The Wall Street Journal-20080214-Campaign -08- Bill Clinton-s Complex Charities- Former President Works Global Ties- Giustra Relations

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Campaign '08: Bill Clinton's Complex Charities; Former President Works Global Ties; Giustra Relations

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In September 2005, Bill Clinton and his aides staged a three-day philanthropic event at which they gathered hundreds of millions of dollars of commitments from the rich and powerful to help the world's poor. Mr. Clinton's staff also found time to help a wealthy Canadian businessman named Frank Giustra.

At the gathering, a Clinton aide arranged for Mr. Giustra to be introduced to Colombian President Alvaro Uribe, says a person familiar with the matter. The men put up two chairs in a hallway and talked for about 10 minutes, says this person, who adds that Mr. Uribe was impressed with the Canadian businessman's knowledge of his country. Later in the day, a top Clinton aide told Mr. Giustra that he had heard the meeting with Mr. Uribe went well, this person says.

Since then, Mr. Giustra has been in a number of meetings with Mr. Uribe, including two last year that also involved Mr. Clinton, said a spokesman for the Colombian leader. The spokesman said Mr. Uribe has discussed business matters with Mr. Giustra, but never in meetings attended by Mr. Clinton. He added that Mr. Giustra didn't receive any special treatment because of his Clinton connection.

Last year, a Canadian company that Mr. Giustra's firm was advising acquired interests in Colombian oil fields that were operated in conjunction with that nation's state petroleum company.

In the past three years Mr. Giustra has become a friend and traveling companion of Mr. Clinton and pledged more than $130 million to the former president's philanthropic activities.

The relationship with Mr. Giustra is part of a sprawling business and charitable empire that the former president has created. That empire is attracting more scrutiny as Sen. Hillary Clinton vies with Sen. Barack Obama for the Democratic presidential nomination.

Mr. Clinton is in the midst of unwinding certain business interests that could complicate his wife's campaign. He is negotiating to end his business relationship with Yucaipa Cos., the investment firm run by his friend and political supporter, Los Angeles billionaire Ron Burkle. The arrangement also includes a partnership connection with the ruler of Dubai. By ending the deal, Mr. Clinton stands to walk away from Yucaipa with about $20 million, as reported in a recent Wall Street Journal story.

Mr. Giustra says there isn't any overlap between his business activities and his support for Mr. Clinton's charitable work. He says his overseas relationships with foreign officials long predate his Clinton connection. "Have I used my relationship with President Clinton to benefit me or my business? No," said Mr. Giustra in a written reply to questions. "Have world leaders bent over backwards for me because I've accompanied President Clinton on [philanthropic] visits . . . . . ? No. Do I resent any implication to the contrary? You bet."

A Clinton spokesman referred specific questions about Mr. Uribe and others to Mr. Giustra, who didn't respond to those questions. The Clinton spokesman, in a written response, said the former president works hard to bring business leaders, government officials and others together to create partnerships "that advance the public good." He added that "increasing the profits of business and increasing the efficiency of charitable enterprises can go hand-in-hand."

Mr. Clinton mainly carries out his charitable work through the Clinton Foundation, which has raised hundreds of millions of dollars from individuals, corporations and foreign governments to attack such global problems as poverty, hunger and disease and to build the Clinton presidential library in Little Rock, Ark.

The foundation's work has offered ample opportunity for business and philanthropy to mix, say people familiar with it. On his frequent overseas trips in recent years, Mr. Clinton has often borrowed the private jets of wealthy donors -- bringing along the donor as well as other backers of his charity work. With his entourage in tow, Mr. Clinton makes his philanthropic rounds, often meeting with top government leaders.

The three-year-old Clinton Global Initiative, an offshoot of his foundation, is another venue where businesspeople can interact with political leaders. Each September, Mr. Clinton presides over a three- day invitation-only gathering in New York for about 1,000 people to discuss world problems and garner commitments to help solve them. The initiative has racked up billions of dollars in commitments and attracts some of the world's richest and most powerful people. Mr. Giustra has been a member of the initiative since its inception in 2005.

Messrs. Clinton and Giustra recently attracted media attention because of a 2005 trip to Kazakhstan where they met with Kazakh President Nursultan Nazarbayev. A few days after that trip, as reported by Newsweek and the New York Times, a Giustra-connected company signed a major uranium deal in Kazakhstan.

A Clinton spokesman told reporters that the Kazakhstan trip was part of the former president's philanthropic activities and not aimed at advancing Mr. Giustra's economic interests. Mr. Giustra, whose jet was used for the trip, came along to get a first-hand look at some of the charitable efforts, the spokesman added.

Among Mr. Giustra's business dealings in Colombia: Last May, a publicly traded Vancouver mining company, now operating under the name Pacific Rubiales Energy Corp., spent more than $250 million to purchase control of a company that operated Colombian oil fields in conjunction with Ecopetrol S.A., the national oil company. In the past year, Pacific Rubiales has also signed a pipeline deal with Ecopetrol and been invited by the Colombian national petroleum agency to do further oil-development work in the country.

Endeavour Financial, where Mr. Giustra served as chairman, was adviser to the Vancouver-based company that made the Colombian purchase last year. This purchase was among the matters Mr. Giustra has discussed with President Uribe, says a person familiar with the matter. Endeavour received more than two million shares of stock for its role, according to Canadian regulatory filings. Last February, Pacific Rubiales stock traded on the Toronto Venture Exchange for about 30 cents a share. By October it had gone as high as $1.75 a share. It currently trades at about $1.25 a share.

A Pacific Rubiales spokeswoman declined to comment on the company's dealings with Mr. Giustra.

Endeavour has been involved in investment banking and advisory work, primarily for mining and minerals companies. Mr. Giustra made his fortune in recent years by getting stock in a number of such companies.

Last June, Mr. Giustra publicly pledged $100 million to the Clinton- Giustra Sustainable Growth Initiative to fight poverty in countries around the world. A top Clinton foreign-policy adviser has moved to Vancouver to work on the effort. Other corporate commitments included a more than $3 million pledge from Pacific Rubiales.

Also in June, Mr. Clinton attended a New York dinner party with the Colombian president and accepted an award from him. The event was considered a significant show of support because it came at a time when Mr. Uribe's government faced increasing criticism in Congress due to allegations that Colombian officials had been working with paramilitary death squads.

Messrs. Clinton and Giustra joined with Mr. Uribe and others at a meeting in February 2007 at Mr. Clinton's home in Chappaqua, N.Y. A month later, the three met again in Cartagena, Colombia, in connection with an event honoring author Gabriel Garcia Marquez. The Uribe spokesman said that when the Colombian leader meets with Mr. Clinton, they discuss topics such as foreign-policy issues and the work of the Clinton Foundation.

Mr. Giustra and Mr. Uribe also met last October, when the Canadian visited the president's Bogota office. The Uribe spokesman said Mr. Giustra has been seeking help on a project to export coal through the port at Cartagena. Mr. Uribe has told Mr. Giustra that the location he wanted for the port project wasn't feasible but promised that his government would look for a more appropriate site, the spokesman said.

Meanwhile, Mr. Giustra, in his written responses, said that on March 1 the Clinton-Giustra antipoverty initiative will announce its first round of projects, including one in Colombia. "I have pledged all of my personal profits" from the Rubiales deal "to the local work" of the Clinton-Giustra initiative, wrote Mr. Giustra.

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Bill Clinton's Philanthropic World

The William J. Clinton Foundation oversees such projects as:

-- Clinton Foundation HIV/AIDS Initiative: since 2002 has helped bring

treatment to hundreds of thousands of people in developing countries.

-- Clinton Global Initiative: since 2005 has garnered billions of dollars

in commitments to attack poverty, hunger and disease.

-- Clinton-Hunter Development Initiative: aimed at stimulating economic

growth in Africa with a $100 million commitment from Scottish businessman Tom

Hunter.

-- Clinton-Giustra Sustainable Growth Initiative: With an initial $100

million commitment from Canadian businessman Frank Giustra, aims at attacking

poverty in developing world.

Source: www.clintonfoundation.org