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Palin's Political Problems

Palin's Political Problems

Wed, 09/03/2008 - 11:06am by stephley
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When she was introduced as McCain's running mate last week, Palin portrayed herself as a political maverick in McCain's mold: "I've stood up to the old politics as usual, to the special interests, to the lobbyists, the big oil companies and the 'good old boy' network,"' she said.

But Alaska's first female governor has at times benefited from Alaska's entrenched political system.

As Palin campaigned unsuccessfully in 2002 to become lieutenant governor, she received contributions from executives at VECO Corp., a powerful Alaska oil field services company. Company founder Bill Allen has admitted the company steers its donations through a "special bonus program" in which executives received money and the company instructed them to donate it to favored politicians.

Allen pleaded guilty to bribery and corruption charges. He admitted the program violated federal tax laws and said it was used to keep his political allies flush with cash.

"If they're working with the oil industry, I'd like to help with their campaigns," Allen testified last year in the corruption trial of a former state lawmaker.

Since Palin's nomination last week, these issues also are raising eyebrows:

* In her earlier career as mayor of Wasilla, Alaska, Palin hired a lobbyist to help the tiny town secure at least 14 earmarks, worth $27 million between 2000-2003. McCain has touted Palin as a force in his long battle against earmarks.

*The state legislature is investigating whether she had Alaska's public safety commissioner fired after he refused to dismiss a state trooper who had divorced Palin's sister. Lawyer Thomas Van Flein said he is representing Palin both personally and in her official capacity as governor. He can bill the state up to $95,000.

*Palin opposed the U.S. government's listing of a variety of animals as endangered, including the polar bear and the beluga whale, both of which inhabit areas also rich in oil and natural gas.

Palin's management style has come under scrutiny. When taking over as mayor of Wasilla, she asked top officials to submit resignation letters, resulting in several departures, including that of the police chief. The chief claimed it was because he supported her opponent in the mayor's race.

Under her leadership this year, Alaska asked for almost $300 per person in requests for pet projects from Stevens, one of McCain's top adversaries. That's more than any other state received, per person, from Congress.

Palin has had her share of run-ins with Stevens, including a dustup earlier this year in which Stevens accused Palin of not being enthusiastic enough about his efforts to bring federal earmark money to Alaska. She has also called on Stevens' son, Ben, to resign as national committeeman for the state party.

She was among the first Alaska Republicans to urge Stevens to answer questions about the FBI investigation.

In the fundraising corruption probe, VECO founder Allen is cooperating with an FBI investigation that has already sent several state political figures to prison. He is expected to be the Justice Department's star witness at Stevens' trial later this month when he testifies about home renovations and other gifts he provided the longtime senator - gifts Stevens is charged with concealing on Senate documents.

Palin received $500, the maximum amount allowed by law, from Allen and VECO vice president Rick Smith. Several other VECO managers, including Pete Leathard, who came up with the idea for the special bonus program, also donated the maximum. Allen's son, a VECO employee, also donated $500. All the checks were donated the same day, except for Leathard's, which was dated two days after the rest.

John Cramer, one of Palin's treasurers for her 2002 campaign, said he doesn't remember any indications that the money came from a special company program.

The donations aren't evidence of corruption, and Palin is not among the lawmakers under investigation in the VECO case. But they undermine arguments that Palin has broken from Alaska's Republican machine, including Stevens.

"If you can take on Ted Stevens and that crowd in Alaska, you can handle the Russians," Sen. Lindsey Graham, R-S.C, told ABC News this week.

But Palin didn't reach the governor's office picking fights with the Senate's longest-serving Republican. She was a director for a nonprofit group Stevens set up to increase the number of Republican women in government. Stevens also campaigned for Palin in 2006 and appeared in a political advertisement for her.

Palin has had her share of run-ins with Stevens, including a dustup earlier this year in which Stevens accused Palin of not being enthusiastic enough about his efforts to bring federal earmark money to Alaska. She has also called on Stevens' son, Ben, to resign as national committeeman for the state party.

She was among the first Alaska Republicans to urge Stevens to answer questions about the FBI investigation. But she did not urge him to resign after his indictment, as she did after a state lawmaker was indicted. She said Stevens "has dedicated his life to the betterment of the state."


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