From: CNN
In: Washington
Posted 9-18-97

Subject: Justice Department prosecutors recommend probe of former Energy Secretary

U.S. Justice Department prosecutors have recommended that U.S. Attorney General Janet Reno take the next step toward the appointment of an independent counsel to investigate former Energy Secretary Hazel O'Leary, CNN has learned.

At issue are allegations that she accepted a bribe from a controversial Democratic campaign fund-raiser.

Sources say if Reno takes the advice of the prosecutors, FBI agents would launch an intensive 90 day probe that could result in the naming of an independent counsel.

The allegations stem from an October 1995 meeting O'Leary held with a Chinese business executive. That meeting was arranged with the help of Johnny Chung. Chung said the meeting was the result of a $25,000 gift he made to O'Leary's favorite charity.

O'Leary has flatly denied the allegations.

Chung has said the donation to Africare came at the request of a lobbyist and an Energy Department official working with O'Leary. The organization promotes economic development and health care in rural Africa.

In Other News:

Thursday Sept. 18, 1997

• Tamraz: Contributions Bought White House Access
• Partisan Politics And The Christian Coalition
• N.Y. Runoff Canceled, Sharpton Files Suit
• It's 'Day One' In Tobacco War
• First Lady Asks Press To Respect Chelsea's Privacy
• Helms Backs NATO Expansion
• Albright Boosts Clinton Trade Plan
• Internet Site To Monitor Kids TV
• No Tobacco Settlement This Year
• Clinton Promises To Protect Farmers
• NATO Hints At Further Bosnia Role
• NEA Survives Attack In Senate
• Reno Defends Campaign Task Force

E-mail From Washington:
• GOP Lawmakers Ask For Explanation Of Jones' Audit
• Justice Wants O'Leary Probe
• Justice Won't Object To Immunity Request
• Gore Says He's Cooperating With Justice Department
• House Ponders Barring Bob Dornan From The Floor
• Gephardt Rips Clinton Trade Proposal