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Text File | 1992-10-19 | 6.0 KB | 125 lines

                                                                                NATION, Page 32

CONGRESS

Checkmate for the Speaker?


Rubbergate claims its first victims and threatens scores more in
November. Even Tom Foley may have to pay.

By DAVID ELLIS -- With reporting by Nancy Traver/Washington


    When Joseph Early faced his colleagues in the House of
Representatives last week, he was feeling anything but contrite.
Although the Massachusetts Democrat had been named as one of the
biggest abusers of the now defunct House bank, having issued 140
bad checks, he wasn't interested in apologizing. Early chose to
blame the boss instead. Tom Foley's handling of the issue, he
claimed, was nothing short of a "disgrace." Growled Early: "Mr.
Speaker, face the issue!"

    No other lawmakers were willing to echo Early's
intemperate remarks -- at least not publicly. But there is
little doubt that many Democratic Congressmen blame Foley for
the continuing political mess that may have cost several
incumbents their jobs in primaries last week. One of the
defeated lawmakers, five-term Chicago Congressman Charles Hayes,
wrote 716 bad checks. Many more may be sent packing in November:
a Washington Post/ABC News poll published last week indicated
that 79% of Americans are unlikely to vote for Representatives
who repeatedly wrote bad checks.

    Many members felt they were unfairly blamed for the sins
of the worst offenders. Of the 355 House members who were found
to have written bad checks at one time or another, probably a
majority did so inadvertently. This group was particularly
bitter over the bank's sloppy management and the Speaker's
awkward handling of the affair.

    The Justice Department announced an independent review of
check-kiting practices on the Hill. Adding to the embarrassment,
at least three Democrats -- Charles Wilson of Texas, former
Congressmen Jim Bates of California and Doug Walgren of
Pennsylvania -- used House bank checks to lend money to their
election campaigns.

    For months, Republicans, led by minority whip Newt
Gingrich, gleefully bashed Democrats over the issue. But
"Rubbergate" has bounced back at the G.O.P., as Gingrich and
three members of the Bush Administration, including Defense
Secretary Dick Cheney, have admitted that they incurred
overdrafts while serving in Congress. Almost overnight, the
White House had to soften its stance on the scandal --
especially since George Bush himself could not say for sure
whether he had abused the privilege when he served in the House
from 1967 through 1970.

    Many of Foley's colleagues are jabbing their fingers in
the Speaker's direction, insisting that he had ample
opportunity to reform House operations. Foley was told by
investigators from the General Accounting Office in January 1990
that the banking operation needed cleaning up. The Speaker might
have nipped the problem in the bud by firing sergeant at arms
Jack Russ, who ran the bank, but critics say the wily
administrator used his inside knowledge of Hill affairs to
protect his position. Foley let Russ off with a warning, and
asked an outside group of bankers to look at the system. Even
though their April 1990 report clearly stated that some members
were making "excessive use" of the overdraft provision, the
Speaker let matters drift until the current scandal broke, which
led to the bank's closing last December and Russ's resignation
earlier this month.

    Adding to the disarray last week were new allegations of
wrongdoing at the House post office. After law-enforcement
agents discovered that some members also improperly cashed
personal and campaign checks at the post office, House
postmaster Robert Rota quit his position. A federal grand jury
is examining accusations that some members in effect laundered
campaign money at the post office. According to law-enforcement
officials, unidentified lawmakers whom they did not identify
wrote checks for thousands of dollars' worth of stamps at the
mail station, then redeemed them for cash.

    The post office was already reeling from a previous
scandal. At least one employee is suspected of dealing cocaine
from the facility, and three other workers have admitted
stealing more than $33,000 from its coffers. The Speaker was
further embarrassed by reports that his office had known of the
earlier post office irregularities but did nothing to remedy
them. Heather Foley, the Speaker's wife and unpaid chief of
staff, discussed the post office situation in a meeting with
Rota before the matter became public. According to the
Washington Times, she ordered Rota to keep quiet about the
problems at the post office. Foley condemned reports implicating
his wife in a cover-up, calling them "categorically untrue."

    Questions about Foley's handling of these scandals have
compounded the disappointment of many House Democrats over his
conciliatory legislative style. Time and again the Speaker has
preferred to negotiate with the Administration on certain key
issues. Democrats fear that Foley will once again be
outmaneuvered in the battle over the tax bill that Bush vetoed
last week. "Since he has assumed the leadership, Foley has been
unwilling to put forward a coherent economic alternative to
George Bush," says Michael Waldman of Public Citizen's Congress
Watch.

    To solve the management problem, the House may soon pass
a measure creating the position of independent administrator to
run its varied operations and conduct audits. And in an effort
to curtail the privileges that have drawn increasing public ire,
Foley last week ended free medical prescriptions for members and
raised fees at the House gym. But the reform moves could prove
too little and too late to calm Foley's critics. If dozens of
incumbents either choose not to run or lose at the polls in
November, those who replace them will not have any ties to
Foley. The Democrats among them could demand that he step aside
for a more aggressive leader.