Labor Secretary Cleared

Ending a two-year investigation, an independent counsel on Wednesday cleared Labor Secretary Alexis Herman of allegations that she solicited $250,000 in illegal campaign contributions. President Clinton said "she did not deserve what she's had to endure."

Independent Counsel Ralph Lancaster said he will not seek an indictment of Herman, who was accused by businessman Laurent Yene of having a deal to receive a 10 percent kickback for aiding clients of a firm co-owned by Vanessa Weaver, a close friend of Herman.

The sole indictment was against Singapore businessman Abdul Rahman for making $200,000 in illegal contributions to the Democratic Party through Weaver and her sister, Caryliss.

But Rahman is not in the United States so any action against him seems unlikely.

In addition, Lawrence Barcella, a lawyer for the Weavers, said he's been advised by Lancaster's office that the decision not to prosecute includes the sisters as well as Herman - a decision which signals an end to the probe.

Herman said she is "gratified personally and for my family that the independent counsel has terminated his investigation" while her lawyer, Neil Eggleston, said the secretary of labor "cooperated...in every way possible" with Lancaster.

"As I said at the start of this inquiry nearly two years ago, Secretary Herman did nothing wrong," Mr. Clinton said in a statement from the White House.

"But throughout it all, she was never deterred from her mission - making life better for America's working families. I am proud to call her my friend, and I am honored that she has been willing to work in this administration on behalf of working people everywhere."

Yene alleged that Rahman made political donations to help obtain a Federal Communications Commission license for a company to which he had ties. The company obtained an FCC license in 1997 to develop a telephone satellite system.

Herman had been introduced to Rahman by Vanessa Weaver on one or two occasions. Rahman was introduced to Clinton during the 1996 presidential campaign.

Herman, while running the White House Office of Public Liaison before becoming labor secretary, took Caryliss Weaver on a trade mission.