Problem Spending And Mass Resignations Threaten To Implode RNC

RNC Chair Michael Steele
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With Republicans poised for a strong showing in the November midterms, the Republican National Committee is reeling from a spending scandal that has now led to the resignation of top figures in the party and threatens to squander the political wind Republicans have at their backs.

Many of the details are inside baseball, but they add up a serious crisis in the leadership of the national GOP. Steele’s 14-month tenure at the RNC was already defined by an ongoing series of [gaffes](http://tpmdc.talkingpointsmemo.com/2010/01/rnc-members-say-steeles-a-showboat-but-arent-ready-to-pull-up-his-anchor.php) and damaging press stories, including about Steele’s questionable [book](http://tpmdc.talkingpointsmemo.com/2010/01/steele-i-wrote-this-book-before-i-became-chairman-um-really.php) and a controversial leaked RNC fundraising [presentation](http://www.politico.com/news/stories/0310/33866.html).

The catalyst of the current crisis was the [revelation](http://tpmlivewire.talkingpointsmemo.com/2010/03/rnc-spent-nearly-2000-at-club-with-topless-dancers.php) just over a week ago in the *Daily Caller* that about $2,000 of RNC funds had been used at Voyeur West Hollywood, a bondage-themed club, at an event to court young donors. The RNC staffer who authorized that payment for the Young Eagles program was promptly [fired](http://voices.washingtonpost.com/44/2010/03/reports-say-young-eagles-direc.html).

Appearing Monday morning on ABC in his first [interview](http://tpmlivewire.talkingpointsmemo.com/2010/04/steele-on-nightclub-charges-i-was-very-angry.php) since the scandal broke, Steele insisted he was staying on board at the helm of the RNC.

A few hours later, *Politico* [reported](http://www.politico.com/blogs/bensmith/0410/RNC_loses_top_fundraiser.html?showall) that Sam Fox, ambassador to Belgium during the Bush Administration, resigned from a position on a high-level RNC fundraising board. Ben Smith called Fox one of the RNC’s “few remaining connections to the traditional GOP donor base.”

Making matters worse, the RNC’s newest fundraiser was found to have a checkered professional history. *Politics Daily* [reported](http://www.politicsdaily.com/2010/04/04/rnc-chairman-steeles-newest-aide-misused-baseball-groups-money/) on Sunday that Steele recently hired longtime friend Neil Alpert as his special assistant for finance. But Alpert had been embroiled in a spending [scandal](http://tpmmuckraker.talkingpointsmemo.com/2010/04/rnc_hires_fundraiser_fined_for_misusing_pac_money.php) at a previous employer a few years ago — including for using the corporate account to pay his rent — leading to a fine by Washington campaign regulators. TPMmuckraker [reported](http://tpmmuckraker.talkingpointsmemo.com/2010/04/flashback_new_rnc_fundraiser_allegedly_spent_pac_m.php) that Alpert also allegedly spent his employer’s money at, of all things, a night club.

Late Monday, the news [broke](http://dyn.politico.com/printstory.cfm?uuid=CFFCE889-18FE-70B2-A842DD8C14B37BB7) that RNC Chief of Staff Ken McKay, Steele’s top aide, was resigning. RNC spokesman Doug Heye suggested that McKay’s departure was a result of the bondage club scandal, [telling](http://dyn.politico.com/printstory.cfm?uuid=CFFCE889-18FE-70B2-A842DD8C14B37BB7) *Politico*, “This is about ensuring that we have the tightest financial controls in place and to ensure that every nickel we spend is done with the goal of winning in November.”

The man replacing McKay is Mike Leavitt, who had been overseeing the party’s communications efforts. But an anonymous Republican [told ABC](http://abcnews.go.com/GMA/Politics/michael-steele-facing-troubles-rnc/story?id=10296291) that four communications staff quit in the last two months because of Leavitt’s “bluster.” Leavitt was campaign manager during Steele’s losing 2006 bid for Senate in Maryland.

Also cutting ties with the RNC yesterday was veteran GOP operative [Curt Anderson](http://onmessageinc.com/onus-curt-anderson.htm), who had served as a strategist during Steele’s Senate bid. “Given our firm’s commitments to campaigns all over the country, we have concluded it is best for us to step away from our advisory role at the RNC,” Anderson said, the *Washington Post* [reported](http://www.washingtonpost.com/wp-dyn/content/article/2010/04/05/AR2010040502835.html?hpid=topnews).

So what does all this mean for the man at the top? NBC [reports](http://firstread.msnbc.msn.com/archive/2010/04/06/2258600.aspx) that Steele may be able to hold onto his job for now, with an assist from an expected record fundraising haul in March.

Late Update: A RNC member from New Hampshire has [resigned](http://tpmlivewire.talkingpointsmemo.com/2010/04/republican-national-committee-member-from-nh-resigns-in-protest.php) in protest.

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