Washington - The former chairman of the Quaker Oats Co. said he saw nothing wrong with giving then-Agriculture Secretary Mike Espy tickets to a Chicago Bulls playoff game, even though the department regulated part of his company's business.
Testifying at Espy's federal corruption trial, William Smithburg said someone from Espy's office called his secretary a day before the June 18, 1993, game and asked for tickets. Two of his own season tickets were available, and he told his secretary to give them to Espy, Smithburg said.
"I definitely did not give him the tickets because of any official action," Espy might take as head of the department, Smithburg testified. "I was not trying to influence him."
Under questioning by a prosecutor for Independent Counsel Donald Smaltz, Smithburg did allow that Espy's job title was one reason to do him the favor.
"The fact that he was secretary of agriculture and in that position was one of the factors," Smithburg said.
Espy is accused of taking about $35,000 in illegal gifts from lobbyists or companies with business before his department. He pleaded innocent to 38 charges of taking gifts and trying to cover it up.
He faces a minimum of three years in prison if convicted of the most serious charges. His trial is expected to last through Thanksgiving.
Now retired, Smithburg was Chicago-based Quaker's top executive in 1993 and 1994, when Espy was President Clinton's first agriculture secretary.
At the time, three of Quaker Oats' product lines contained meat and were thus regulated by the Agriculture Department, which oversees meat inspection. The three lines made up about 3% of the $6 billion cereal company's business.
Smithburg testified he met Espy twice _ once at a dinner in Washington and again in passing at the crowded National Basketball Association playoff game in Chicago against the Phoenix Suns.
Espy and Smithburg did not sit together at the game _ Smithburg was in better seats owned by Quaker Oats. Espy probably thanked him for the tickets, Smithburg said, although he cannot recall details of their brief conversation that night.
"I did not feel it was improper under the circumstances," Smithburg said. "I met him, I had heard of him, I was impressed with him," and the tickets were, miraculously, still up for grabs a day before a much-anticipated game, Smithburg said.
There was no talk of reimbursement at the time, Smithburg said.
Espy later sent Smithburg a check for $90 for the tickets, after newspaper accounts of his dealings with companies regulated by the Agriculture Department. Espy resigned at the end of 1994, after Smaltz began his investigation.
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