(Chicago, IL) -- Today NLPC President Peter Flaherty reacted to Jesse Jackson’s expected release of an internal 102-page report on the finances of his various organizations, including the Citizenship Education Fund (CEF). NLPC filed a formal Complaint with the Internal Revenue Service (IRS) against CEF on February 28.
Flaherty stated, "First of all, it is extraordinary that Reverend Jackson is releasing any information. He has been very good at demanding accountability from others, but his own financial affairs have been conducted in secret for years. Jesse Jackson has called us ‘right wing extremists’ but by announcing that CEF will have to amend its tax returns, he has acknowledged that our Complaint identifies legitimate issues."
"This report is inadequate. It is not an independent audit. Billy Owens, who complied the report, works for Jesse Jackson. We believe that an audit by the IRS is warranted. It is time for a real audit, not a public relations offensive."
"This report does not even address the most significant element of our Complaint, namely that CEF may be operating outside of its tax-exempt purpose. Nor does it address the appearance that CEF violated its tax-exempt status by engaging in activities that have enriched Jesse Jackson, his family and friends."
"By threatening boycotts and opposition to corporate mergers, Jesse
Jackson has extracted millions of dollars from corporate America. In effect,
he has been providing business services and facilitating business transactions
for a fee, activities inconsistent with his group’s tax-exempt status.
A recent example is the GTE- Bell Atlantic merger. Jackson dropped his
opposition to the merger and the companies reportedly provided a million
dollars to CEF."
Flaherty continued, "CEF may have also violated the private inurement
and private benefit doctrines insofar as the funds from the non-profit
have been used for private personal ends. Paying off a mistress is not
a legitimate use of the assets of a tax-exempt group. Furthermore, two
of Jackson’s sons, both CEF officials, were granted a lucrative Anheuser-Busch
distributorship in Chicago, despite the fact they had no experience in
the beer industry."
NLPC is a nonpartisan, nonprofit foundation promoting ethics and accountability in government through research, education and legal action.
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For a copy of the Complaint, please visit http://www.nlpc.org.