More on the Republican National Committee's disarray and likely illegal accounting practices

[ProSense]

REVERBERATIONS FROM THE RNC'S HIDDEN-DEBT PROBLEM....

<...>

We learned on Wednesday that the RNC's own treasurer believes the party deliberately failed to report more than $7 million in debt to the Federal Election Commission recently, as part of a scheme to make the RNC's finances look better than they really are. Hiding off-book debts is not only illegal, it also points to more system problems at party headquarters.

The Republican National Committee's disarray -- ABC characterized it as a "civil war" -- comes at a bad time for the party, and Marc Ambinder reports that Republican strategists fear the "chaos" at the RNC could lead to electoral consequences.

During midterm elections, the national committee plays two essential roles. First, it serves as a bank account that can be drawn upon to shore up House races or put others into play. Second, it coordinates the party's field operations and funds joint "Victory" committees with state parties. The RNC, at the moment, is barely fulfilling the second function and has less than $10 million on hand, so it cannot help much with House races. <...>

The degraded political environment, the sluggish or non-existent economic recovery, and the enthusiasm of Republican base voters are intangibles that, properly harnessed, could easily put Republicans over the top. But without a solid field program to bring voters to the polls, and with ranks of well-funded Democratic incumbents, that edge could be lost on election day.

The party's well-regarded political director, Gentry Collins, has seen his budget slashed considerably, and state parties have complained about the condition of the party's Voter Vault datamart. Many state parties are outsourcing their targeting operations, which would have been unthinkable during the flush years of the Bush-Cheney administrations.

The latest scandal, involving $7 million that the RNC's own treasurer categorized as unreported debt, will undermine any opportunity the party has to regain its financial footing before the election.

Remember, as we talked about the other day, what makes this story serious is the fact that it has multiple angles, all of them bad news for the RNC. We have (1) the in-fighting among RNC officials, with the chairman going up against his own treasurer; (2) potentially illegal accounting tricks; (3) weak RNC fundraising in advance of a critical election season that necessitated the illegal accounting tricks; (4) another distracting scandal for Steele to deal with, just a few weeks after the last one; and (5) the fact that the controversy itself steps all over the Republican message of fiscal responsibility.

Oh, and for good measure, also note that if the FEC penalizes the party for its accounting tricks -- which seems likely -- the RNC would likely have to pay fines before the election. That's money the party would much prefer to spend on competitive races.

<...>

[vaberella]

1. Fabulous...what a great team of Republicans.

How could anyone expect proper accounting from a set of criminals? Did everyone forget Enron? These people are dirty dealers.

[Oceansaway]

2. K&R...n/t

[ProSense]

3. No other comments, and does someone have a soft spot for the RNC? n/t

[Jennicut]

4. The Rethugs cannot even run the RNC properly...why does anyone want them back in charge of Congress?

[Clio the Leo]

5. It's AMAZING how they may be on the verge of screwing the pooch with this...

.... we tried to tell them, not just ANY black dude will do. You cant just go get you "another one" and have the same result.

"Mr. Steele, for the LAST time, the Republican party does NOT qualify for a bailout." ~ POTUS
http://www.youtube.com/watch?v=aJ9efgBt2Y8

[Spazito]

6. I love to watch right wing organizations implode....

and the timing on this is exquisite. No money for the November elections and infighting about it. Love it!

Recommended.

[ProSense]

7. Rove's "grassroots" group raised 97 percent of its money from four billionaires

Rove’s RNC ‘grassroots’ rival, American Crossroads, raised 97 percent of its money from four billionaires.

Compensating for damage the Republican National Committee’s unsteadiness may cause Republican candidates this fall, several high-profile GOP operatives — including Karl Rove and two former RNC chairmen — recently founded American Crossroads as a “grassroots,” “shadow RNC.” Salon’s Justin Elliott now reports that the group raised 97 percent of its funding from just four billionaires:

The IRS filing of American Crossroads, an outside 527 group that was conceived by Rove and ex-RNC chair Ed Gillespie, gives a good taste of who is funding the GOP effort to make big gains in the House and Senate come the fall. … Chaired by another ex-RNC chair, Mike Duncan, American Crossroads has pledged to raise $50 million to beat Democrats in the midterms and has been seen by some as a competitor to the Republican National Committee itself.

And despite the group’s description of itself as “grassroots,” Salon’s review of its IRS filings show that four billionaires have contributed 97 percent of the $4.7 million it has raised to date. There are no limits on how much corporations, unions, and individuals can donate to 527 groups.

Elliott notes that two of the billionaire donors “made their fortune in the oil and gas industry.” One, Harold Simmons, “was the sole funder” of “a group that ran ads attempting to tie Obama to Bill Ayers in 2008.” Rove acknowledged earlier this month that his group raises money successfully largely because the Supreme Court’s decision in Citizens United opened the door to unlimited corporate donations in politics.