NEW ORLEANS, Oct 31 (Reuters) - The battle to represent hurricane-battered New Orleans in Congress should turn on which candidate can best help rebuild the city but the buzz is about how $90,000 in cold hard cash ended up in the Democratic incumbent's freezer.
Until the FBI found the money wrapped in foil as part of a sting operation in May, eight-term congressman William Jefferson seemed certain to be re-elected on Nov. 7 to represent Louisiana's 2nd district, much of which lay under water after Hurricane Katrina hit in late August 2005.
Jefferson denies wrongdoing but the investigation into whether he took bribes to promote business deals in Nigeria has spiced up the race and a slew of candidates, including from his own party, are opposing him. A run-off is likely.
The scandal also has complicated efforts by the Democrats to present Republicans as the party of corruption and it raises questions about whether Jefferson can keep voters loyal in a state with a history of tolerating graft in its politicians.
To win, Jefferson needs to mobilize supporters like the black residents of Guste Homes, a subsidized housing project for seniors, where he campaigned last week.
"It (loyalty) is essential," Jefferson told Reuters. "It keeps us tied together past everything and makes people doubt what other people say about you.
"They want to be patient to see how things come out. It's just a friendship almost. It's almost like home. I've been around so long. I've done something for everybody."
In his speech Jefferson avoided the preacher's style used by some politicians to rally black voters, listing his accomplishments in a businesslike tone in keeping with his background as a graduate of Harvard law school.
A string of residents later quoted the Bible to explain his legal difficulties, stressing the argument of his campaign ads that he is innocent until proven guilty.
Ink SpotTom Watson, pastor of a large black church in New Orleans who ran for mayor earlier in the year against incumbent Ray Nagin and lost, has endorsed Jefferson, as has Nagin.
To explain that, Watson drew a small black ink dot on a sheet of paper, asking: "What do you see? Many people will see the ink dot but I see the white paper."
Many voters noticed only the blemish on Jefferson's record that the investigation represented but they should take into account the whole picture.
"We (blacks) don't mind restoring people," Watson said. "A lot of people will say that the system is out to get him. They will say, 'He made a mistake but he is our guy.'"
White voters have largely abandoned Jefferson since May and that could prove key given the shifting demographics in a city that has lost half its population since Katrina hit, said analyst Bernie Pinsonat of Southern Media and Opinion, a consultancy firm.
Poor voters were more likely to tolerate alleged corruption in candidates they saw as fighting for their interests and better-off voters were less forgiving, Pinsonat said.
At a campaign event for Karen Carter, one of the Democrats opposing Jefferson, the candidate tried to take advantage of Jefferson's legal troubles.
Opinion polls give Jefferson a slight lead over the pack. Carter, former New Orleans counselor Troy Carter and state senator Derrick Shepherd are behind.
Carter says her record of reform of public education as a Louisiana state representative made her an ideal candidate to take on the city's challenges and she has received the endorsement of the state's Democratic Party. The state Democrats declined to endorse Jefferson, another blow to his re-election hopes.
"There is a cloud of suspicion there that causes the incumbent to be distracted," Carter said to applause at the rally. "The only way we are going to stand ourselves up is if we have credible and respected people in Congress."
Someone asked her afterward what she kept in her freezer.
"Pizza," she said.
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