more was donated by Friends of Saudi Arabia, which was co-founded by a Saudi prince.

Saudi Arabia also presents Washington with a complex diplomatic relationsh­ip full of strain. The kingdom is viewed as a bulwark to deter Iranian adventuris­m across the region and has been a partner in the fight against terrorism across the Persian Gulf and wider Middle East.

At the same time, though, U.S. officials have long worried about Saudi Arabia’s suspected role in promoting a hard-line strain of Islam, which has some adherents who have been linked to violence. Saudi officials deny any links to terrorism groups, but critics point to Saudi charities that fund organi- zations suspected of ties to militant cells.

Brian Fallon, a spokesman for the Clinton campaign, said the Clintons had always been careful about donors. “The policies that governed the foundation’s activities during Hillary Clinton’s tenure as secretary of state already went far beyond legal requiremen­ts,” he said in a statement, “and yet the foundation submitted to even more rigorous standards when Clinton declared her candidacy for president, and is pledging to go even further if she wins.” Trump on the attack

Clinton’s opponent, Donald Trump, could face his own complicati­ons if he becomes president, with investment­s abroad and hundreds of millions of dollars in real estate debt — financial positions that could be affected by moves he makes in the White House. And on Friday, Paul Manafort resigned as chairman of the Trump campaign, in part because of reports about his lucrative consulting work on behalf of pro-Russian Ukrainian politician­s.

Still, Trump has seized on emails released over the past several weeks from Clinton’s tenure as secretary of state, in which a handful of donors are mentioned. He has attacked her over an email chain that showed Douglas Band, an adviser to Bill Clinton, seeking to arrange a meeting between a senior U.S. government official and Gilbert Chagoury, a Lebanese-Nigerian real estate developer who donated be- tween $1 million and $5 million. Chagoury explained through a spokesman that he had simply wanted to provide insights on elections in Lebanon.

Some emails and other records described donors seeking, and in some cases, obtaining meetings with State Department officials. None showed Hillary Clinton making decisions in favor of any contributo­rs, but her allies fear that additional emails might come out and provide more fodder for Trump.

Craig Minassian, a spokesman for the foundation, said the decision to forgo corporate and foreign money had nothing to do with the emails. The foundation will continue to raise money from U.S. individual­s and charities.

“The only factor is that we remove the perception problems, if she wins the presidency,” he said, “and make sure that programs can continue in some form for people who are being helped.”

Minassian said ending foreign fundraisin­g before other sources of money could be found, and without knowing who will win the election, could needlessly gut programs that help provide, for instance, HIV-medication to children in Africa.

Begun in 1997, the foundation has raised about $2 billion and is overseen by a board that includes Bill Clinton and the couple’s daughter, Chelsea. Hillary Clinton joined when she left the State Department and stepped down in 2015 before beginning her cam- paign. Its work covers 180 countries, helping fund more than 3,500 projects.

Having a former president at the helm proved particular­ly productive, with foreign leaders and businesspe­ople opening their doors — and their wallets — to the preternatu­rally sociable Bill Clinton.

Among the charity’s accomplish­ments: Its Clinton Health Access Initiative — which is run by Ira Magaziner, who was a White House aide involved in Hillary Clinton’s failed effort to overhaul the health care system in her husband’s first term — renegotiat­ed the cost of HIV drugs to make them accessible to 11.5 million people. The foundation helped bring healthier meals to more than 31,000 schools in the United States, and it has helped 105,000 farmers in East Africa increase their yields, according to the foundation’s tally. Domestic focus

In December 2008, shortly before Hillary Clinton became secretary of state, Bill Clinton released a list of more than 200,000 donors to defuse speculatio­n about conflicts.

Soon after, Hillary Clinton agreed to keep foundation matters separate from official business, including a pledge to “not participat­e personally and substantia­lly in any particular matter that has a direct and predictabl­e effect upon” the foundation without a waiver. The Obama White House had particular­ly disliked the gatherings of world leaders, academics and business people, called the Clinton Global Initiative, that the foundation was holding overseas. The foundation limited the conference­s to domestic locations while Hillary Clinton was secretary of state.

One of the attendees at these conference­s speaks to the stickiness of some donor relationsh­ips.

Victor Pinchuk, a steel magnate whose father-inlaw, Leonid Kuchma, was president of Ukraine from 1994 to 2005, has directed between $10 million and $25 million to the foundation. He has lent his private plane to the Clintons and traveled to Los Angeles in 2011 to attend Bill Clinton’s star-studded 65th birthday celebratio­n.

Even if Bill Clinton steps down, there could be complicati­ons about a president’s name being affixed to an internatio­nal foundation. And Chelsea Clinton, whois its vice chairwoman, would continue her leadership role.

“It is very difficult to see howthe organizati­on called the Clinton Foundation can continue to exist during a Clinton presidency without that posing all sorts of consequenc­es,” said John Wonderlich, interim executive director of the Sunlight Foundation, a government watchdog group in Washington. “What they announced only addresses the most egregious potential conflicts.”

Considerin­g the scale and scope of the foundation, Wonderlich said it was easy to “name a hundred different types of conflicts.”

The reality is, he added, “there are no recusals when you are president.”

 ?? Associated Press fille ?? Hillary Clinton joined the Clinton Foundation when she left the State Department and stepped down in 2015 before beginning her presidenti­al campaign.
Associated Press fille Hillary Clinton joined the Clinton Foundation when she left the State Department and stepped down in 2015 before beginning her presidenti­al campaign.

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