Whitewater controversy Whitewater controversy The Whitewater controversy, Whitewater scandal, or simply Whitewater, was an American political controversy of the 1990s. It began with an investigation into the real estate investments of Bill and Hillary Clinton and their associates, Jim McDougal and Susan McDougal, in the Whitewater Development Corporation. This failed business venture was incorporated in 1979 with the purpose of developing vacation properties on land along the White River near Flippin, Arkansas. A March 1992 "New York Times" article published during the 1992 U.S. presidential campaign reported that the Clintons, then governor and first lady of Arkansas, had invested and lost money
Whitewater controversy mentioned Whitewater only in passing; Clinton friend and advisor, Vernon Jordan, had tried to help Webster Hubbell financially with "no-show" consulting contracts while he was under pressure to cooperate with the Whitewater investigations. Indeed, it was on this basis that Starr took on the Lewinsky investigation, under the umbrella of the Whitewater Independent Counsel mandate. There was much acrimony from the most fervent critics of the Clintons, after the release of the Starr report on the Foster matter and after Starr's departure and return to the case. The death of Foster had been the source of many conspiracy theories. Christopher