-Caveat Lector-
>From http://www.washingtonpost.com/wp-dyn/articles/A7779-2002Jun18.html
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washingtonpost.com
Drug Firms Among Big Donors at GOP Event
By Jim VandeHei and Juliet Eilperin
Washington Post Staff Writers
Wednesday, June 19, 2002; Page A01
Pharmaceutical companies are among 21 donors paying $250,000 each for red-
carpet treatment at tonight's GOP fundraising gala starring President Bush, two
days after Republicans unveiled a prescription drug plan the industry is backing,
according to GOP officials.
Republican officials declined to disclose the donors to the event at the Mayflower
Hotel, which is expected to net as much as $30 million for the party. But people
familiar with the dinner said drug companies, as well as financial service firms, are
among the biggest contributors. Both industries are lobbying aggressively to fend off
new, costly regulations in the waning days of this congressional session.
Drug companies, in particular, have made a rich investment in tonight's event.
Robert Ingram, GlaxoSmithKline PLC's chief operating officer, is the chief corporate
fundraiser for the gala; his company gave at least $250,000. Pharmaceutical
Research and Manufacturers of America, a trade group funded by the drug
companies, kicked in $250,000, too. PhRMA, as it is best known inside the Beltway,
is also helping underwrite a television ad campaign touting the GOP's prescription
drug plan.
Pfizer Inc. contributed at least $100,000 to the event, enough to earn the company
the status of a "vice chairman" for the dinner. Eli Lilly and Co., Bayer AG and Merck
& Co. each paid up to $50,000 to "sponsor" a table. Republican officials said other
drug companies donated money as part of the fundraising extravaganza.
Every company giving money to the event has business before Congress. But the
juxtaposition of the prescription drug debate on Capitol Hill and drug companies
helping underwrite a major fundraiser highlights the tight relationship lawmakers
have with groups seeking to influence the work before them.
A senior House GOP leadership aide said yesterday that Republicans are working
hard behind the scenes on behalf of PhRMA to make sure that the party's
prescription drug plan for the elderly suits drug companies. Republicans favor a
private-sector solution to lowering drug costs, one that requires seniors to buy
insurance for drugs from companies or through a managed-care plan; Democrats
want the drug benefit to be part of Medicare, a change companies fear could drive
down profits.
The House Energy and Commerce Committee will debate the Republican plan
today but break early so GOP lawmakers can attend the dinner.
GlaxoSmithKline spokeswoman Nancy Pekarek said the fact that Congress was
considering the GOP drug plan the same day as the annual fundraiser was
"coincidental," though she said her company backed the principles behind the
House proposal. "Generally we do support Republicans because they favor a
business environment that is actually conducive to high- risk R&D investment," she
said.
Both parties hold glitzy fundraising events here to wine and dine their most
generous donors. Democrats often draw six-figure contributions from Hollywood
stars, wealthy trial lawyers and the heads of labor unions, many of whom are
looking for help on legislation.
Last night, Democrats were working with a group called the Progressive Donor
Network, which is funded by their biggest donors, to pull together ads criticizing the
GOP for its position on prescription drug coverage, according to a Democratic
operative familiar with the discussions. Democrats are developing as one of their
major campaign themes an attack on the GOP for its close relationship to
businesses, especially those, such as drug companies, that polls show are
unpopular with voters.
Democratic National Committee Chairman Terence R. McAuliffe called the
fundraiser an "explicit quid pro quo [that] speaks volumes about where Republican
priorities lie."
Still, tonight's event shows how Republicans are smashing fundraising records
under the leadership and guidance of Bush and his political team. They are
approaching corporations and lobbyists early and often, offering face-time with
Cabinet officials and party luminaries, such as Lynne Cheney, the wife of the vice
president, who headlined a dinner last night for big donors at the National Museum
of Women in the Arts.
Nancy Dorn, deputy director of the Office of Management and Budget, is co-hosting
a briefing on the federal budget fight today, and Commerce Secretary Donald L.
Evans is the keynote speaker at a luncheon afterward.
With more than 6,000 guests expected, tonight's dinner is likely to be the best-
attended GOP fundraiser since President Ronald Reagan endorsed Vice President
George Bush in the 1980s. To accommodate the crush of guests, organizers have
begun asking $100,000 donors to take just one table, instead of the four to which
they are entitled. The event is unlikely to top the $33 million Republican National
Committee gala featuring the president last month.
Many of the donors see this as the last "soft money" hurrah before the new
campaign finance law takes effect after the fall elections. Most of the money raised
tonight will be in the form of unregulated soft money; the proceeds will be split
between the Republicans' House and Senate campaign committees. "This could be
the last one of these," said Rep. John A. Boehner (R-Ohio), the chairman of the
event. Boehner raised more than $3 million.
In addition to GlaxoSmithKline, others that contributed $250,000 to the event
include Blue Cross/Blue Shield, PepsiCo. Inc., Microsoft Corp., CSX Corp., Siebel
Systems, Mandalay Resort Group, Fannie Mae and Freddie Mac. Trade
associations representing beer wholesalers and life insurers anted up the same
amount. Smaller donors include MBNA Corp., Fidelity Investments, the Securities
Industries Association, Merrill Lynch & Co. and Deloitte & Touche.
© 2002 The Washington Post Company
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