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Financial support for Obama is illegal

Written by HON. NIMI WALSON-JACK

Thursday, 14 August 2008

In the Sunday Newspaper, August 10, 2008 edition of THISDAY, page 17, there is a full paged advertisement by an Organization that goes by the name, Africans for Obama ’08 for a Dinner/Concert. The advert is signed, among others, by Mrs. Ndi Okereke-Onyuike, PhD, OON, as Chairman, Africans for Obama. The Dinner has since been held but the effects and implications are just about to unfold especially since the objectives of the Group and the Dinner/Concert is to raise funds for the Barack Obama Campaign in the United States of America.

The first issue that comes to mind is the legality of Mrs. Okereke-Onyuike, and other Nigerians raising money for the Obama Presidential Campaign. This issue can only be resolved by reference to the election laws of the United States of
America. Information available on the FackCheck organization website confirms that United States political candidates may legally take donations from American citizens or from permanent residents of the United States wherever they happen to live, even if the money is raised overseas. But United States political candidates cannot legally accept donations from individuals who are neither U.S. citizens nor permanent U.S. residents.

This means that it is only American citizens or permanent U.S. residents who are in Nigeria temporarily that could contribute money to the campaign funds of the Obama campaign. Nigerians and indeed, other citizens of the world who want to see an Obama presidency cannot legally contribute to the Obama campaign fund.

To the best of our knowledge, neither Mrs. Ndi Okereke-Onyuike nor any of the other organizers are citizens of the United States or even permanent U.S. residents. Even if they are, then they have a duty to ensure that every person who would donate to the campaign fund is either an American or a permanent resident of the United States. Since the advertisement invited every individual
or corporation who could pay between N275,000 and N2.5m to participate, there is the high risk and possibility that many of those whose hearts are with the Obama campaign but are not Americans paid for and attended the dinner concert. After paying for the meal they consumed, the balance of their money cannot and would not be sent to the Obama Campaign.

Even if the money is ever remitted to the Obama campaign organization it would be rejected because the organization, the candidate and any campaign official who accepts the money would be committing an offence in America.

In a write-up on the FactCheck Organization website, Messrs Emi Kolawole and Brooks Jackson recalled that a similar issue arose as a result of a trip Sen. John McCain took to the United Kingdom. It was reported that McCain was scheduled to attend a fundraiser in London, which led some readers to believe non-U.S. citizens Page 2 were donating to his campaign. However, donations made during the $1,000-a- plate luncheon are subject to the same FEC rules as fundraisers in the United States.

Many readers also will recall the "Chinese money" scandal that erupted during Bill Clinton's 1996 reelection campaign. The Democratic National Committee returned $3 million in illegal or otherwise questionable contributions after much of it was
discovered to be from foreign nationals. The affair prompted televised Senate hearings. A special Department of Justice Campaign Finance Task Force eventually resulted in a variety of criminal charges against 27 persons, most of whom were found guilty, the last one in 2003. The Federal Election Commission also fined the DNC $115,000, part of a total of $719,500 in civil penalties, mostly
assessed to donors.

According to the United States Federal Election Commission, political candidates are not allowed to receive campaign donations from foreign nationals. Foreign nationals include: foreign governments, political parties, corporations, associations, partnerships, persons with foreign citizenship, and non-permanent resident immigrants. Permanent residents, or "green card" holders, may donate to political candidates.

Foreign nationals are allowed to undertake some political actions in the U.S., as long as those actions are not "connected with any election to political office at the federal, state, or local levels." For example, an FEC advisory opinion (the FEC's interpretation of the Federal Election Campaign Act, which it is charged with administering), established that foreign nationals may underwrite issue-oriented ads as long as they do not mention "candidates, political offices, political parties, incumbent federal officeholders or any past or future election."

Dr. (Mrs.) Okereke-Onyuike’s open and financial support for the Obama campaign qualifies as a foreign government or corporation’s support for a political candidate.

This is because she is the head of Nigeria’s Stock Exchange, which is affiliated to the Nigerian Government. When the veil is lifted the American people and Government may see the hands of the Central Bank of Nigeria and even the legs of the Federal Government of Nigeria. But we know that there is no such official complicity in this matter. Even if Mrs. Okereke-Onyuike and her Africans for Obama intend to run pro-Obama adverts, they would still be running contrary to the American Laws because foreign nationals may underwrite issue-oriented advertisements as long as they do not mention "candidates, political offices, political parties, incumbent federal officeholders or any past or future election.”

Barack Obama is a candidate in respect of a future election and any advertisement in his support by non-Americans would be held against him and the campaign organization.

In addition to the legal issues is the morality of the whole exercise. Is it morally defensible for Dr. (Mrs.) Ndi Okereke-Onyuike, Director-General of the Nigeria Stock Exchange to openly support and canvass for financial support for a politician running for public office? Is it right and proper for the head of the Stock Exchange to support one presidential candidate against another in the United States Presidential elections? The answer to each question is of course NO.

There is still the possibility that Barack Obama might not win the American Election. Does a McCain victory not jeopardize the business interest of Nigeria especially the companies quoted on the Stock Exchange? Even if the Democratic Party wins the next election, could a Republican Party victory in subsequent elections seek to extract a pound of flesh from the Nigerian business community? There are many possibilities that call for caution on the part of the Stock Exchange community. On the home front, the participation in and support of the Stock Exchange boss for the presidential campaign of one politician against the other puts members of the Stock Exchange who do not share passion and bias, in a dilemma.

Dr. (Mrs.) Ndi Okereke-Onyuike, Director-General of the Nigeria Stock Exchange should consider the greater national and corporate interest of Nigeria and the Stock Exchange and opt out of this Obama Campaign exercise. Indeed, it is time for the corporate sector to realize that it is illegal for them to support one political interest against the other. The failed Third-term campaign, funded by Corporate Nigeria and spear-headed by Dr. (Mrs.) Okereke-Onyuike, is still fresh in our memory. The lack of sanctions by the Corporate Affairs Commission has emboldened this new venture into the American political terrain. With a strict law enforcement regime in the United States of America, both the Stock Exchange and the Government of Nigeria may pay for this avoidable political indiscretion.

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Hon. Nimi Walson-Jack is a Civil Society activist, immediate past General Secretary of the Nigerian Bar Association. He is currently an Electoral Commissioner with the Rivers State Independent Electoral Commission, (RSIEC). He sent this from Port Harcourt.

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