DNC won’t repay Duke Energy for Charlotte convention costs

The Washington Times ^ | 3/1/13 | Susan Crabtree

[Liz]

The Democratic National Committee has no plans to repay Duke Energy for an unprecedented $10 million line of credit it guaranteed to help the Democratic convention’s local host committee put on President Obama’s three-day nominating convention in Charlotte, N.C., last September.

A Duke company official said the company was claiming the money as a business expense for tax purposes, meaning shareholders will foot $6 million of the cost, according to a report in the Charlotte Observer.

The company didn’t limit its convention financial support to the loan guarantee. It also donated $4.1 million to a separate fund formed to accept corporate money for parties outside the convention hall and $1.5 million in in-kind contributions to the host committee for office space, furniture and other expenses.

Mr. Rogers personally gave $339,000 in cash and in-kind services, including the hiring of a fundraising assistant, the Observer reported.

The host committee struggled for more than a year to raise money, ultimately amassing $24.1 million, short of an already revised goal of $31.1 million. The original target was $36.6 million.

The only FEC report available from the host committee dates back to October and shows $8.7 million in outstanding debts from loans.

[Phillipian]

Damages were sustained in this by shareholders, not customers. Shareholders were damaged by the bad debt. They would have standing to sue, I thinks.

[TurboZamboni]

true that.