Independent Counsel To Target Herman
Labor secretary says she's 'baffled' by decision
WASHINGTON (AllPolitics, May 11) -- After 150 days of deliberation by the Justice Department, Attorney General Janet Reno requested Monday that an independent counsel investigate allegations of influence-peddling against Secretary of Labor Alexis Herman.
In an eight-page filing for a special three-judge panel of the U.S. Court of Appeals late Monday, Reno said further investigation of the charges was needed even though "our investigation has developed no evidence clearly demonstrating Secretary Herman's involvement in these matters."
A "disappointed" and "extremely baffled" Herman questioned the decision.
"In their own filing today, the Justice Department said that neither they or the FBI concluded that I had done anything wrong, and that is because I have not," Herman told reporters shortly after Reno's decision was made public.
"These allegations have been false from the very beginning. I can only assume that the attorney general felt that she had to make this decision because of the [independent counsel] statute," Herman said.
At issue is whether Herman took a cash bribe or solicited illegal campaign donations while she was a White House aide to President Bill Clinton. Herman has flatly denied the allegations, and the question of whether to seek an independent counsel sparked division among Justice Department officials.
The attorney general took the decision down to the wire as the one-time 60-day extension Reno requested in March ended Monday. Prior to that, Justice officials struggled for an additional three months of investigation.
Reno's decision marks the seventh time the attorney general has requested an independent counsel to investigate a top Clinton Administration official.
In a White House statement, Clinton backed Herman, saying, "I am confident that in the end, investigators will also conclude that Ms. Herman did nothing wrong."
Clinton questioned the law that requires independent counsels be appointed for such investigations. "It is unfortunate that, despite no findings of wrongdoing by the secretary, the Independent Counsel Act compels the attorney general to recommend the appointment of an independent counsel in these circumstances," Clinton wrote.
Earlier in the day, White House Press Secretary Mike McCurry said the president had not talked to Reno about the case.
Accusations of influence-peddling, soliciting illegal donations
The Herman case stems from a classic public corruption allegation of money for influence.
African businessman Laurent Yene claims that he, Herman, and a friend, Vanessa Weaver, conspired in a scam where Herman would peddle her influence as a White House official in exchange for cash.
Yene alleges that he gave Herman an envelope full of cash that represented a 10 percent cut of consulting fees given to his and Weaver's consulting firm, International Investments and Business Development [IIBD], by a client seeking a federal license for a satellite-telephone system.
Though Justice prosecutors and FBI agents could not conclusively implicate Herman after five months of investigation, Reno wrote, "a great deal of Yene's story has been corroborated."
No evidence could be found that Herman "took any steps to influence any government decision on IIBD's behalf," Reno said.
But Herman's did meet with the company's clients and potential clients, including one White House lunch. "There is evidence that IIBD ... did benefit from its access to Herman, and through her, the White House, in impressing its
clients," Reno said.
In her court briefing, Reno also said the special prosecutor should also look into whether Herman participated in the solicitation of some $250,000 in illegal campaign contributions through Weaver.
Yene co-owned IIBD with Weaver, who originally bought the firm from Herman when she took the job in 1993 as director of the White House Office of Public Liaison.
Herman's supporters say Yene is seeking revenge and money because he is angry over a soured business and personal relationship with Weaver.
Division at Justice
Reno's Justice Department officials have been deeply divided over the question of an independent counsel to target Herman.
Senior Justice officials who pushed for an outside investigation said one was needed because, at this stage, the independent counsel law does not give the Justice Department authority to subpoena Herman's records or to convene a grand jury. An independent counsel would have those powers.
The attorneys in the Justice Department's Public Integrity section were among those who recommended the move.
Those who advised Reno not to go forward beyond the current preliminary investigation argued that Yene has credibility problems and they have been unable to verify many of his allegations.
Lawyers for Herman were still providing information to the Justice Department as of Friday, and Reno and her key aides met Monday to further discuss their choices.
CNN's Pierre Thomas and The Associated Press contributed to this report.
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