News24

Millionaires behind the US elections

2012-02-01 15:44

Washington - The significant "super" political action committees in this year's presidential campaign revealed the names of their wealthy donors, a detailed accounting that underscored how millionaires and billionaires are influencing the presidential election behind the scenes.

The group supporting Mitt Romney, who swept Florida's primary on Tuesday, identified bankers, investors and prominent businessmen who together contributed more than $30m last year.

The group's three most generous donors gave $1m each, or 400 times the amount they could legally give directly to Romney. All were hedge fund managers.

The super PACs are the products of a 2010 Supreme Court ruling that removed restrictions on corporate and union spending in federal elections.

The super PACs can't directly co-ordinate with the candidates they support, but many are staffed with former campaign workers who have an intimate knowledge of a favoured candidate's strategy.

The pro-Romney group Restore Our Future spent much of the money it raised on ads supporting the former Massachusetts governor or fiercely attacking his rivals.

Top contributions

The generosity among Romney's wealthiest supporters is double-edged, since he can expect renewed criticisms from Newt Gingrich and others about his connections to financial elites on Wall Street, Park Avenue, Fifth Avenue and elsewhere.

The top $1m contributions came from Robert Mercer, co-executive of Renaissance Technologies, one of the world's largest hedge funds; Julian H Robertson Jnr, the retired head of Tiger Management Corporation, another top hedge fund; and Paul Singer, head of the New York-based Elliot Management Corporation Singer is a major Republican party campaign fundraiser, and his firm has specialised in the controversial practice of buying up sovereign debt of Third World and economically distressed nations.

A Restore Our Future official declined to discuss the new financial reports, filed with the federal government late on Tuesday.

To be sure, the Romney-leaning super PAC isn't alone in its high-dollar contributions to support candidates. Casino mogul Sheldon Adelson and his wife collectively gave $10m this month to the pro-Gingrich Winning Our Future super PAC, making the couple by far the key backers to a group that had only raised $2m through the end of December.

Adelson's donation seemed to be reaping rewards already. Gingrich's speech in Florida late on Tuesday included a renewed promise by the candidate that, if elected, he would relocate the US Embassy in Israel to Jerusalem - a move that Adelson has long supported.

American Crossroads, the Republican group backed by former George W Bush adviser Karl Rove, said it raised $51m along with its non-profit arm last year. Most of its $11m in contributions over the past three months came from roughly a dozen wealthy donors, including Harold Simmons, a Dallas businessman with ties to former Republican candidate Texas Governor Rick Perry.

Effective ads


At the same time, Restore Our Future has been among the most prominent groups this election cycle. It spent more than $14m in key primary states on ads that largely supported Romney and hammered Gingrich.

The ads were deemed so effective against Gingrich that they contributed to his downfall in the Iowa caucuses and Florida primary.

The group's donors, however, aren't immediately apparent on their filings to the Federal Election Commission. Once such million-dollar gift came in four instalments from Melaleuca Incorporated, a vitamin and health products company headed by Frank VanderSloot, a Mormon businessman who has donated to both Republican and Democratic politicians.

VanderSloot's website features a photo of him posing with Gingrich and his wife, Callista. Romney is vying to become the first Mormon to be elected president.

At least $750 000 came from Bill Koch, a sibling of the two prominent Koch brothers who have undergirded the finances for many Republican, conservative and pro-business causes in recent years.

Koch gave a $250 000 donation, and Oxbow Carbon LLC, the global energy firm he heads, gave $750 000 more.

The super PACs' war chests underscore the extraordinary impact the groups will have on this year's race. In Republican primaries so far, groups working for or against presidential candidates have spent roughly $25m on TV ads - about half the nearly $53m spent on advertising so far to influence voters in the early weeks of the race.

Comments
  • Sam - 2012-02-01 16:00

    Are they doing it out of the goodness of their hearts or there is a catch...? Asazi...

  • looneylani - 2012-02-01 16:04

    this is not new

  • Paul - 2012-02-01 17:51

    The stereotypes cannot pay their debts but can contribute to keeping the 'galaxy' pure white.

  • Anja - 2012-02-02 00:32

    "i'm not concerned about the very poor; however i am intensely concerned about the very rich."

  • Anja - 2012-02-02 00:47

    Romney earned over 40 million dollars in 2010, yet paid NO income taxes. He did pay 13.5% capital-gains tax on the earnings. Much of the 40 million dollars in earnings was from investments in child-labor fueled economies.

  • pages:
  • 1