North Carolina Republican Party Chairman Robin Hayes speaks during the North Carolina Republican Party State Convention at the Wilmington Convention Center.
The day before his indictment was announced last week, Robin Hayes said he was stepping down as chairman of the North Carolina Republican Party because of health issues. The next day, the public learned that what was driving Hayes from office wasn't only his ailments, but the ill health of North Carolina's system of political fundraising.
The indictment handed up by a federal grand jury accuses Hayes of trying to funnel bribe money to state Insurance Commissioner Mike Causey on behalf of Greg Lindberg, a major political donor who owns a business subject to regulation by the insurance commissioner. Hayes, a former congressman, is also charged with three counts of making false statements to the FBI. Lindberg and two other people were also charged following an investigation that started when Causey, a Republican, took his concerns about attempted bribery to the FBI.
The details are still emerging, and those indicted maintain they didn't break the law. But the outlines of the case and actions that are not in dispute show a system of political fundraising that invites corruption and may be rife with it. The central problem is that while donors are limited to $5,400 in contributions to a state candidate, they can make unlimited contributions to a state political party.
That distinction encourages donors to get around individual contribution limits by giving large amounts to the party with a tacit understanding that a hefty share of that contribution will find its way to a specific candidate. That winking agreement is a constant temptation in the Democratic and Republican parties. In this case, the indictment says Hayes gave in to it by helping Lindberg channel $250,000 to Causey's campaign from contributions he had made to the state Republican Party. The trouble Hayes and Lindberg ran into, investigators say, is that their intention was revealed during calls and meetings, at least some of which Causey recorded.
The obvious fix would be to place limits on how much individuals can give to state political parties. That bill should be offered as soon as possible. Another improvement would be to restore and expand public financing for elections. The insurance commissioner, other Council of State offices and appellate court races were eligible for public financing before the Republican-led legislature ended the program in 2013.