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No one has yet suggested that the WorldCom scandal could strike at the heart of the Bush administration quite as starkly as Enron, but there are embarrassing connections that could spiral into a political scandal.
Details are emerging of a highly amicable and lucrative relationship between the shamed WorldCom conglomerate and Republican Senate Majority Leader Trent Lott, one of Bush's closest confidants on Capitol Hill.
The new Trent Lott Leadership Institute received a $1 million donation from WorldCom to underwrite a fundraising event as recently as 23 May. While the regulations limit the amount a company like WorldCom and its telecom subsidiary MCI can contribute to Lott's campaign, there are no such restrictions on giving to certain types of charitable foundations.
At the same time, Lott has named a senior representative at WorldCom to the commission studying internet commerce. WorldCom, until now one of the largest employers in Lott's home state of Mississippi, has a significant interest in the shape of potential legislation on internet commerce. In fact, the company has recently lobbied for legislation to compete with rival telecoms company AT&T's expanding service. Lott has denied that the appointment to the commission was related to MCI's support of his Leadership Institute.
WorldCom was seeking political influence at the core of the administration right up to the eleventh hour before admitting its fraud and rubbing shoulders with the President. Only last week, the company gave a $100,000 donation to a gala at which Bush was guest of honour; WorldCom's gift was sufficient to have the firm feature as a Vice-chair of the event on its programme.
Ed Vulliamy (UK) Observer Sunday 30 June
http://www.observer.co.uk/worldview/story/0,11581,746636,00.html