Palin to return donations

Juneau, Alaska - Republican vice presidential nominee Sarah Palin said late on Thursday she would donate to charity more than $1 000 in campaign contributions from two Alaska politicians who were implicated in a sprawling public corruption scandal. She's also handing back another $1 000 from the wife of one of the men.

The announcement from a spokesperson for the campaign of Republican nominee John McCain came hours after The Associated Press reported Palin had accepted the cheques during her successful 2006 run for Alaska governor in the weeks after the FBI raided the offices of the lawmakers.

The ensuing scandal became a rallying point for candidate Palin, who was swept into office after promising voters she would rid Alaska's capital of dirty politics.

"Of course, Governor Palin has made a career of holding herself to the highest standards of ethics. As soon as the governor learned of the donations today, she immediately decided to donate them to charity," said the spokesperson, Taylor Griffin.

Griffin said he did not know which charity would receive the money from Palin's old campaign fund, but expected the return to take place as early as Friday.

The two men were snagged in a federal investigation that revolves around an oil field services company once known as VECO Corp. Executives from the company remain at the centre of the trial of Alaska Senator Ted Stevens that began this week in Washington.

A political liability

Palin felt so strongly about the public corruption indictment of once-powerful Senator John Cowdery that she urged him to resign - but not strongly enough to return the $1 000 he gave to help get her elected.

Cowdery was indicted in July on two federal bribery counts; the other donor, former Rep Bruce Weyhrauch, is awaiting trial.

The contributions to the joint campaign of Palin and Lt Gov Sean Parnell did 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. But they were a political liability.

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.

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 levelled 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 August 31, 2006, FBI agents searched the offices of six state lawmakers, including Cowdery and Weyhrauch.

Conspired to bribe legislators

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 symbolise outsized corruption in Alaska and Palin was able to capitalise: As the Republican 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.

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 had kept Cowdery's donation was 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 has $49 540 in her gubernatorial campaign fund, according to the latest disclosures filed with the state.

- AP