Local Contractor Aids Dukakis Campaign

BOSTON--A Milton contractor who has received millions of dollars in low-interest state loans has become a major fundraiser for Gov. Michael S. Dukakis and other politicians, according to a published report.

Besides raising money for Dukakis, the Sunday edition of The Boston Herald reported, developer John Keith has raised tens of thousands of dollars from partners and business associates in the past year for at least three state legislators, a mayor and two members of the Massachusetts Housing Finance Agency (MHFA).

Since 1978, Keith has been a partner or general contractor in 10 developments that received a combined $44 million in low-cost financing from the MHFA.

Keith, who The Herald said appears to have broken no laws, appeared with Dukakis when the governor kicked off his presidential campaign April 29. Last year, he raised at least $45,000 for Dukakis by hosting a $500-a-ticket cocktail party for the governor and his wife at Keith's Milton home.

Robert Farmer, chief fundraiser for Dukakis' campaign, told the Herald he did not know specifically whom Keith has solicited.

"I don't see anything improper in reaching out to a network of friends and professionals," Farmer said.

Keith declined to be interviewed, The Herald reported, but his business partner, Eugene Kelly, told the newspaper they neither seek nor expect favors from state agencies in return for their political and financial backing.

"Yes, we've supported Dukakis because of his housing programs. Yes, we've taken advantage of them, and yes, we've made money." Kelly said. "But the projects work, and housing is created."

Farmer and MHFA officials said the Keith group gets no special treatment.

Last February, The Herald stated, Keith co-hosted a dinner party to help MHFA board member David Bartley pay off a $25,000 debt from his unsuccessful 1984 U.S. Senate campaign.

Bartley later told the newspaper he would return the $8,000 netted at the event to avoid any hint of a conflict.

Keith and business partners Kelly and William Duggan of Canton each contributed up to $500 to Taunton Mayor Richard Johnson's campaign committee last December. Johnson is one of the nine MHFA board members.

As recently as last month, the newspaper said, Keith asked other developers to buy $100 tickets to a late May fundraiser for state Rep. Kevin Fitzgerald (D-Boston). Fitzgerald is House chairman of the Housing and Urban Development committee. The Developers Council also turned out in force at a 1986 fundraiser for Fitzgerald's Senate housing committee counterpart, Sen. Frederick Berry (D-Peabody).

Kelly also told The Herald that he and his partners raised funds for other local officials in communities where they have developments pending. Among the officials, he said, are Fall River Mayor Carlton Viveiros and state Rep. Chester Suhoski.(D-Gardner).