US billionaire who escaped NZ drugs conviction backs Kerry

By HELEN TUNNAH



The Ohio billionaire who escaped a drugs conviction in New Zealand has poured millions into John Kerry's presidential election campaign.

Peter Lewis, also a multimillion-dollar backer of attempts to liberalise America's marijuana laws, spent eight months fighting the Herald's attempts to name him when he was caught importing drugs here during the America's Cup.

Lewis was discharged without conviction, after customs officers found cannabis in his luggage at Auckland Airport, and on his luxury converted tug Lone Ranger.

"Enjoy the fresh air," Judge Harvey told Lewis, when he appeared in the Otahuhu District Court in January 2000.

"Our harbour is a wonderful place and I'm sure you're out there enjoying it. Don't let anything get in the way of you and the atmosphere."

He escaped conviction after making a $53,000 donation to drug rehabilitation centre Odyssey House and had his name suppressed - a decision eventually overturned by the Court of Appeal.

The episode is widely reported in the US, and on internet sites detailing his involvement with Democratic-friendly political advocacy and advertising.

Although a law passed two years ago in the United States tried to tighten the regulation of political spending, it can be avoided.

The Centre for Responsive Politics says Lewis has now spent US$14.43 million ($20 million) in "soft money" donations to special-interest groups backing John Kerry's bid to oust George Bush as President.


There are strict limits on how much an individual or a corporate can donate directly to an election campaign, party or candidate.


Donors are now using what are termed "527s", named after the clause of the tax law that allows them to avoid political spending restrictions.

The Washington-based centre estimates US$3 billion will be spent this election, on the presidential, state and local elections.

Centre spokesman Steven Weiss labels 527s a giant loophole in the law, allowing virtually unlimited spending. The only real constraint on 527s is that their advertisements cannot ask directly for a person's vote.

Although the anti-Kerry Swift Boat Veterans for Truth is perhaps the best known 527, the Democrats are just as reliant on soft-money advertising. Weiss says the reason for the huge spendup is simple.

"Nine out of 10 times the candidate who spends the most money is the candidate who wins the election."

The Bush fundraising war-chest has amassed US$338 million, compared with Kerry's US$310 million, both including US$74 million of taxpayer-funded support.

* Helen Tunnah visited the Centre for Responsive Politics during a State Department-funded visit to Washington.