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Billionaire industrialists David Koch (left) and his brother Charles have created a potent US political machine devoted to their vision of conservative ideals. Photos: Reuters, AP

Inside the Koch machine: The billionaire brothers who want to ‘save’ America

Five US Republican presidential candidates make pilgrimage to conference of donors who plan to spend almost US$1b by the end of 2016 election

The hundreds of wealthy conservatives gathered on the grand lawn of the St Regis Monarch Beach had already poured millions into helping build a network of nonprofits that is now one of the most potent forces in American politics.

But Charles Koch, the billionaire industrialist who leads their effort, wanted them to do more.

“Will you stand with us to help save our country?” Koch implored, standing on a riser as he addressed the attentive crowd. “It can’t be done without you and many, many others. So I pray that you will help us in this, I think, long-term, life-or-death struggle for our country.”

That cause, Koch told them, was eliminating obstacles to create a “truly free society”. He ticked off several pressing goals, such as reducing irresponsible government spending and doing away with corporate welfare, and lambasted big banks for their reliance on government bailouts.

Left unmentioned was the role the network will play in shaping the 2016 elections through its deeply funded political nonprofit groups, which do not have to disclose their donors. But the operation’s might was clear in the array of prominent GOP figures who flocked to Dana Point for the summer conference of Koch-bached groups. They included five presidential candidates and a group of US senators and governors.

“Your help over the last election cycle produced the numbers that we have today,” Senator Tim Scott of South Carolina told attendees Saturday night during an alfresco dinner held on one of the resort’s palm-tree-fringed lawns. “The major contributions and investments that you have made have played a major role.”

Twelve years after Koch hosted a gathering of like-minded libertarians frustrated by the growth of government, the political and policy network he and his brother David Koch helped set in motion is entering its most ambitious phase yet, with plans to spend US$889 million by the end of 2016.

Network-backed advocacy groups such as Americans for Prosperity are expanding their efforts to mobilise a national, data-driven ground operation. A super PAC supported by the Kochs and their allies plans to spend an estimated US$100 million this cycle.
And the donor network the brothers created — now overseen by Freedom Partners, a Virginia-based business chamber — continues to swell. More than 450 wealthy contributors attended the weekend’s conference, including 146 first-timers, officials said.
 
For the first time, news organizations were allowed in to cover the traditionally private confab, on the condition that the donors present not be named without their permission. The gathering — which took over much of the Spanish-style oceanfront resort — had the feel of a lavishly produced wedding held under tight security.

A meeting of donors to the Koch political network over the weekend included Republican lawmakers (from left to right): Senator Cory Gardner, Representative Jim Jordan, senators Mike Lee, Ben Sasse, Tim Scott and Dan Sullivan, as well as Freedom Partners President Marc Short. Photo: The Washington Post

Only registered attendees  were allowed down the drive of the resort, and men with earpieces hovered in the front lobby. Out on the grand lawn, waiters circulated with trays of chilled Evian through the crowd of men in blue sports coats and women in cocktail dresses. There were crystal chandeliers dangling from tall metal poles and meticulous arrangements of votive candles and cacti on the tables.

The move toward more openness comes after the Kochs have been vilified on the left by critics including Senate Minority Leader Harry Reid of Nevada who spent much of the 2014 elections castigating them as “shadowy billionaires”.

On Saturday, Charles Koch made a sly reference to his Democratic nemesis. Stumbling as he stepped up onto a riser, he quipped: “That was Harry Reid that was trying to trip me there. I didn’t see him, but I know he’s watching.”

While the Freedom Partners network is not expected to get behind a single candidate in the crowded GOP primary, it is helping elevate a select group through invitations to network-backed events.

Former Florida Governor Jeb Bush and Texas Senator Ted Cruz were due to speak Sunday evening. Florida Senator Marcio Rubio, Wisconsin Governor Scott Walker and former technology executive Carly Fiorina took questions on Saturday.

Walker, who received strong network backing in his fight with labor unions in Wisconsin, called himself “proud” to talk with the group.

“I wish the whole world could see what goes on,” he said. “So many of you here aren’t here because of any interest on behalf of your personal finances. You’re here because you love America.”

 

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