Business puts the party in party conventions

Preparations continue inside the Pepsi Center before the Democratic National Convention in Denver, Colorado, August 24, 2008.

DENVER (Reuters) - Corporate America is lavishing parties on Democrats and Republicans at their presidential nominating conventions, defying promises by lawmakers to "drain the swamp" of special-interest influence in government.

Late-night cocktails, brunches, afternoon receptions and special events are on the agenda for Democrats in Denver this week and Republicans in St. Paul next week -- most sponsored by big companies, industry lobbying groups and labor unions,

Invited Democrats can bat a ball at the stadium of Denver's baseball team and see hip-hop star Kanye West perform. Some Republicans will attend a Texas honky-tonk with country singer Gretchen Wilson and a show by classic rocker Sammy Hagar.

Lobbyists arrived ahead of Monday's opening in Denver where the Democratic party this week will formally nominate Illinois Sen. Barack Obama to take on Arizona Republican Sen. John McCain in the November 4 presidential election.

Ethics reforms from mid-2007 bar members of Congress from attending lobbyist-paid parties in their honor at national conventions. This followed years of mostly Republican scandals that helped Democrats win control of Congress in 2006.

When the reforms were put in place, House Speaker Nancy Pelosi, a California Democrat, said they would help "drain the swamp that is Washington, D.C." But groups advocating good government are raising doubts.

CHANGE?

Whether the reforms clean up the conventions, even a little, by ending the blatant currying of favor displayed at functions honoring individual lawmakers remains to be seen, said Fred Wertheimer, president of campaign finance reform advocacy group Democracy21.

"These rules were never going to stop all the parties at the conventions ... Everyone and their brother holds receptions at the conventions," he said.

In the past, for instance, a major energy company might fete the energy committee chairman.

Now special interests are throwing parties billed as celebrations for entire state delegations, or for worthy causes, said Nancy Watzman, director of a project backed by the Sunlight Foundation that lists politicians' social events at www.politicalpartytime.org.

On Monday evening, a Denver nightclub will host parties thrown by several groups, including the U.S. Chamber of Commerce and the Distilled Spirits Council.

"This is a chance for the chamber to meet with a lot of people who don't work in Washington and hear their voices," said J.P. Fielder, spokesman for the chamber, the nation's largest lobbying organization for businesses.

Telecommunications group AT&T Inc contributed to both conventions' host committees and has been involved in the conventions for years "to showcase the elective process in the best light possible" and "to present and display the many leading edge technologies and innovations that we offer," said company spokesman Michael Balmoris.

Credit card company Visa Inc said it "is proud to support the Democratic and Republican national conventions" and will host financial literacy events for young attendees.

LABOR TOO

Union-backed events will have a high profile in Denver, and both conventions will feature events sponsored by lobbying groups for the entertainment, pharmaceutical, insurance, home building and mortgage banking industries, to name a few.

"We are hoping to contribute to a healthy process," said Rich Halberg, spokesman for Allstate Corp, the insurer, which is a sponsor of both conventions and one of many insurers seeking reforms in the regulation of their industry.

Qwest Communications International Inc is hosting private events "to celebrate the convention ... and to develop relationships," said spokeswoman Jennifer Barton. "We make every effort to comply with all state and federal regulations that govern events such as receptions, entertainment, etc., for candidates and elected officials," she said.

Despite good intentions over many years, last year's reforms and earlier attempts to clean up convention financing "largely have failed to make the nominating conventions more respectable political events," the good-government advocacy group Public Citizen said in a statement.

"The conventions have become mostly privately financed soirees funded by corporations and lobbying firms that seek favors from the federal government," said the group, which estimated that $112 million in private money will fund the 2008 conventions, compared to $16.4 million in public grants authorized for them under federal law.

"Unlimited soft money donations from special interests to pay for the conventions, and the lavish parties and wining and dining at the conventions, run counter to the federal election law and congressional ethics rules," the group said.

Brendan Daly, a spokesman for Pelosi, said convention ethics could be revisited by Congress, depending on how the next two weeks shaped up and the outcome of the elections. "We could look at this again in January," he said.

(Additional reporting by Jonathan Stempel, Dan Wilchins, Lilla Zuill, Jonathan Spicer in New York; Patrick Rucker in Washington; Editing by Howard Goller and David Storey)