Repubs duke it out in Iowa 1st district race

Ed Tibbetts in the QC Times:

Nine days ago, Republican congressional candidate Brian Kennedy filed a complaint with the federal government, accusing an opponent of illegally using corporate money to boost his campaign.

Nine years ago, the Republican Party of Iowa that Kennedy chaired accepted “corporately tainted” money from the Republican Party of Florida, according to state documents. As a result, the Iowa Republicans agreed to pay a $1,000 fine and returned the contribution, the documents said.

Kennedy, who is running for the party’s nomination in Iowa’s 1st District, called the incident a mistake on the part of the Florida party. But a consultant for rival Mike Whalen said it’s proof of Kennedy’s hypocrisy.
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On Nov. 30, Kennedy filed a complaint with the Federal Election Commission, charging that Whalen improperly promoted his campaign via advertising for the Iowa Machine Shed, a restaurant that Whalen owns.

Whalen denied the accusations.

The incident involving the Iowa GOP occurred in December 1996 when the party and its counterpart in Florida exchanged thousands of dollars. The Iowa GOP sent $40,000 to the Floridians from its federal account, while the Republicans there transferred $50,000 to Des Moines.

The state ethics board staff objected when it found Florida accepted corporate as well as individual donations and didn’t segregate the two types of contributions. Iowa doesn’t allow corporate contributions and the board considered the money “corporately tainted,” according to a settlement agreement the board and the Iowa GOP reached in 1997.

The board noted the Florida committee obtained an opinion advising that the transfers were legal, but it added the people involved in the transaction knew or should have known that Iowa law prohibits receiving corporate donations. “The board finds the size of the initial contribution and the presumed knowledge of the participants such as to not permit its excuse as inadvertent or insignificant,” the settlement agreement said.

The agreement was signed by Steve Grubbs, who succeeded Kennedy as Iowa GOP chairman.

Grubbs now heads Victory Enterprises, Inc., which is providing consulting services to Whalen’s campaign.