And now:Ish <[EMAIL PROTECTED]> writes:

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Date: Thu, 18 Mar 1999 10:05:24 EST
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Subject: Babbitt promises better management of Indian funds
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 From Victor's pechanga.net
Martha

http://www.spokane.net/news-story.asp?date=030499&ID=s539814&cat=section
.tribal_news

Babbitt promises better management of Indian trust funds
Tells Congress he needs bigger budget, new laws to do work

Philip Brasher - Associated Press

WASHINGTON -- Interior Secretary Bruce Babbitt, cited for contempt of 
court over his handling of $3 billion in Indian trust funds, promised 
lawmakers Wednesday he would ``do my best'' to resolve the matter.

Key Senate Republicans were skeptical and said they did not believe the 
Interior Department could manage the money properly.

Babbitt is the latest in a series of Interior secretaries to struggle 
with reconciling the funds, which were mismanaged for decades by the 
Bureau of Indian Affairs.

``There seems to be an institutional rot that does not go away,'' said 
Sen. Ben Nighthorse Campbell, chairman of the Senate Indian Affairs 
Committee.

Last week, a federal judge found Babbitt and Treasury Secretary Robert 
Rubin in contempt of court over their delay in producing documents 
sought by Indian account holders suing the government.

``I am ready to accept responsibility for what's happened in the past,'' 
Babbitt said at a joint hearing of Campbell's committee and Senate 
Energy and Natural Resources Committee. Cleaning up the funds would be 
his ``highest priority,'' he said.

There are 300,000 accounts held by individual Indians and 1,500 more 
tribal accounts worth $2.5 billion. The money includes lease revenue, 
royalties and court settlements.

Thousands of records are missing; others were stored in a warehouse that 
was allegedly infected for a time with a deadly rodent-borne virus.

The department has been unable to document $2.4 billion in transactions 
involving the tribal accounts over a 20-year period. Taxpayers likely 
will be asked to fund an eventual settlement with the account holders.

Babbitt has asked Congress for $100 million next year to work on the 
funds, a 150 percent increase from this year.

The Interior Department has straightened out about two-thirds of the 
accounts held by individuals, and a new accounting system will be in 
place by the end of the year, Babbitt said.

But Campbell, R-Colo., said he may introduce legislation to take the 
funds out of Babbitt's control. Sen. Frank Murkowski, chairman of the 
Senate Energy and Natural Resources Committee, said he would fight 
Babbitt's budget request because he no longer trusts the department to 
manage the funds.

``I wouldn't want to give them 10 cents. You might get seven back,'' 
said Murkowski, R-Alaska.

Babbitt has resisted proposals to give the money to a new government 
agency, and the idea also is controversial among tribal leaders.

Part of the department's difficulty in managing the accounts stems from 
the way Indian lands and mineral rights are divided into progressively 
smaller pieces with each generation.

Kevin Gover, assistant secretary for Indian affairs, receives 7 cents a 
year on a mineral interest that once belonged to his great-grandfather, 
a Pawnee Indian. The department says it costs $35 a year to handle such 
an account.

Congress twice has passed laws to consolidate such small interests in 
the hands of tribes, but the Supreme Court struck down both laws as 
unconstitutional. Babbitt pressed the senators to pass another law to 
deal with the problem.

Three tribes, including the Navajo Nation, simply have withdrawn their 
money from their government.

Others have declined to do so for various reasons. For one thing, the 
department does not necessarily know how much the tribes are due, said 
Edward Thomas, president of the Tlingit and Haida tribes in Alaska. 



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