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US presidential candidates use loophole to set up joint accounts

(Xinhua)
Updated: 2008-10-22 10:17

LOS ANGELES -- Both Democratic presidential candidate Barak Obama and his Republic rival John McCain used a loophole in the law to sidestep caps on direct donations, the Los Angeles Times reported on Tuesday.

Federal law caps direct donations to a presidential campaign at US$4,600, but Obama and McCain have used a loophole in the law to set up joint accounts with their parties to which people contribute far more, the Los Angeles Times said.

Californians have given at least US$30 million, including US$16 million last month, to Obama's campaign since Obama set up the Obama Victory Fund in July, said the paper.

Obama raised more than US$36 million last month, close to half of it from wealthy California donors who gave up to US$61,600 each, surpassing the US$4,600 limit, the paper said.

Donors can write a single large check to the Obama Victory Fund, and have it split among Obama, the Democratic National Committee (DNC) and certain state accounts for the Obama campaign's benefit, said the paper.

A review of these donations shows that more than half, US$35.9 million, came from people giving more than US$4,600. Almost a fourth, US$16.7 million, consisted of donations of US$28,500 or more, according to the paper.

Since the Obama Victory Fund was established in July, Obama has collected US$134 million. Nearly US$78 million, or 62 percent, has come from donors giving amounts greater than US$4,600, the paper said.

But the paper did not say how much McCain's campaign had collected by sidestepping caps on direct donations.