The Minnesota campaign regulatory agency will "conduct an investigation" into state Republican Party finances, according to a letter issued by the Campaign Finance and Public Disclosure Board.
The Republican Party recently disclosed it is about $2 million in debt, a far higher figure than it had previously acknowledged.
Common Cause, a political watchdog group, had filed a complaint with the board last week, alleging the party broke the law in the way it used outside corporations to handle expenses for the 2010 gubernatorial recount and for its failure to disclose expenses.
In a letter dated Jan. 6 to Common Cause that the watchdog group released on Monday, the campaign finance board's executive director said that because the investigation is unlikely to be completed in time for its February meeting, the board may not take up the findings until March.
Gary Goldsmith, executive director of the campaign finance board, said he could not confirm or deny that an investigation has been opened or the veracity of the letter Common Cause released.
But he said the board typically sends a letter to a complainant if there are allegations of potential wrongdoing that would be violations if proved true.
The letter posted online by Common Cause was on board letterhead and bore Goldsmith's signature.
Party spokeswomen Heather Rubash said in a statement that the complaint was in response to the party's self-disclosure. "The only reason these liberal organizations are aware of the [party's] financial issues is because we told them," she said.
After a tumultuous year's end in which the party's chairman and treasurer resigned, the party revealed that its financial problems were deeper than previously reported.
Party officials now say they owe nearly $1.3 million, including a previously undisclosed $18,000 in credit card debt, and another $717,000 in debt that paid for the 2010 gubernatorial recount.
Former Treasurer David Sturrock said he was "neither consulted nor informed" about the recount costs.
If the Federal Elections Commission (FEC) or the state campaign finance board find violations, they could fine the state GOP hundreds of thousands of dollars.
The GOP already is paying off an August FEC fine of $170,000 fine for past violations.
RACHEL E. STASSEN-BERGER
