03/10/02

I

t is not clear whether the $50,000 "dona tion" that rogue stockbroker Frank Grutta dauria made to the Hamilton County Republican Party last December was stolen money - although dispensing stolen largess has emerged as a favorite pastime of the former Lehman Brothers Inc. broker.

What is clear about the substantial donation is that it was given after Gruttadauria met socially with state Treasurer Joe Deters, and after Gruttadauria's firm landed a lucrative state contract from the treasurer's office. If that burst of generosity bothers you, it should. Gruttadauria had virtually no track record for political gift-giving in Ohio.

Deters says there was no quid quo pro. Many financial institutions that give to his party and to his own campaign also receive state work. That is neither illegal nor unexpected. Deters also insists that he did not solicit and was unaware of Gruttadauria's donation until after Gruttadauria disappeared in January. Further, the money was given to the Hamilton County Republican Party operating fund, not the candidate. Therefore, Deters contends, he did not benefit directly.

That explanation is technically accurate: No laws appear to have been broken. Still, what took place is troubling enough that Deters and his political friends owe the public a better explanation than they have offered to date.

Gruttadauria apparently was asked to make the contribution to the secret Hamilton County Republican account by Eric Sagun, who raises money for both the county party and for Deters' campaign. Because Sagun was working for the party when he solicited the $50,000 - and not for Deters - the treasurer says he has no right to demand more details from Sagun.

Deters is splitting hairs. We believe he has an absolute obligation to demand that Sagun be more forthcoming about how a Cleveland stockbroker who allegedly fleeced investors out of hundreds of millions of dollars came to give such a large contribution to a political party based in Cincinnati. If Sagun won't provide those details, Deters should dismiss him as his campaign's fund-raiser.

This seedy affair underscores the weakness of Ohio's campaign finance laws. Those laws set no limits on the amount of unreportable money that can be dumped anonymously into the coffers of political parties for operating expenses. Even dirty political money can be laundered through the parties for various political purposes.

Gruttadauria was able to dump $50,000 of possibly stolen money into a county party's account without the donation being detected. Reasonable people are being asked now to take Deters' word that Gruttadauria was not trying to buy access or return a favor. Indeed, the only reason Gruttadauria's donation has come to light is because The Plain Dealer learned of it after Gruttadauria went on the lam in January.

The law must be changed. Those who give to political parties should not be able to hide in the shadows. It perverts the political process by adding a stealth element to the "pay-to-play" culture of state politics.

State Sen. Dan Brady, a Democrat from Cleveland, introduced a bill last week that would force political parties to reveal their donors. Brady's bill should become law, but probably won't because Senate President Richard Finan, a Cincinnati-area Republican, is happy with the status quo.

Finan, who is in his final year in office because of term limits, could not be more wrong. Such an arrogant dismissal of the legitimate concerns of those who recognize the subterfuge that occurs when enormous sums of money float undetected through the system ill-serves the public.

House Speaker Larry Householder had indicated that he is willing to entertain a discussion about changing the law. Gov. Bob Taft should demand that the legislature act.