Time: Wed Jul 16 13:43:17 1997
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Date: Wed, 16 Jul 1997 12:46:26 -0700
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: Treasury Memos Probed (fwd)

>Report: Treasury Memos Probed
>By KAREN GULLO Associated Press Writer
>WASHINGTON (AP)--Hours before congressional investigators 
>showed up, Treasury officials hastily composed 
>memos justifying $11 million in grants to banks 
>owned by friends of the Clintons, congressional 
>investigators said.
>The memos were undated, written in the present 
>tense, and inserted into the files, apparently 
>to make investigators think they had been written 
>when the grants were made instead of after the 
>fact, according to Republicans on the House Banking 
>Committee investigating the matter.
>The Treasury Department said it considers the matter 
>serious and is investigating.
>A letter sent Tuesday to Treasury Secretary Robert 
>Rubin from the committee said Treasury officials 
>Kirsten Moy and Steve Rohde ``clearly calculated 
>to mislead the subcommittee.''
>``There appears to be no plausible explanation 
>for the decision to leave the documents undated 
>other than to foster a false impression that they 
>had been prepared contemporaneous with the grant 
>decisions,'' said the letter signed by six Republicans.
>Rubin said the Treasury Department is looking into 
>the matter.
>``We view these concerns with the utmost seriousness,
>'' he said in a letter sent Tuesday to a committee 
>News of the undated memos came as funding for the 
>program is up for consideration in Congress. Republicans 
>want to cut the program to $50 million from $125 
>The banking committee said a report from the Treasury's 
>inspector-general showed that Ms. Moy ordered Rohde 
>to compose the evaluation memos after learning 
>that aides to Rep. Spencer Bachus, R-Ala., chairman 
>of a House Banking subcommittee, were planning 
>to visit.
>Against the advice of a department lawyer, Moy 
>and Rohde inserted the memos into the files without 
>dating them, the letter said.
>The lack of dates on the memos aroused suspicion,
>and Bachus ordered an inquiry.
>The inspector general's report found that of the 
>32 entities awarded money from Treasury's Community 
>Development Financial Institution Fund in July 
>1996, the four with connections to the Clintons 
>did not have evaluation memos, a routine part of 
>the application process, investigators said.
>Rohde said the memos are not misleading because 
>they reflect the actual evaluation process and 
>were based on notes he made when the grants were 
>awarded to the banks.
>The program channeled nearly one-third of its first 
>$37 million in grants for poor communities to four 
>related banks with ties to the Clintons.
>The assistance went to community development lenders 
>associated with South Shore Bank, also known as 
>Shorebank, a Chicago-based institution. Southern 
>Development Inc., an Arkansas company that Hillary 
>Rodham Clinton set up with help from Shorebank,
>received $2 million in assistance.
>Shorebank official Robert Weissbourd said the bank 
>and its affiliates deserved the federal assistance. 
>``No one has said that those institutions on the 
>merits don't deserve the awards,'' he said.
>AP-NY-07-16-97 1101EDT
>Copyright 1997 Associated Press. All rights reserved. 

Paul Andrew Mitchell                 : Counselor at Law, federal witness
B.A., Political Science, UCLA;  M.S., Public Administration, U.C. Irvine

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