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Treasury rejects Farrakhan's bid to get Libyan money
August 28, 1996
Web posted at: 8:30 p.m. EDT
From Correspondent Steve Hurst
WASHINGTON (CNN) -- The Treasury Department Wednesday rejected the application of Nation of Islam leader Louis Farrakhan to receive $1 billion pledged by Libyan leader Moammar Gadhafi.
Farrakhan had sought a waiver of U.S. law forbidding the transfer of such funds from Libya. Gadhafi's regime is one of seven on Washington's list of nations that sponsor terrorism.
"The United States is convinced that the government of Libya remains a strong supporter of terrorist groups," the Treasury Department said in a letter to Farrakhan's attorneys.
The letter said the gift would violate the January 1986 Executive Order, which freezes Libyan assets in the U.S. and prohibits transfers of funds "even when those transfers are made for charitable, religious or humanitarian purposes."
Gadhafi's gift also violates the Antiterrorism Act of 1996, which went into effect just last week and specifically outlaws "financial transactions" with countries designated by the State Department as supporting international terrorism.
Finally, the letter said it would be "inconsistent with current U.S. foreign policy to authorize" the donation.
The Clinton administration's refusal to allow the gift could prompt a constitutional court fight. Sources told CNN they expect Farrakhan to sue the United States over the matter.
"Both the act and the regulations raise some serious constitutional questions," said Nation of Islam attorney Lewis Myers.
"Invariably, they touch on the right of the freedom of association and freedom of religion, the freedom of speech."
Farrakhan left Chicago Wednesday for Libya to accept a $250,000 honorarium for the "Gadhafi Prize for Human Rights for 1996," a check not related to the promised $1 billion. That gift, too, was banned by Treasury's decision.
"We are not terrorists," Farrakhan said before leaving. "We are not trying to do anything against the good of America. What we want to do is good for our people and ultimately the good for our nation."
Farrakhan has already warned he would mobilize his
followers if his petition were rejected. He said
Tuesday that the money would be put to humanitarian uses,
voter registration and improving the economic lot of
African-Americans. (323K AIFF or WAV sound) 
Rep.Pete King, a New York Republican, has called
on Secretary of State Warren Christopher to revoke
Farrakhan's passport. (272K AIFF or WAV sound)
But State Department officials said there were no grounds to revoke the passport. Farrakhan technically could not be held in violation of travel bans on Libya if officials in that country do not stamp his passport.
Gadhafi has been quoted as saying that the donation to Farrakhan would enable Libya to make inroads into the United States.
The Associated Press contributed to this report.
Related stories:
- Farrakhan continues to defy critics - February 26, 1996
- Minister Farrakhan challenges black men - October 17, 1995
- CNN Special Section: The Million Man March
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