Clinton Foundation Organization Will Not Refile Tax Returns Despite Mistakes

Organization did not comply with conflict-of-interest pledge

Hillary Clinton / AP
November 2, 2015

An organization created by the Clinton Foundation is not going to refile its tax returns after failing to comply with a conflict-of-interest pledge despite reportedly promising to do so when the mistakes were revealed earlier this year.

The Clinton Health Access Initiative (CHAI), which was spun off from the foundation in 2010, did not solicit a State Department ethics review of multiple contributions from foreign governments as mandated by a conflict-of-interest pledge established before Hillary Clinton assumed the role of secretary of state in 2009. A CHAI representative told Reuters in April that the organization was planning to refile its 2012 and 2013 tax returns.

However, Politico reported Monday that the same representative insists that the organization never promised to refile the forms and will not do so.

"Contrary to what was reported, CHAI has consistently stated that they would conduct a review process to determine whether the transposition errors required a refiling,"  CHAI spokeswoman Maura Daley stated. "After conducting the review, the transpositional errors made had no material impact and we do not believe a refiling is required."

The organization, which provides cheaper drugs for individuals with HIV worldwide, has previously refiled its returns for 2010 and 2011, having initially over-reported grants from governments by upwards of $100 million. CHAI received about $45 million in government grants in 2012 and $56 million in 2013, according to tax returns for those years.

The broader Clinton Foundation was also found in April to have made errors related to the conflict-of-interest pledge by failing to report funds it received from foreign and U.S. governments. The foundation said in April that it would have an external review conducted of its tax returns from 2010, 2011, and 2012 and "likely" refile forms.

"We have said that after a voluntary external review is completed we will likely refile forms for some years," then-acting CEO and senior Vice President Maura Pally said in an April statement shortly after Clinton announced her presidential bid.

"We made mistakes, as many organizations of our size do, but we are acting quickly to remedy them, and have taken steps to ensure they don’t happen in the future. We are committed to operating the foundation responsibly and effectively to continue the life-changing work that this philanthropy is doing every day."

Pally also reiterated the foundation’s "commitment to transparency."