Assemblyman Haynes asks for probe of Greenpeace

11:55 PM PST on Wednesday, November 12, 2003

By JIM MILLER / Sacramento Bureau, Riverside Press Enterprise

SACRAMENTO - Assemblyman Ray Haynes, R-Murrieta, has asked Attorney General Bill Lockyer to investigate Greenpeace's use of charitable contributions, contending that the worldwide environmental organization is violating tax law.

Haynes' Nov. 6 letter to Lockyer, made public Wednesday, stems from accusations by a Washington-based group, Public Interest Watch, which monitors the compliance of non-profit agencies with charity rules.

The group contends that Greenpeace, over three years, illegally spent $24 million in tax-deductible contributions on barred activities, such as trying to block military ships, by shifting money between different bank accounts.

"Put simply, this amounts to money laundering," Haynes said in his letter.

Greenpeace is incorporated in California. Attorney general's spokesman Tom Dresslar said Wednesday that his office is reviewing Haynes' letter.

State records show that Greenpeace has no lobbying presence in Sacramento.

A Greenpeace spokeswoman was unavailable for comment.

Last week, Lockyer announced plans to introduce a package of legislation in January designed to tighten the rules on tax-exempt charitable groups and fund-raisers operating in California.

Current law allows groups to spend tax-deductible donations on education. But the rules are not clear on when education ends and advocacy begins.

Haynes called on Lockyer to prosecute Greenpeace under various laws, including the state's unfair-business-practice law. Earlier this year, Haynes and other Republicans claimed that the law had become a vehicle for abuse by unscrupulous attorneys who filed "shake-down" lawsuits against small businesses in Southern California.

Reach Jim Miller at jmiller@pe.com jmiller@pe.com or (916) 445-9973.

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