Tuesday, October 7, 2008

Newspaper finds "clandestine sources of funding"

On May 29, the Aberdeen American News reported "new developments" in funding for two groups, including South Dakotans for Open and Clean Goverment.

South Dakotans for Open and Clean Government has received an additional $175,000 in the past five months from the South Dakota Conservative Action Council in support of Initiated Measure 10, which purports to be an anti-corruption initiative that attempts to further regulate political funding, campaign activities and private employment of legislators.

The Conservative Action Council won't reveal its sources of money. Only $829 was received from other contributors to the Open and Clean committee so far this year.
...
The new developments came to light through campaign-finance disclosure reports which the ballot committees were required by South Dakota law to publicly file this month.

In both instances, the ballot-measure committees have been using non-profit corporations as shields to hide their sources of funding. Corporations are allowed to make unlimited political contributions to ballot measure campaigns in South Dakota. Non-profit corporations must make their federal tax returns open to public inspection but they aren't required to reveal their donors.

The Conservative Action Council was formed last year in Pierre as a non-profit corporation by Louisiana native Lee Breard and two other directors, Steve Sibson of Mitchell and Lora Hubbel of Sioux Falls, just weeks before the Open and Clean Government ballot committee was organized. Breard, Sibson and Hubbel have refused to disclose the council's sources of funding being used to pay for the ballot committee work.

The council has now given $220,200 of secret funding during the past seven months to the ballot committee, which is attempting to further restrict campaign donations and regulate employment of current and former state legislators.

Initiated Measure 10 is similar to ballot proposals being attempted in Montana and Colorado and to a Nevada measure which a judge there threw off the ballot in March.

"Conservative Action Council pours $175,000 more into ballot campaign," Aberdeen American News (SD) - May 29, 2008

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