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RNC officials reach accord, though mistrust continues

By Reid Wilson - 05/06/09 03:10 PM ET
An oversight at the 2008 Republican National Convention is sparking the latest spat between Republican National Committee (RNC) Chairman Michael Steele and several committee members who want more transparency in the RNC’s spending.

Although a deal has been reached over spending decisions, the incident highlights the mistrust with which Steele allies and several longtime committee members view each other — a mistrust that shows no sign of abating more than three months after Steele won election as chairman.

The latest conflict started with a resolution offered by committee members led by RNC Treasurer Randy Pullen and former RNC general counsel David Norcross that would have imposed restrictions on the amount of money Steele would be allowed to spend without oversight.

That resolution would have required Pullen, as treasurer, to sign off on contracts of more than $100,000; prohibited Steele from entering into agreements that extended beyond his term, which expires in January 2011, without the approval of the GOP’s executive committee; and required the committee to hire a chief financial officer to assist with campaign finance filing requirements.

Pullen offered his measure, sources said, after it was discovered an operating resolution that had been in GOP rules for years was not included in party rules passed at the national convention in 2008. That operating resolution, which comprised most of Pullen’s measure, raised alarm bells when its omission was discovered.

The call for Pullen’s resolution came to a head, however, when Steele ended the 33-year tenure of Jay Banning, who essentially had served as the RNC’s chief financial officer. Banning remains under contract as a consultant with the RNC, but he is no longer an employee.

Pullen’s resolution met “pretty fierce resistance” from Steele backers, Norcross told The Hill. But the internal division became public when e-mails from Steele and Wisconsin GOP Chairman Reince Priebus, Steele’s closest ally on the committee, became public. Those e-mails, which went to Norcross, Pullen and several other longtime committee members, accused the faction of trying to handcuff the new chairman.

Under the deal between Steele allies and Pullen’s faction, Pullen, who as treasurer has to sign Federal Election Commission documents, will have access to Banning and to Thomas Josefiak, the committee’s former chief counsel, in order to assist him with the filings.

The agreement also calls for Steele to abide by the 2004 rule until this summer’s semiannual meeting, according to sources on both sides of the discussion. The deal was reached at a meeting late last week organized with the help of new Resolutions Committee Chairman Henry Barbour.

Committee members insist the dust-up and the associated agreement will not diminish Steele’s power, and that Pullen’s resolution was not designed to embarrass the new chairman.

“We would have been pushing [the financial governance resolution] if Steele was there [or] if [former Chairman Robert “Mike”] Duncan was there,” said Ron Kaufman, the former head of the RNC budget committee and one of the resolution’s backers.

“This has never been about Michael Steele. It’s about getting the treasurer the tools to do his job,” Norcross said. He added that if Pullen is denied easy access to Banning and Josefiak, it will become public: “If Pullen doesn’t have access, well, you know, bloody hell is going to get raised.”

But the possibility for future embarrassment still exists.

The two sides are continuing to negotiate over the matter of to whom an RNC CFO should report, as well as a Pullen proposal to introduce a competitive bidding system in advance of the summer meeting. Though the Pullen faction thinks Steele’s team is inclined to look on the two additional proposals favorably, Steele allies hinted they were not so disposed.

The agreement “certainly promotes a relationship of cooperation with the RNC members,” said Jim Greer, the chairman of the Florida GOP and a Steele backer. But, he added: “Any attempt to dilute the chairman’s authority or his ability to manage the organization should be resisted and opposed vigorously.”

“You cannot legislate this into perfection,” said one Steele ally. Of the CFO post, the ally said a proposal to make that person answerable to the RNC executive board rather than to the chairman directly would lead to greater authority for unelected staffers at the expense of the party’s elected leaders.

“There is endless opportunity for mischief if you have a person in [the CFO] position who doesn’t have a supervisor,” the ally said. “It creates a power vacuum that is going to be filled by the staff.”

But those fights will come later, Norcross said.

“We’re all a lot calmer and things are going to be just fine,” he said. “I’m not looking for more fights. I just want to declare this one over.”

While the sides may not be divided by vast differences, insiders pointed to a different problem, one that is much more difficult to overcome.

“Everyone’s on the same wavelength, in my opinion, to do these kinds of things,” Kaufman said. “The only problem is there’s no trust on both sides.”

Source:
http://thehill.com/homenews/news/19532-rnc-officials-reach-accord-though-mistrust-continues
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