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Salon Magazine Exclusive: Key Whitewater Witness David Hale Received Secret Cash Payments from Anti-Clinton Billionaire Richard Mellon Scaife

SAN FRANCISCO, CA, MARCH 17, 1998 | David Hale, the key witness against President Clinton in Kenneth Starr's Whitewater investigation, received numerous cash payments from a clandestine anti-Clinton campaign funded by conservative billionaire Richard Mellon Scaife, two eyewitnesses told Salon Magazine.

It is not known exactly how much money Hale received, but the eyewitnesses, Caryn Mann and her son Joshua Rand, said the payments occurred regularly over a two-year period, from l994 to l996, after Hale became a federal witness in Starr's Whitewater investigation. The payments ranged from as little as $40 to as much as $500, according to Mann and Rand.

Hale's payments came from representatives of the so-called Arkansas Project, a $2.4 million campaign to investigate Clinton and his associates between 1993 and 1997, according to sources familiar with the arrangement.

Two former executives of the American Spectator magazine, speaking on condition of anonymity, independently corroborated a key portion of Mann's story: that funds from the Arkansas Project went to David Hale. Under the scheme, two of Scaife's charitable foundations transferred as much as $600,000 a year to a charitable foundation which owns the conservative American Spectator, according to sources at the magazine. The American Spectator then transferred the funds to intermediaries, who made the cash payments to Hale.

The exclusive Salon report was written by Salon's Washington correspondent Jonathan Broder and investigative reporter Murray Waas.

Click here for the complete story.

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