Clinton Cash: The Untold Story of How and Why Foreign Governments and Businesses Helped Make Bill and Hillary Rich

by Peter Schweizer

  For Moscow, the approval was a major victory. Kiriyenko, the head of Rosatom, told Russian president Dmitry Medvedev that the United States would now become “a key market” for Rosatom.81 Because Uranium One also owned the rights to those large mines in Kazakhstan, uranium flows to Russia increased. As one Uranium One official put it in a corporate presentation, the company’s operations “facilitate substantial exports of uranium to Russia.”82

  In 2013 Rosatom announced plans to take 100 percent control of Uranium One. It didn’t even bother to ask the Obama administration for approval this time, because the transaction “involved the same parties” and the move did not technically “change the corporate structure of Uranium One.”83

  Pravda hailed the move with an over-the-top headline: “RUSSIAN NUCLEAR ENERGY CONQUERS THE WORLD.” Taking full control of Uranium One would “consolidate control over uranium assets in the former Soviet Union and pave the way for the expansion of access to resources in Australia and South Africa.”84 The Russian takeover of Uranium One yielded shareholders a premium price. Rosatom offered Telfer and other shareholders a 32 percent premium on the share price, yielding them millions.85

  In the fall of 2013 Rosatom passed operational control of the Bushehr nuclear reactor to Iran, and in September Vladimir Putin and Iranian president Hassan Rouhani announced that “Tehran and Moscow will cooperate in the future construction of a second nuclear power plant at Bushehr,” adding that “construction work is to start soon.”86

  Meanwhile, Uranium One made an audacious bid to mine for uranium on state land in Arizona, near the Grand Canyon. Using a shell corporation called Wate Mining, it proposed accessing the site through Navajo Nation lands. The company apparently hoped that the Navajo Nation wouldn’t notice who controlled the company, which was obscured on government forms. “The fact that the applicant failed to fully disclose ownership information does not sit well,” said the Navajo Nation Department of Justice.87 Plans for the mine have been suspended in light of protests.88

  Global deals involving the transfer of funds and nuclear technology were not limited to Russia. Another troubling transaction that occurred during the same period, while Hillary was in the Senate, involved characters representing India whose political interests appear to have been advanced by their friendship with the Clintons—accompanied in turn by large donations and payments.

  CHAPTER 4

  Indian Nukes

  HOW TO WIN A MEDAL BY CHANGING HILLARY’S MIND

  In May 1998 the government of India shook the world. With a series of five underground nuclear tests, the government set off a corresponding series of political explosions.

  Code-named Operation Shakti (the word means “strength” in Sanskrit), the 58th Engineer Regiment of the Indian Army took special measures to ensure that test preparations went undetected by the United States. With its bold act, India, in the words of one of the country’s leading commentators, “acquired de facto nuclear weapon status.”1

  For President Bill Clinton, the tests were a surprise slap in the face. Preventing the spread of nuclear weapons and technologies had been a Clinton administration priority. Early in his presidency he had launched “a personal initiative to halt, roll back and eliminate the nuclear [programs] of both India and Pakistan.”2 The tests were an embarrassing public dismissal of these efforts.

  Clinton was livid. He erupted in a “volcanic fit” when he heard the news, according to foreign policy adviser and longtime friend Strobe Talbott.3 Clinton took the tests as a personal affront, as well as a threat to the nuclear nonproliferation and test ban treaties he was pushing. He responded with “an intense effort to threaten international isolation” unless India signed the test ban treaty and “took other steps to reduce nuclear dangers.”4

  The nonproliferation treaty (NPT) entered into force in 1970 and recognized five countries as nuclear powers: the United States, the Soviet Union, Great Britain, France, and China. The NPT was designed to prevent any other country from attaining nuclear weapon status. If a country signed the treaty, it would be given the benefit of access to peaceful nuclear technology.

  Clinton chose to denounce India’s nuclear tests with Chinese president Jiang Zemin at his side. (This was particularly offensive to India, which considered Beijing a regional rival.) He also lent American support to United Nations Resolution 1172, which called on India to stop testing and required them to become parties to the NPT. But most importantly, Clinton imposed a series of restrictions on the export of US nuclear technologies to India with the express purpose of “keeping the lid on Indian nuclear and ballistic-missile technology.”5

  Clinton’s India sanctions were motivated by a strong belief in the importance of the NPT. Bill and Hillary Clinton have vigorously supported enforcing and extending the treaty. Both as first lady and then as a US senator, Hillary shared her husband’s fervent support for the NPT and the test ban treaty.6 In a 2007 article in Foreign Affairs, then senator Clinton declared, “As President, I will support efforts to supplement the Nuclear Nonproliferation Treaty.”7 Throughout the 2008 presidential campaign and during her confirmation as secretary of state, she voiced continued support for staunch nonproliferation efforts. “The Non-Proliferation Treaty is the cornerstone of the nonproliferation regime, and the United States must exercise the leadership needed to shore up the regime,” she said during her Senate confirmation hearings. As secretary of state she promised that the administration would “place great importance on strengthening the NPT and the nonproliferation regime in general . . . we must reinvigorate our commitment to the Nuclear Non-Proliferation Treaty (NPT) in order to prevent the spread of nuclear weapons and the potential for nuclear terrorism.”8

  India had never signed the nonproliferation treaty and was not about to. But as the Clinton administration passed and the Bush administration took office in January 2001, New Delhi began thinking about getting the sanctions lifted. Hoping to make that happen they hired expensive lobbyists and encouraged Indians in the United States to build rapport with both political parties. There were also a series of large payments made at pivotal moments to the Clinton machine. Some of these payments came in the form of lucrative speeches, paid for by Indian entities with a direct interest in having the sanctions lifted. Others came in the form of donations to both Hillary’s Senate campaigns and her presidential bid, by those who could legally do so. But mostly, they came as millions in donations to the Clinton Foundation.

  Tracing the real source of some of those millions would prove impossible, but their effect on the Clintons’ policy toward India seems apparent. In the end, both Bill, who initially imposed the sanctions against the Indian government, and Hillary, who supported that policy, played a vital role in getting them lifted. Shortly after the legislation passed, the Indian government granted one of its most prestigious civilian awards to a close Clinton family friend precisely because, as they saw it, he got Hillary to support the legislation.

  Sant Chatwal might not strike one as a consummate political insider. A Sikh from India with piercing brown eyes, Chatwal arrived in the United States in 1975 by way of Ethiopia and Canada. Earlier in his life, Chatwal served in the Indian military as a jet pilot. In the United States he set about building a commercial empire of Indian restaurants and hotels, primarily in New York City. First came the Bombay Palace restaurant chain, followed by the luxurious Hampshire Hotels. Chatwal is a study in contrasts—a globe-trotting businessman with celebrity friends and high-level political connections, yet an earthy Punjabi who still enjoys eating sarson ka saag. Even after more than thirty years in the United States, he remained a staunch Indian patriot, and still refers to India as “my motherland.”

  His deep friendship with the Clintons began with a mutual love for Indian cuisine. Bill first tasted Indian food at a political fundraiser held at Chatwal’s New York City restaurant, the Bombay Palace.9 But, as we will see, some savory financial transfers helped, too.

  Chatwal has always been exceedingly blun
t about how and why he steered money in an effort to influence events in Washington. “I used to spend money on senators and congressmen,” said Chatwal. While in 1988 that “investment” had been in Michael Dukakis, Chatwal “next started betting on various presidents” and “happened to click with Clinton.”10 The former governor of Arkansas was exceedingly thankful. Chatwal says Clinton offered him whatever post he wanted once he was elected president, but Chatwal said he simply wanted closer US-Indian relations. When Hillary ran for the Senate in 2000, Chatwal became one of her largest soft-money donors.11

  By the time Bill left the Oval Office in 2001, Chatwal was firmly in the Clintons’ inner circle. Bill appointed him a trustee of the Clinton Foundation, an appointment reserved only for longtime friends and large financial benefactors. Chatwal had lavished money on the Clintons, including hundreds of thousands in soft-money donations and millions in campaign funds raised, and he continued his largesse once Bill was a private citizen. Chatwal helped arrange for millions of dollars in lucrative speaking fees and steered additional millions to the Clinton Foundation.12 When Hillary ran for the Democratic presidential nomination in 2007, he was cochair of her presidential exploratory committee. He even received that most prized of gifts in the Clinton universe: an invitation to attend Chelsea’s wedding.

  Sant Chatwal’s son Vikram also became a Clinton benefactor. Widely known for his partying ways, Vikram became Hillary’s 2008 campaign bundler.13 Tooling around New York in an Aston Martin, he was known to run up large bar tabs and date everyone from Lindsay Lohan to various supermodels. Like his father a committed Sikh, he was known around town as the “Turban Cowboy.”

  Vikram considers the Clintons close friends. According to the New York Observer, “‘I know him [Bill Clinton] very well,’ he said of the former President. He added that the two men have often sat down and talked about books and Gandhi, as well as, he said, ‘women and models I’ve dated. He, like any man in the world, appreciates beauty.’”14

  When Vikram got married in India in 2006, Bill Clinton attended the wedding. Guests “were welcomed by dancing eunuchs, elephants painted entirely white and whitewashed men wearing angel wings on white horses.”15 The Clintons also attended Sant Chatwal’s other son’s wedding, a more calm affair at Tavern on the Green in New York in 2002.

  Perhaps not surprisingly, Sant Chatwal has a history of legal trouble involving financial transactions and has declared bankruptcy on at least one occasion. In 1995 he came under a cloud of legal suspicion concerning the bilking of millions from Indian banks. In the United States he was chased by the IRS and the New York State government for $30 million in unpaid taxes.16 In a visit to India with Clinton in May 2001, Chatwal was arrested and charged with defrauding the New York City branch of the Bank of India out of $9 million he borrowed in 1994. “He posted bail equivalent to $32,000, then fled India, boarding a flight to Vienna, despite an attempt by authorities to detain him” reported the New York Daily News.17

  In 1997 the Federal Deposit Insurance Corporation (FDIC) “sued Chatwal over his role as a director and a guarantor of unpaid loans at the failed First New York Bank for Business,” the Washington Post reported. Regulators were frustrated that Chatwal claimed he couldn’t repay the money (reported to be “in excess of $12 million”), despite the fact that he continued to live in a New York penthouse worth millions of dollars.18

  Three years later, with no settlement on the horizon, Chatwal entertained guests in his lavish penthouse for Hillary’s Senate campaign, raising $500,000.19 On December 18, 2000, just a few months after the fundraiser (while the Clintons were still in the White House), the FDIC “abruptly settled” the case against Chatwal, according to the Washington Post, allowing him to pay a mere $125,000 and walk away.

  The Chatwals undoubtedly enjoyed the perks and access that came with contributing and raising money for politicians like the Clintons. But what Sant Chatwal wanted for all that money extended far beyond the ordinary transactions that take place in Washington. He wanted to influence American policy toward India, particularly as it related to the sensitive area of nuclear technology. He openly admitted that he “spent tons of money, time and effort to make sure that the [Indian-US] nuclear deal goes through.”20 Some of that money was spent in India, where, according to a leaked diplomatic cable between the US embassy in Delhi and the US State Department, at least two ministers and several members of parliament were claimed to have been paid off, with reports of “two chests containing cash” ready for use as “pay-offs” to win support for the Indian-US nuke deal. Chatwal was alleged to be involved, but he maintains the allegation is baseless.21 What we do know is that millions were spent on cultivating the relationship with the Clintons, who not only received money directly through lucrative speaking deals, but also reaped millions in donations to the Clinton Foundation.

  On July 18, 2005, President George W. Bush and visiting Indian prime minister Manmohan Singh signed a letter of intent at the White House to allow India access to US nuclear technology. The agreement was part of a Bush administration policy to work closely with India to serve as a counterbalance to China. But the agreement required Congress to amend US law and make a special exception for India.

  The plan met immediate criticism on Capitol Hill. Democrats and Republicans both argued it would lead to greater nuclear proliferation by rewarding a country that had violated the NPT. Remarkably silent during this debate was Hillary Clinton, who not only sat on the Senate Armed Services Committee, but was also a senior member of the Subcommittee on Emerging Threats and Capabilities, which dealt specifically with nuclear proliferation issues.

  In September 2005 Bill Clinton flew on Frank Giustra’s plane from Uzbekistan to Lucknow, India. The capital city of the state of Uttar Pradesh, Lucknow was not Mumbai or any of India’s other cosmopolitan cities. Clinton’s visit set off an intense flurry of local interest and activity. The road from the airport to his hotel was “freshly tarred” for his arrival and party workers hung banners along the road praising Clinton’s visit. Along for the ride were Giustra, Doug Band, fundraiser Tim Phillips, and Sant Chatwal, who had made the arrangements.22

  Clinton and his companions checked into the Taj, a palatial hotel with graceful pillars on the banks of the Gomti River in the heart of the city’s business district. Bill’s six-person delegation had two entire floors to themselves and enjoyed a large feast with evening entertainment. Before the festivities began, Clinton joined Chatwal for a private meeting where he was introduced to an obscure member of the Indian parliament named Amar Singh.23

  Amar Singh has an easy swagger and a broad grin, marking a flamboyant manner and a combative attitude that has suited him well in the sharp-elbowed world of Indian politics. (He once got into a fistfight on the floor of the Indian parliament.) Heavyset, with thick glasses and thinning hair, Singh has another notable quality. His “access to big money is . . . legendary,” according to the Indian press.24

  Singh would be implicated in a number of financial and vote-buying scandals in Indian politics. In 2011 he was indicted on charges that he bought votes in parliament to secure the nuclear deal.25 A trial was never held.

  What Singh discussed with Clinton and Chatwal was never made public. They met for about an hour, but in that short span of time a close collaboration and friendship between the Indian politico and both of the Clintons began.

  After the meeting, the three men headed off for a big bash at the state chief minister’s bungalow. According to reports, the “bullet proof dining hall” was outfitted with twenty-six air conditioners and the event included 150 members of India’s elite—including Bollywood stars, industrialists, and politicians—who dined on delicacies while enjoying live performances.26 There were dancers and music from jazz fusion to a song titled “Sexy Rocksy Chicago Girl.”27

  Despite having only just met, Clinton and Singh offered immediate and enthusiastic praise for one another. Singh took to the podium to praise Clinton for his “immense love for In
dia” and proposed that he be granted Indian citizenship.28 Clinton then rose and talked about his love for India and addressed the host as “friend Amar Singh.” The former president then publicly extended an invitation for Singh to attend the Clinton Global Initiative (CGI) in New York in a few days as his guest.

  Clinton spent fifteen hours in Lucknow and then left. Opposition parties denounced the lavish party and criticized Singh and state officials for, in the words of one Indian newspaper, “hosting a mega bash for former U.S. President Bill Clinton at a time when hundreds were dying in the State due to Japanese encephalitis.”29 Singh was openly triumphant, explaining to the media how Clinton’s visit helped his party “score over its rivals.”30

  Clinton’s visit was a major coup for Singh. Asked later how he managed to get Clinton to visit his town, Singh said, “I would say he is a charming man and very kind to lesser mortals like me. I don’t see any other reason for him to take this trouble.”31

  Following their brief meeting Singh was immediately—and mysteriously—elevated in Clinton World. Singh took Bill Clinton up on his invitation to attend CGI in New York. The massive gabfest was attended by thousands of politicians, entrepreneurs, and so-called deep thinkers. During the Cold War, the Soviet hierarchy was reflected in its arrangement on Lenin’s Tomb during the annual May Day parade. In the Clinton universe, the hierarchy was reflected in the seating chart at CGI; it allowed people to figure out who was in and out of the Clinton orbit. In 2005 Singh not only attended the Global Initiative, he was granted a place at the head table. It was a remarkable elevation for a man who was in all other respects a complete unknown. As one Indian-American publication put it when they interviewed him after the Initiative meeting, Singh “could not explain why the Clintons gave him space at the head table.” He told them,