Review disputes Politico's report on Giuliani expenses

As mayor of New York City, Rudy Giuliani's office shifted money into obscure accounts to pay his travel expenses, but it is "not likely" the odd accounting methods were designed to hide trips to see a woman with whom he was having an extramarital affair, a New York Times review of city records concluded.

After examining the allegations published last month by The Politico, the Times said yesterday it reviewed city records that account for 93 percent of the $632,119 in out-of-city travel expenses for Giuliani's office from 1999 through 2001.

However, backup records for $40,000 of that total had not yet been located by the office of Mayor Michael Bloomberg, Giuliani's successor, the newspaper said.

Of the total, $350,781 was billed directly to the mayor's office and $281,338 was charged to obscure city agencies. In Giuliani's office account, $5,584 was for eight trips to the Hamptons in 1999 and 2000, the Times said, while $2,474 linked to the Hamptons trips was billed to "unusual accounts," less than 1 percent of all the expenses.

Judith Nathan, with whom Giuliani was romantically involved at the time, had an apartment in the Hamptons.

"This proves what we've been saying from the beginning - that all security expenses were appropriate, paid for properly and completely transparent," Randy Mastro, a former deputy mayor under Giuliani, said in a statement issued by Giuliani's presidential campaign.

The Politico's report on Nov. 28, just before a Republican debate, coincided with the start of a slide in the polls for Giuliani, who is floundering in Iowa, losing ground in New Hampshire, and now without a clear lead in national surveys.

A spokeswoman for The Politico did not respond to a request for comment.

BRIAN C. MOONEY

The presidential candidates are mostly giving the cold shoulder to Michigan, whose primary on Jan. 15 falls awkwardly between the first nomination contests in Iowa and New Hampshire and other key contests in South Carolina and Florida, leading up to Super Tuesday on Feb. 5.

But Mitt Romney, who is as close to a native son as there is in the field, is giving the state some love.

Starting yesterday, he is airing a new TV ad in which he says he feels Michigan's (economic) pain.

The ad begins with a photo of Romney and his father George, who was once the state's governor, then shows Romney at a MSNBC Republican debate in Dearborn, Mich., in October.

"Michigan is personal," says Romney, who was born and grew up in the Detroit suburbs. "It's inexcusable that Michigan is undergoing a one-state recession. High levels of unemployment, industry is shrinking here, jobs are going away.

He promises relief, saying: "There's a lot we can do to strengthen Michigan."

FOON RHEE

CONCORD, N.H. - Speaking at a chilly apple orchard yesterday, Hillary Clinton stressed her ability to work with Republicans as a young lawyer, first lady, and a US senator.

"Back when I was running in 2000, people wondered whether as a senator I could work with Republicans. And I believe that there were probably some bets taken on that," Clinton said.

"And the people who made those bets, at least against me, didn't know me very well, didn't know what I've done for 35 years, didn't follow the arc of my life and my career where what I have always been interested in is trying to make life better for people."

To back up her message of bipartisanship she mentioned her collaboration with Republican Senators Lindsey Graham and James Inhofe, and former House speaker Newt Gingrich.

Her trip to New Hampshire comes as Clinton is fiercely defending her lead over Barack Obama in the state while her support appears to be falling in Iowa.

"Give me the chance," she asked voters.

JAMES W. PINDELL

WASHINGTON - A liberal activist group that earlier targeted Hillary Clinton in a cable TV ad is now going after Barack Obama, depicting him as a bad Santa delivering coal to Iowa voters.

The ad sponsored by Democratic Courage criticizes Obama's votes in favor of a 2005 energy bill and a vote against an amendment that would have limited the amount of interest charged on any extension of credit to 30 percent.

Obama voted with 18 other Democrats and all of the Senate Republicans to defeat that amendment.

The ad also echoes criticism leveled by Clinton and John Edwards against Obama's healthcare plan, contending it would leave "millions out in the cold." Obama's health proposal does not include a requirement that workers obtain health insurance, like those of Clinton and Edwards.

Glenn Hurowtiz, president of Democratic Courage who supports Edwards, said the group has not endorsed a candidate but said Edwards is a "progressive, courageous and winning alternative."

ASSOCIATED PRESS

WASHINGTON - The wife of Democratic presidential candidate John Edwards said she had a hard time tracking down gifts made in the United States after she and her husband promised to avoid putting Chinese-made toys under their Christmas tree this year.

The Edwardses decided not to buy Chinese-made toys after millions were recalled this year for containing high levels of lead, a tough task given that roughly 80 percent of US playthings are made in China.

"We were careful to read the labels on everything we picked up - from toys and books to puzzles and dolls," she said in an e-mail response. She said she shopped online, used toy-rating websites as her guide, and bought most of the children's items at local stores.

"Even at the local toy stores, it was incredibly time-consuming to find anything made in the United States, particularly among the highly advertised toys on so many children's lists," she said.

ASSOCIATED PRESS