Obama finds enemy on court bench in battle over election campaign funds



"Not true, not true" were the words Samuel Alito, a US Supreme Court justice, appeared to be mouthing when Barack Obama criticised a recent court decision during his State of the Union address. "With all due deference to separation of powers, last week the Supreme Court reversed a century of law that, I believe, will open the floodgates for special interests, including foreign corporations, to spend without limit in our elections," President Obama, who taught constitutional law at the University of Chicago, said on January 27.

As Democrats applauded, the six justices present were still, except for Mr Alito, who shook his head repeatedly, mouthing the words. His reaction became fodder for pundits and activists across the political spectrum and raised public awareness of a court decision that John White, a constitutional law professor at Catholic University in Washington, called an "overreach". The court in the 5-4 decision overturned two previous rulings and said corporations could use their money to run adverts supporting or opposing political candidates. They would still be prohibited from contributing funds directly to a candidate.

Mr Alito, who was appointed to the court by George W Bush, sided with the majority in a case that has many scholars, as well as the president and Mr White, questioning the ruling and the ramifications it could have. "I don't think American elections should be bankrolled by America's most powerful interests or, worse, by foreign entities," Mr Obama said in his speech. "They should be decided by the American people."

The court in Citizens United v Federal Election Commission did not rule specifically on foreign contributions as they were not differentiated from domestic ones, and there are restrictions on them that were not at issue in the case. Some scholars see the court's ruling as potentially opening the door to more foreign involvement in US campaigns and taking them out of the political parties' control.

Larry Sabato, director of the Center for Politics at the University of Virginia, said some of the reaction "might be overblown" while pointing out that "it isn't even easy to prohibit foreign companies from contributing. What's a foreign company in the global economy? Most big entities have American subsidiaries." Mr Sabato said that companies try to keep friends on both sides and he doubted that many corporations were "going to jump in with both feet".

"It's too upsetting and controversial for shareholders," he said. "There will be a few prominent cases of corporations entering the fray in specific cases this fall, and they will get a lot of attention." Mr White said that Ben Ginsburg, the former general counsel for the Republican National Committee, criticised the decision, saying "that it would deprive political parties the control of their messages during their campaigns".

"Ginsburg's point is very well taken," Mr White said. "While there has been a lot of focus as to which party would benefit from the decision, the long-term impact could very well be to weaken both parties." As for Mr Obama taking on the Supreme Court, both Mr Sabato and Adam Winkler, a constitutional law professor at the University of California, Los Angeles, said that although presidents do not often criticise the court in State of the Union addresses, it has happened before.

"Franklin D Roosevelt, for instance, castigated the Supreme Court in much harsher language for overturning his New Deal programmes," Mr Winkler said. "Every president likes to score points condemning 'activist judges'."  "Occasionally, presidents such as [Ronald] Reagan have made mention of decisions they hoped would be altered by legislation, but nothing as tough as Obama's words," Mr Sabato said.

Aside from Mr Alito's reaction, Mr Obama's harsh talk will probably not have any effect on the work of the court. "Life-tenured Supreme Court justices are not going to be cowed by public criticism of their decisions, even by the president. The president still has no power to punish the justices, most of whom probably figure they will be in office long after Obama is back in Illinois," Mr Winkler said.

Mr Obama does, however, have the ability to influence legislation and sign it into law, and the president urged Democrats and Republicans to pass a bill that, he said, helped correct some of the problems with the court decision. A US Senate committee is studying proposals that would reapply the restrictions on corporate campaign giving. "There are a number of options available to Congress," Mr Winkler said. "One reform that might stand would be to require shareholder consent for corporate political spending. Congress could pass a law banning corporate spending by firms with substantial foreign investors. Or it could ban corporate political spending by firms with government contracts."

Regardless of what happens with the issue in Congress, Mark Rozell, a public policy professor at George Mason University in Virginia, finds the State of the Union brouhaha between Mr Obama and the Supreme Court to be a natural outcome. "There is nothing in [the US] system of separated powers that renders improper criticism of one branch of government by another," he said. "Congress and the president criticise each other all time: why is the court above any such counterbalancing influence?

"The court is not above criticism or challenge by another branch of government. And considering this was a sweeping 5-4 decision that overturned years of congressional deliberations and legal precedents, why would anyone be surprised by public officials expressing their disagreement?" rpretorius@thenational.ae

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UAE currency: the story behind the money in your pockets
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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While you're here
Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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Stormy seas

Weather warnings show that Storm Eunice is soon to make landfall. The videographer and I are scrambling to return to the other side of the Channel before it does. As we race to the port of Calais, I see miles of wire fencing topped with barbed wire all around it, a silent ‘Keep Out’ sign for those who, unlike us, aren’t lucky enough to have the right to move freely and safely across borders.

We set sail on a giant ferry whose length dwarfs the dinghies migrants use by nearly a 100 times. Despite the windy rain lashing at the portholes, we arrive safely in Dover; grateful but acutely aware of the miserable conditions the people we’ve left behind are in and of the privilege of choice. 

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What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4

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