Saturday, April 13, 2002 1:32 p.m. EDT

Judicial Watch Cries Foul Over Clinton Hire

He's been impeached by Congress, disbarred till 2006 by the Arkansas Supreme Court, held in contempt of court, and recently pronounced by government prosecutors guilty of a felony punishable by up to five years in prison.

But that hasn't kept the California investment firm Yucaipa Companies from hiring disgraced ex-president Bill Clinton to help keep the state's giant pension fund operating in the black. And that has the Washington D.C.-based legal watchdog group Judicial Watch seeing red.

"No self-respecting pension fund manager would ever allow this crook to be able to run and manage and advise on its investments - or even be associated with a company that's involved with that," said Judicial Watch President Tom Fitton, during the group's Saturday radio broadcast.

"Notwithstanding the fact that he shouldn't have his hands on [pension fund money] because he's a criminal - the fact is, Clinton has no experience in investment advice," noted Judicial Watch Chairman Larry Klayman. "So, what is he doing there?"

The watchdog group announced Friday that it would commence an investigation into the questionable hire, noting that Yucaipa is owned by Clinton mega-donor Ron Burkle.

"Burkle has a long, sordid history with the Clinton fundraising machine," a JW press release issued Friday contended.

"He attended a trade mission to South Africa with the late Ron Brown in 1993. ... Burkle also participated in an illegal Clinton White House coffee fundraiser and 'participated' in Clinton's sleepover fundraising program run mainly out of the Lincoln Bedroom. Like Denise Rich, Burkle is a major donor to the Clinton Library, having donated in the neighborhood of $5 million to $10 million."

The California state pension fund, known as CalPERS, decided earlier this year to invest up to $560 million with Burkle's funds, Judicial Watch says.

CalPERS is the nation’s largest public pension fund, with assets totaling $147 billion. It provides retirement and health benefits to more than 1.2 million state and local public employees and their families.

Klayman and Fitton contend that by hiring Clinton, Burkle may be in violation of his fiduciary responsibility to California retirees because of Yucaipa's association with CalPERS.