Obama rewarded party donors with 'key jobs in government and millions of dollars in contracts'



President launches $5 raffle for private lunch at White House

Donors were given key posts and contracts, report finds



President Obama faced fresh controversy today after it emerged that he rewarded rich supporters who donated cash to his election campaign with influential jobs in government.

Obama had previously promised during his presidential run in 2007 to cut out wealthy donors who buy their way into key posts.

But a a report has found that 200 donors were rewarded with key posts in the White House and lucrative federal contracts.



Broken promises: Barack Obama pledged in 2007 to reduce the influence of moneyed interests but actually rewarded his biggest donors with top roles in government

The donors are known as 'bundlers' as they use a loophole that prevents large individual donations and instead groups together a number of cash gifts from different people.



The scandal will raise fresh questions over Obama's credibility in the 2012 election campaign and his promise to reduce the practice of buying influence in politics.



The report by the Centre for Public Integrity shows how donors were given jobs in the Department of Justice, Department of Energy and the Federal Communications Commission, among other federal agencies, and been appointed to policy advisory commissions.

The study also discovered that one of the most prominent donor was Donald H. Gips who gave half-a-million dollars to Obama's election campaign in 2007.

Gips went on to take charge of hiring in the White House and was later named ambassador to South Africa.

His company, Level 3 Communications, was reportedly later granted $13.8m in stimulus contracts for broadband projects.

The report added that 80 per cent of Obama donors who raised $500,000 or more were given 'key administration posts'.

Donors: Cynthia Stroum and Donald H. Gips were given jobs inside the White House after raising money for the Obama presidential campaign



Food and chat: Obama launched a $5 raffle for people to win a dinner with him at the White House. Here, he hosts a picnic in the garden on Wednesday

One of the donors, Cynthia Stroum, became U.S. ambassador to Luxembourg but resigned before the release of a report that branded her 'aggressive, bullying, hostile and intimidating.'

Another reward for donors is reported to have been access to the White House. According to iWatch, the 'bundlers account for more than 3,000 White House meetings and visits.'

A large number of the visits are reported to have happened in the first few months that Obama was president.

Obama's special treatment of donors is in direct contrast to promises he made before he was elected.

He said that rich people 'get the access while you get to write a letter, they think they own this government. But we're here today to take it back.'

Details of Obama bundling emerged as he launched a raffle for $5 to give supporters the chance to take part in a casual dinner with him.

'We rely on everyday Americans giving whatever they can afford--and I want to spend time with a few of you,' Obama wrote in an e-mail to followers.

'So if you make a donation today, you'll be automatically entered for a chance to be one of the four supporters to sit down with me for dinner. Please donate $5 or more today.'

The e-mail claims that the campaign does not take contributions from lobbyists or special-interests.

But in recent months the president has conducted several fundraising events targeting rich donors. These are not mentioned in the email, according to CNS news.

'Most campaigns fill their dinner guest lists primarily with Washington lobbyists and special interests,' the e-mail claims.