October 27, 2008
A McCain-Palin/RNC ad claims Obama 'rewards his friends with your tax dollars.' It's off the mark.
An ad released jointly by the McCain-Palin campaign and the RNC claims Obama "rewards his friends with your tax dollars" and calls his actions "unethical." Some of what the ad says is false or misleading. Here are the facts:
The ad claims that Obama supporter and Chicago real estate developer Allison Davis received $20 million in taxpayer money. That's false. Davis didn't get this money. Instead, the federal grant went to the Chicago Housing Authority, replacing money it had already put forward for a mixed-income housing project on which Davis was a developer. The grant didn't go to Davis, nor did it help him pocket any additional funds.The RNC and McCain may consider Obama's actions to be "unethical"; that's a matter of opinion. But the fact is, as far as these three incidents are concerned, Obama has not been officially accused of any wrongdoing, and there's been no report that his actions are the subject of any official investigation.
The ad says Obama gave Tony Rezko $14 million of taxpayer money. That's misleading. It's true the housing project Rezko was working on cost $14 million in taxpayer cash. Rezko and his partner netted $855,000 in fees.
Obama worked to get Kenny Smith a $100,000 grant to build a park, which Smith later failed to complete. Smith has since caught the attention of the state attorney general. But, according to reports, Obama isn't under investigation for helping Smith get the grant.