FBI Chief Said to Back Independent Probe of DNC Fund-Raising

WASHINGTON — FBI Director Louis J. Freeh has been urging the appointment of an independent counsel to investigate Democratic fund-raising practices during last year’s election, but Atty. Gen. Janet Reno has refused to accept that advice, law enforcement sources said Tuesday.

The sources insisted that the difference of opinion has not developed into a major dispute between the two, but that Freeh’s view is based on his belief that White House officials could be involved in the case.

As a result, Freeh shares concerns that Republican lawmakers have raised repeatedly with Reno that the Justice Department could have a conflict of interest in pursuing its probe.

Instead of heeding Freeh’s suggestion, Reno has relied on advice from career prosecutors in her department to reject calls for an outside counsel to probe the questionable fund-raising practices. She recently stated that she had concluded no “specific and credible evidence” has come to light that top-ranking officials in President Clinton’s administration may have violated any federal laws in the matter.

The Justice Department fund-raising probe began last November and was sparked by revelations that foreign-linked money appeared to have been funneled to the Democratic National Committee, which would violate U.S. election law. The probe has been conducted by the department’s public integrity section.

The probe’s investigative field work is being conducted by agents for the FBI, which is a branch of the Justice Department.

According to the law enforcement sources, who spoke on the condition of anonymity, Freeh has expressed his opinion supporting appointment of an independent counsel “at least two or three times” in the last three months.

“There’s not a big conflict between Freeh and the attorney general,” one of the sources said. “The FBI director has not insisted on his viewpoint. He recognizes that it’s up to the attorney general to make the call.”

Still, Freeh’s backing for a special prosecutor is sure to increase the drumbeat calling for one on Capital Hill.

“Frankly, I’m not surprised that . . . Freeh has recommended the appointment of an independent counsel,” Senate Judiciary Chairman Orrin G. Hatch (R-Utah), said Tuesday night in an interview with the Washington Post, which first disclosed the development.

Hatch said Freeh’s recommendation “is definitely significant, since Freeh is the individual responsible for conducting the investigation.”

Congressional pressure for appointment of an outside counsel is expected to increase as Senate and House committees prepare to open their own hearings into the fund-raising controversy in June or July.

In an interview last Sunday on NBC’s “Meet the Press,” Freeh described the investigation as “very extensive,” noting that it had grown to include 38 agents from an original complement of 25. Freeh acknowledged he and Reno had discussed the independent counsel issue over a period of time, but he steadfastly refused comment on his own view, saying it was up to the attorney general to make such a recommendation.

Reno most recently rejected the appointment of an independent counsel last month, the fourth time she has turned down calls for such a move.