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Obama backs off 'graft donor'
23/01/2008 21:18 - (SA)
Washington - United States presidential candidate Barack Obama sought to distance himself on Wednesday from a property developer and fast-food magnate facing federal corruption charges.
He said he had no indication of any problems when he accepted thousands of dollars in campaign contributions from Antoin "Tony" Rezko.
Presidential rival Hillary Rodham Clinton raised Obama's relationship with Rezko in a Democratic debate on Monday night.
Obama is seeking to become the first black American president; Clinton the first woman chief US executive.
Obama said in an interview with CBS television's Early Show: "My relationship is he was somebody whom I knew and had been a supporter for many years, he was somebody who had supported a wide range of candidates all throughout Illinois.
Land purchase 'a mistake'
"Nobody had an inkling that he was involved in any problems. When those problems were discovered, we returned money from him that had been contributed."
Obama, a senator from the Midwest state of Illinois, also said it was a mistake for him to have bought a strip of land from Rezko's wife.
The land adjoins the Obamas' Chicago home. Rezko was widely reported to be under grand jury investigation at the time.
"In terms of appearances, and I've already said this, that I should not have entered into any kind of agreement with him," Obama told ABC television's Good Morning America.
Obama has also given to charity about $37 000 (about R284 000) in contributions to his Senate campaign and political action committee that were linked to Rezko.
Rezko also raised tens of thousands of dollars for Obama's state legislative and Senate races.
During the weekend, Obama gave to charity more than $40,000 (about R284 000) in past political contributions linked to Rezko.
The contributions were from seven individuals who contributed to Obama's House and Senate campaigns. None of the money was for his present presidential bid.
Rezko faces a February 25 trial, almost three weeks after the February 5 primary elections that could go a long way in settling the Democratic nomination.
Claims he swindled $10m
He is charged with fraud, attempted extortion and money laundering for allegedly plotting to get campaign money and pay-offs from firms seeking to do business before two state boards.
Once that trial is behind him, the 53-year-old Rezko faces a separate federal charge of swindling the General Electric Capital Corporation out of $10m (about R70m) in connection with the sale of pizza restaurants.
Obama's name has not come up in connection with any of the corruption charges swirling around Rezko.
In fact, prosecutors indicate that the source of Rezko's clout was somewhere within Democratic Governor Rod Blagojevich's administration.
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