Online NewsHour: Public Broadcasters Investigated -- July 20, 1999



	BROADCASTERS INVESTIGATED

July 20, 1999

Media correspondent Terence Smith reports on House hearings on charges that some PBS and NPR stations improperly traded, rented or swapped donor lists with political organizations.

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TERENCE SMITH: Earlier this year, the mother of a four-year-old Barney fan sent Boston Public Television Station WGBH a $40 contribution in her son's name. Shortly thereafter, her son received a fund-raising letter, not from WGBH, but from the Democratic National Committee. Mystified, the mother inquired with the station and found that WGBH had been swapping donor lists with the Democratic National Committee-- not once, but repeatedly, some 32,000 names over the course of several years. When the news broke, further inquiries revealed that stations in New York, San Francisco, Los Angeles, and WETA in Washington, a co-producer of the NewsHour, have engaged in similar list-swapping. Donor lists have been provided to Republican organizations as well, including the 1996 Robert Dole Presidential Campaign.

REP. W. J. TAUZIN: The subcommittee will please come to order.

TERENCE SMITH: Today, the House Subcommittee on Telecommunications held an emergency hearing regarding these so-called list swaps. Republican Chairman Billy Tauzin of Louisiana opened the hearing with harsh words for PBS.

REP. W. J. TAUZIN: That a publicly supported entity should think for a moment that it has the right to trade private information about the citizens of this country who deem to support it with any third party for commercial benefit is outrageous -- should be outlawed if it is not yet, and will be outlawed if we have the chance to do so in legislation this year. Secondly, trading that information with a political party, with a public broadcast station cozying up to any political party, any of the political parties in America is outrageous. The idea that public funds spent at a public broadcast station should inure to the benefit of any one of the political parties of our country is outrageous. It threatens the integrity of public broadcasting, it further deepens the suspicion that many people have had about public broadcasting, and it damages the efforts being made in Washington, D.C. and across America to build public support.

Expressions of disappointment

TERENCE SMITH: Almost all committee members in attendance echoed the chairman's disappointment with the PBS member stations.

REP. THOMAS SAWYER: Thank you for having this hearing. I think we all come here with a measure of discomfort over the specifics that bring us here today. And the notion that broadcasters would sell donor lists to any third party brings deep dismay at the fact that my donation would be available as a matter of what I would never have suspected to be public record.

TERENCE SMITH: Among the committee's first panel of witnesses was Robert Coonrod, president and CEO of the Corporation for Public Broadcasting.

ROBERT COONROD: Mr. Chairman the information I'm going to give you is not comprehensive but it is accurate. It will take us time to develop the comprehensive information, and our inspector general will be assisting in that process and we will be able to provide a comprehensive report on the practices in the near future. But based on what we know today, approximately 50 public television stations out of 353 public television station, that's about 15 percent, exchanged lists with other non-profit organizations. Almost all of that them do at that by the use of list brokers or intermediaries. Now, 30 stations have rented lists from political organizations. Fewer than 30 also appear to have exchanged member lists with political entities of either or both parties. By exchange we mean they have made their donor names available in return. We do not condone the buying, selling or trading of lists with partisan political campaigns or committees. Under the CPB procedures, the inspector general will -- has been informed of these reports, the reports that we have, and we will cooperate fully with whatever factual review the inspector general undertakes and we will cooperate with whatever recommendations he makes.

REP. CHRISTOPHER COX: Mr. Coonrod, what action have you taken against the stations?

ROBERT COONROD: Unless the stations have violated some law or regulation, there won't be any sanctions.

REP. CHRISTOPHER COX: You would not have any repercussions, no sanctions, unless there were a proven violation of law?

ROBERT COONROD: I think that what -- I think if a station makes its donor list available to a political party, that is wrong. However, it is not illegal.

REP. CHRISTOPHER COX: You can't state that categorically, can you?

ROBERT COONROD: I can't state what categorically?

REP. CHRISTOPHER COX: That sharing your list with a political party is not illegal?

ROBERT COONROD: I'm neither an attorney nor an expert in the I.R.S. code. But there are ways that can be done in which it is entirely legal.

Acutely aware

TERENCE SMITH: Ervin Duggan is president and CEO of the Public Broadcasting Service.

ERVIN DUGGAN: Many stations have policies against such practices. Clearly, however, these policies need better auditing, they need strong enforcement and they need to be universal. We need to have a universal ethic throughout our system. Fortunately, our stations are now acutely aware of this issue, and they are taking steps even as we meet to address it quickly and forthrightly. In light of these recent developments, PBS's development office and our development advisory committee made up of station leaders in the development field are issuing an advisory this week strongly urging our member stations to establish policies strictly prohibiting the exchange or rental of lists to partisan political campaigns, committees or groups. And I would like to echo what my colleague, Bob Coonrod, has just said: That we are very much in favor as members of the committee are in favor of strict privacy policies that prevent unauthorized use of member or donor names of an absolute prohibition against the partisan use of lists or names, and I personally am very much attracted to Congressman Stearns' suggestion of a distinguished group who could do a review of current practices and make strong recommendations about what the ethics should be. We, of course, will be leading an effort of that sort within our enterprise but I think it would help restore trust to have the kind of independent review that Congressman Stearns spoke of.

TERENCE SMITH: Before dismissing the panel, Chairman Tauzin recommended the Corporation for Public Broadcasting provide the committee with weekly reports on its internal investigation of the list swapping. That probe is expected to take at least 30 days. Jim.

JIM LEHRER: We had hoped to bring you a debate on PBS spending with two of the congressmen who were present at today's hearing, but they are unable to join us due to votes on unrelated matters now going on on the House floor. We'll come back to this debate on a later date.