Apr.08, 2010

Michigan Democrats and a liberal activist organization called Wednesday for an investigation of what they said was potentially illegal campaign finance money laundering by state and national Republican Party committees.

The allegations arose after a Washington, D.C.-based online newsletter reported that Michigan GOP Chairman Ron Weiser and Republican National Committee Chairman Michael Steele arranged to have Michigan donors contribute to the RNC in December, with the RNC later making contributions to the Michigan party.

An unnamed source told the Daily Caller that the donations helped Steele appear effective and could allow the Michiganders, who each gave $34,000 to the RNC, to exceed a $10,000 cap on donations to the state party for use in congressional campaigns.

Representatives of the RNC and Michigan GOP declined to be interviewed Wednesday, but issued statements denouncing the allegations as baseless.

"Enemies of Chairman Steele can make up all sorts of stories, and there are plenty in the press who have an interest in peddling sensations," said Michigan party spokeswoman Jennifer Hoff. "Michigan donors have a long history of contributing to the RNC, and the RNC has a long history of supporting Michigan GOP efforts."

Steele has been under fire in recent weeks, most notably over revelations that the RNC had reimbursed a staffer for expenses incurred at a Los Angeles adult nightclub.

Twenty-three Michiganders made donations of $34,000 to the RNC in December. The RNC gave the Michigan GOP $500,000 in January and February, more than to any other state.

Perrigo Chairman Michael Jandernoa of Grand Rapids, who with his wife contributed $68,000 to the RNC in December, said there were no conditions placed on the donation. Jandernoa said he vets all of his political financial transactions with a consultant to ensure that they conform to campaign finance regulations.

Michigan Democratic Chairman Mark Brewer called the transfer from the RNC to Michigan GOP a "secret scheme (that) may be an illegal attempt to avoid federal contribution limits."

David Holtz, head of the activist group Progress Michigan, also put out a news release calling on the Michigan State Police to launch an investigation.