Gingrich confronted over cash, charity
June 14th, 2011
04:00 PM ET
9 years ago

Gingrich confronted over cash, charity

Concord, New Hampshire (CNN) – Newt Gingrich's campaign vehemently denied any wrongdoing following an ABC News report Tuesday that questions business practices between two of his organizations, one a for-profit business and the other a charity.

"Despite all the innuendo in the ABC story, their team of journalists did not find any activity that was not fully supported by the law," the GOP presidential candidate's Communications Director Joe DeSantis wrote in a statement.

The ABC News report said Gingrich's charity, Renewing American Leadership (ReAL) paid $220,000 over two years to Gingrich Communications, one of the candidate's for-profit businesses.

The story also said that the charity "also served as another avenue to promote Gingrich's political views, and came dangerously close, some experts say, to crossing a bright line that is supposed to separate tax-exempt charitable work from both the political process and such profit-making enterprises as books and DVDs."

Blasting back that ABC News put out "baseless insinuations," the Gingrich campaign's DeSantis added that "both ReAL and Gingrich Communications took great care to make sure all resources were being used legally and ethically. Most of the payments from ReAL to Gingrich Communications were to compensate the time of ReAL's part time executive director, who was an employee of Gingrich Communications. This is perfectly normal and common practice."

"The rest was to purchase books, which ReAL used for their fundraising efforts," the statement continued. "The book purchases were made 'at cost' meaning there was zero profit made by Gingrich Communications or Newt on the sale."

The strong statement of denial follows a testy exchange caught on video earlier Tuesday in which Gingrich dodged – then verbally dressed down – a reporter after being repeatedly pressed about the business practices.

"Can you just answer the question as to why the charity you founded gave $200,000 to your for profit company?" pressed investigative producer Angela M. Hill of ABC News.

"No," Gingrich responded at one point, turning away from the producer. The Republican presidential candidate then said, "Give me one second," and privately huddled with press secretary R.C. Hammond.

After the sidebar, Gingrich again avoided the producer and her question, walking to the front of a room gathered to hear his breakfast speech at the Kimball Jenkins School of Art in Concord, New Hampshire. Gingrich was there to discuss the future of small business.

"We'll be happy to answer," Hammond told Hill after huddling with his boss. "He doesn't know what you're talking about," he said seconds later.

After the speech, as Gingrich exited, he was pressed once again on the singular question.

"Cover the speech," he told the producer. "I'm not concerned about that. The American people aren't concerned about that," Gingrich added before getting into his SUV and slamming the door.

The ABC News report says the payments were discovered after an audit, last month, sponsored by the office of West Virginia's secretary of state.

While saying that many of its questions to the Gingrich campaign have yet to be answered, ABC News did quote former Gingrich spokesman Rick Tyler, who responded to the claims before quitting Gingrich's campaign with others.

Tyler "told ABC News in a series of email exchanges prior to his resignation that the charity spent no money on political activity and 'did nothing to promote anyone's political career,'" the report states.

Updated 4:10 p.m.

Filed under: 2012 • Newt Gingrich
soundoff (40 Responses)
  1. Larry

    Poor Newt. As amoral and crooked as they come, but still has delusions of grandeur.

    June 14, 2011 02:24 pm at 2:24 pm |
  2. Mr Pragmatic

    Newt, Newt, Newt, you just never pass up a chance to do the wrong thing, do you?

    June 14, 2011 02:27 pm at 2:27 pm |
  3. TEE

    What is it going to take for the media to stop acting like Newt's behavior in business & in his life is some new story, he has been a scam artist his whole life..........

    June 14, 2011 02:30 pm at 2:30 pm |
  4. lynn

    All Gingrich knows is big money. His Tiffany revolving charge account, six figure charitable donations and vacation in Greek Islands. Must be nice way to live, and he expects the poor out of work slobs to understand, he feels their pain.

    June 14, 2011 02:31 pm at 2:31 pm |
  5. Roscoe

    It is a murky world in which Newt lives......why he wants to bring the whole country into his ugly world is beyond me but the American people should reject him.

    June 14, 2011 02:35 pm at 2:35 pm |
  6. Former Republican, but never again!

    Another Republican hypocrite who talks about integrity, but then does whatever he wants.

    June 14, 2011 02:44 pm at 2:44 pm |
  7. 'merica ruined by rethugs

    Newter is a walking disaster. Those ethics violations in the 90s surely haven't reformed the good Christian that Newtie tries to portray himself to be smh.

    June 14, 2011 02:44 pm at 2:44 pm |
  8. Jennifer Aument

    What a criminal.

    June 14, 2011 02:48 pm at 2:48 pm |
  9. sick of republican phonies

    What a slimy piece of human excrement Newt is! And the stooge defending him is just as bad!

    June 14, 2011 02:49 pm at 2:49 pm |
  10. The Dude

    "Despite all the innuendo in the story, their team of journalists did not find any activity that was not fully in accordance with the law," DeSantis said.

    Riiiggghhhtttt, that's precisely why old Newt was perfectly happy to discuss, wait...

    June 14, 2011 02:53 pm at 2:53 pm |
  11. chilly g

    newt may win the gop but not the presidential

    June 14, 2011 02:57 pm at 2:57 pm |
  12. V in Chicago

    Looks like Newty it still up to his same old tricks. Nothing new here.

    June 14, 2011 03:02 pm at 3:02 pm |
  13. kayla

    i smell a fat rat.

    June 14, 2011 03:03 pm at 3:03 pm |
  14. Anonymous

    Newt 2012: "Throw the Rascals In!"

    June 14, 2011 03:06 pm at 3:06 pm |
  15. rick perry makes me puke

    What a hypocrite!!! This clown talks about restoring values and other buzz words that excite the right wing at the same time he's going on a Greek cruise and paying off a $250,000 to $500,000 interest free Tiffany bill. What a joke. However, regardless of how bad this guy is, there is no excuse to vote for Rick Perry. Perry is popular among the knuckle-draggers in the Republican part, but wait until the rest of the country is introduced to this redneck.

    June 14, 2011 03:15 pm at 3:15 pm |
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