DRUDGE REPORT

SAT OCT 10 1998 13:28:41 ET

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CONGRESSIONAL COMMITTEE SET TO CHARGE PRESIDENT AND FIRST LADY WITH POSSIBLE THEFT OF GOVERNMENT PROPERTY

**EXCLUSIVE DETAILS**

A CONGRESSIONAL SUBCOMMITTEE HAS WRITTEN A REPORT THAT WILL LEVEL NEW CHARGES AGAINST THE PRESIDENT AND THE FIRST LADY, ACCUSING THEM OF TAKING PART IN 'THEFT OF GOVERNMENT PROPERTY.'

THE DRUDGE REPORT HAS OBTAINED THE STUNNING REPORT -- AND THE MORE THAN 500-PAGES OF BACK UP MATERIAL -- OUTLINING THE COMMITTEE'S FINDINGS IN THE WHITE HOUSE DATABASE SCANDAL.

THE STORY INVOLVES A WHITE HOUSE DATABASE ALLEGEDLY USED AS A POLITICAL FUNDRAISING TOOL.

THE DATABASE, WHICH COST 1.7 MILLION IN TAX DOLLARS, INCLUDED RECORDS OF PEOPLE WHO ATTENDED WHITE HOUSE SOCIAL EVENTS, MEETINGS AND OTHER FUNCTIONS AS WELL AS THE CHRISTMAS CARD LIST.

THE REPORT ACCUSES THE WHITE HOUSE OF SHARING THE DATABASE WITH THE DEMOCRATIC NATIONAL COMMITTEE -- FOR THE DIRECT PURPOSES OF FUNDRAISING.

THE INVESTIGATIVE SUBCOMMITTEE OF THE HOUSE GOVERNMENT REFORM AND OVERSIGHT COMMITTEE HAS GATHERED HUNDREDS OF DOCUMENTS, CONDUCTED DOZENS OF DEPOSITIONS, THAT IT SAYS SHOWS A TRAIL.

THE DRUDGE REPORT HAS OBTAINED A CONFIDENTIAL SECRET MEMO FROM THE WOMAN WHO WAS CO-ORDINATING THE COMPUTER PROJECT, MARSHA SCOTT, CC'D TO THE FIRST LADY AND WHITE HOUSE BIG SHOTS BRUCE LINDSEY AND HAROLD ICKES.

THE MEMO OUTLINES THE PLAN TO SHARE THE INFORMATION WITH THE DNC.

THE FIRST LADY, IN HER OWN HANDWRITING, NOTES ON THE MEMO: "THIS SOUNDS PROMISING, PLEASE ADVISE."

[WHITE HOUSE STAFFER SCOTT WALKED OUT OF A DEPOSITION EXPLORING THE MATTER, ONE SENIOR CONGRESSIONAL SOURCE TOLD THE DRUDGE REPORT IN WASHINGTON ON FRIDAY.]

BUT SIX MONTHS PRIOR, A DEPUTY WHITE HOUSE LAWYER HAD WARNED THAT DATA FROM THE COMPUTER MAY BE PROVIDED TO SOURCES OUTSIDE THE FEDERAL GOVERNMENT 'ONLY FOR AUTHORIZED PURPOSES.'

DAVID WATKINS, THEN ASSISTANT TO THE PRESIDENT, SAID IN AN EYES ONLY, 'PRIVILEGED AND CONFIDENTIAL MEMO': "THE WHITE HOUSE DATABASE WILL BE GOVERNMENT PROPERTY AND CAN NOT BE USED BY A CAMPAIGN ENTITY."

THE REPORT THAT HAS NOT YET BEEN RELEASED, DETAILS A PATTERN OF EVIDENCE OBTAINED BY THE COMMITTEE THAT IMPLICATES THE 'PRESIDENT AND THE FIRST LADY IN THE POSSIBLE THEFT OF GOVERNMENT PROPERTY,' THE COMMITTEE CHARGES.

THE REPORT ACCUSES THE WHITE HOUSE OF LATER SHARING FILES FROM THE DATABASE WITH THE DNC -- EVEN USING WHITE HOUSE STAFFERS TO TRANSFER THE INFORMATION.

KEN STARR MAY NOT BE THE ONLY GAME IN TOWN. THE DRUDGE REPORT HAS LEARNED THAT THE DATABASE PROBE HAS ALREADY RESULTED IN A CRIMINAL REFERRAL TO THE JUSTICE DEPARTMENT INVOLVING A SENIOR WHITE HOUSE INSIDER.

IT IS NOT KNOWN IF THE DATABASE FINDINGS WILL BE INCORPORATED INTO THE HOUSE JUDICIARY COMMITTEE'S IMPEACHMENT INVESTIGATION.

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