Obama should follow the Clintons’ money

As the well-drilled Clinton attack machine moves into high gear - releasing pictures of Barack Obama in a turban, spreading fear over 3am leadership - its opponent, apart from winning primaries (another in Mississippi last week), has yet to return effective fire.

For ammunition, Obama might look no further than a party thrown earlier this month in Toronto by the diminutive mining financier, movie producer and global philanthropist Frank Giustra (right).

The city's annual mining convention was taken by surprise by Giustra's guest list, which included Tom Cruise, John Travolta, Robin Williams, Elton John, Shakira and the star with the brightest celebrity wattage of all, former US president Bill Clinton.

The two men have been friends since Giustra flew Clinton in his private jet to Kazakhstan on a 2005 visit to see the semi-democratic President Nazarbayev. The Kazakh strongman said the Clinton connection made "an impression". Two days later, the New York Times reports, Giustra signed a major deal giving him a stake in three uranium projects controlled by state-owned Kazatomprom. On another occasion, Clinton and Giustra flew down to Colombia to see President Uribe and, hey-ho, secured a lucrative oil contract.

In return, the 50-year-old Italian-Canadian has donated more than $130m to Clinton's charities and the pair have formed a separate foundation, the Clinton-Giustra Sustainable Growth Initiative, that's raised $350m so far. Giustra says he's "so energised by the thought of alleviating poverty" that he now devotes 90 per cent of his time to it.

Back over the border, Bill's back-scratching and interaction with questionable political regimes is raising new questions of ex-presidential propriety. If America is destined for a his'n'hers 'Billary' presidency, the argument goes, then it would behove the couple to be transparent in their affairs. But from Whitewater to the Rose law firm billing records, the Clintons have a history of being secretive, and do not help themselves by withholding otherwise innocuous information so that it becomes loaded with conspiracy-thinking.

In theory, Bill Clinton's global philanthropy business and his wife's unpredictable political campaign are separate. In practice, at least two dozen of Hillary's $100,000 campaign donors, or 'Hillraisers', are also donors to Bill's foundation. According to the New York Times, Bill has raised substantial sums abroad, including funds from the Saudi royal family, the governments of Kuwait and Qatar and the king of Morocco.

But for several weeks late last year, the foundation suggested that a previously undisclosed $31.3m donation had not come from a single donor. Then, shortly before Christmas, Giustra acknowledged the contribution. Meanwhile Hillary has declined to release her tax records, a pro forma step for any politician seeking high office.

US campaign finance laws are clear: an absolute prohibition on foreign donations to presidential campaigns and a limit on US citizens of $2,300 in direct contributions. Presidential foundations, however, are unconstrained by the sum or source of donations. "The vast scale of these secret fund-raising operations presents enormous opportunities for abuse," noted the California Democratic congressman Henry Waxman earlier this year.

Whether Hillary Clinton's tax records bear fruit for Obama, or Clinton's relationship with Giustra turns out to be more than altruistic, the high-flying, money-minting former president is at least trying to get some of his affairs in order.

In January, Clinton confirmed he was negotiating a large payout before cutting ties with Yucaipa, the investment company owned by his fun-luvin' friend Ron Burkle. Last week, it became clearer why: a team from Brazil's Labour Ministry found "degrading" living conditions for sugarcane workers employed by an ethanol company whose investors include Yucaipa and several of Bill's friends.

A spokesman said Clinton found the allegations "deeply troubling" and reiterated that he was taking steps to ensure there is "an appropriate transition" for his business relationships should his wife win the nomination. ·