US COMPANIES who make donations to political parties are not in breach of the law, according to United States Consul General Gregory Slayton.

And Mr. Slayton also dismissed Opposition concerns that foreign donors could be buying political influence on the island, saying that Premier Ewart Brown "appreciates the importance of ethical and wise leadership".

Mr. Slayton spoke out after the United Bermuda Party's Grant Gibbons warned of possible 'pay-to-play' deals being brokered between Government and US donors. Speaking following a heated debate in the House of Assembly last Friday, Dr. Gibbons said: "Premier Brown boasted on Friday night that he had access to sources of great wealth in the United States that would ensure that the Progressive Labour Party would remain in power for a long time.

"Every Bermudian should be concerned that their current PLP Government is seeking US-based donors to influence a political process that should remain local. In fact, it is possible that foreign donations of this sort violate the US Foreign Corrupt Practices Act, which prohibits US companies from bribing foreign government officials or foreign political parties to obtain or retain business."

But yesterday Mr. Slayton said such donations, although illegal in the US, were acceptable in Bermuda.

And he praised the Premier for "upholding the highest ethical standards for his government"

"It's our understanding that under Bermuda law political parties are allowed to approach non-Bermudians and all types of businesses to garner financial support for their political efforts," Mr. Slayton said.

"At the same time I am 100 per cent sure that my friend Dr. Brown appreciates the importance of ethical and wise leadership ? and is committed to providing just that for Bermuda.

I am confident that he is merely trying to work within Bermuda law to help his party. At the same time I know that he is firmly committed to maintaining Bermuda's sterling reputation in the world.

"He and I have spoken about the importance of good governance and I believe that he is committed to upholding the highest ethical standards for his government. He clearly understands the importance of Bermuda's excellent reputation among the international business community worldwide, which is one of the cornerstones of Bermuda's tremendous economic success.

"And I do believe that he is committed to bolstering and burnishing Bermuda's already strong reputation for honesty, integrity and transparency.

"US law on this subject is quite different than Bermuda law. In the US it is illegal for anyone who is not a US citizen to make a political donation. It is also illegal for US corporations ? or any corporation ? to give political contributions or to even be solicited for such ? another significant difference between Bermuda and the US."

Mr. Slayton added that there were safety checks in place under the US Foreign Corrupt Practices Act (FCPA), which allowed for any concerned United States company, or any company doing business in the US, to receive an advance ruling from the US Attorney General on the legality or illegality of any requested donation under the FCPA.

"It's important that everything is handled clearly, cleanly and above board," he said.

"That is why our FCPA applies to all US companies and all companies doing business in the US, and why it applies worldwide. In fact, within the FCPA there is a provision that encourages any US company that has a question to put the case in writing to the US Attorney General.

"Under the FCPA, the Attorney General's office must get back to the requestor within 30 days of receipt of the request either with an advance ruling on that case, or with a request for more information.

"What is important to everyone is honesty, clarity and transparency, because these are the hallmarks of the rule of law which is the basis for all free societies everywhere."