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Total Lack of Trust
By Kelly Patricia O’Meara
[EMAIL PROTECTED]
More than a century ago, a trust fund was set up to generate income for
American Indians in return for use of their property.  Today they claim that
the fund’s trustees – the U.S. departments of the Interior and Treasury –
have bilked them out of $10 billion-plus.
A gang of politicians and bureaucrats may have stolen $10 billion from the
poorest Americans, and a growing number of people think nobody gives a
damn. The official excuses for hiding federal records proving this huge theft
include claims that a computer system, which to date has cost taxpayers
tens of millions of dollars, does not function properly; that paper records
cannot be brought to court from government warehouses because of
contamination by the rodent-borne hantavirus; and that relevant documents
and ledgers known to be in government possession were destroyed variously
in suspicious fires and/or intentionally shredded.
       All of which is why American Indians are not receiving income earned on
their property from a trust fund begun more than 100 years ago under the
General Allotment Act of 1887, which historical documents confirm was
intended to eliminate the Indian way of life and provide financial
independence to integrate them into the mainstream culture — an Indian
version of the Reconstruction’s 40 acres and a mule. To fund this adventure
in cultural eugenics more than 11 million acres of land were divided among
the individual American Indians but placed in trust to the federal government,
with income generated from the leasing of oil, mineral, timber or grazing
rights to be paid from the trust to the Indians.
       The authorities of that era did not think that American Indians had the
education or experience to manage these properties or the substantial
monies that would come from leasing their lands. Congress decided to have
the monies held in a trust to be overseen by various federal agencies,
including the departments of the Interior and Treasury. In theory, monies
generated from the leased lands would be distributed to the landholders,
making the Indians financially independent. In practice, today’s 300,000
American Indians and their families claim to have been bilked out of an
estimated $10 billion. No one denies that the money is unaccounted for.
Finding it is another matter.
       Eloise Cobell, a banker from the Blackfeet Reservation in northwest
Montana, and four other American Indians filed a class-action lawsuit against
the United States in 1996. They sought to account for and recover all the
monies due and owing from the revenues of the leased lands, based on
historical records and data kept throughout the years. But the trustees —
the departments of the Interior and Treasury — have been unable and/or
unwilling to produce the requested records, going to bizarre extremes to
withhold information confirming the huge Indian claims.
       Washington lawyer Dennis Gingold, the lead attorney on the case since
it was filed, tells Insight: “We’re talking about tens of billions of dollars that
cannot be accounted for — especially disturbing given the fact that the trust
was forced on the Native Americans at gunpoint. The government told the
Indians, ‘We’re gonna take care of your property.’ It’s the equivalent of me
pointing a gun at your head and saying to you today, ‘Give me the keys to
your house and your car and your bank-account information. You will remain
the beneficial owner, so don’t worry because I’m going to handle this
exclusively in your best interest.’”
       According to Gingold, “The government has handled this lawsuit as
badly as they’ve managed the trust account — with total disdain toward the
beneficiaries. There is no single situation that comes close to this one in
which a trustee has so abused the trust beneficiaries for so many years.”
       How bad is it? That depends on who is being asked. Take for example
the Department of the Interior (DOI), whose job it is to maintain the historical
data on the trust lands, ensure accurate accounting and then turn any
monies collected from the leased land over to the Treasury Department.
Because of shoddy record-keeping and a financial-management system that
is not integrated, the DOI explained to the court, it cannot provide data for an
audit.
       In 1991, the General Accounting Office (GAO) reported that the DOI’s
Bureau of Indian Affairs (BIA) had spent more than $21 million during a five-
year period attempting to reconcile and certify Indian trust accounts. A
decade later there still has been no reconciliation of these trust accounts
despite the expenditure of an estimated $30 million to $40 million on a
computerized financial-management scheme called the Trust Asset
Accounting Management System (TAAMS), which doesn’t work. But, when
and if TAAMS ever is fully implemented, it is supposed to integrate all the
various “modules” of the trust account.
       Not to worry. Assistant Secretary of Indian Affairs Neal McCaleb tells
Insight, that “We’re pretty close with TAAMS. The system is an aggregation
of several different modules like the land-title records. That’s in good shape.
Another is the realty module, which contains transactions of energy, mineral
severance, and agriculture and timber leases that were integrated with the
land-records module — which generated a user test with a 24 percent error
rate. That doesn’t sound good and it’s not, but that was the first time we tried
to marry those two systems.”
       You see, McCaleb explains, “It’s a complex system and we haven’t
worked out all of the kinks. But [Interior] Secretary [Gale] Norton has
directed that we have an evaluation of the progress of the TAAMS by an
expert third party. EDS [Electronic Data Systems Corp.] will provide a
preliminary report of that evaluation sometime in September. We’ve hired
them to do an objective and dispassionate review of the progress of TAAMS.
We know what needs to be done, we know how to do it and we just need
some time. Secretary Norton has taken a very definitive and effective action
in this area, and our hope is that TAAMS delivers all the services and uses
our users need and want. We just got our hands around this in March, and
there’s a lot to do. With new hands on board we’re trying to get the slack out
and the sails trimmed and bring this ship into port. We’re gonna fix the
problem instead of fight the litigation.”
       Back on the reservation they’re thinking about a war party of the kind
that dealt with tea aboard a British ship in the port of Boston, and they’re not
buying the DOI’s explanation that computer problems are, or could be,
responsible for the theft or disappearance of billions in revenue generated
from land leases. “This isn’t about computer problems,” Cobell explains. “It’s
about lying, mismanagement and corruption — and I’m up in arms about it. It
really just seems that no one gives a damn. I think it’s time that people start
marching to jail for this kind of behavior. It is certainly time for journalists to
let everyone know what is going on in this case.”
       Cobell knows who she would like to march to jail. “Former interior
secretary Bruce Babbitt and former treasury secretary Robert Rubin,” the
Blackfoot banker notes, “all had their fingers in it and … got away with lying
to [U.S. District] Judge Royce Lamberth about crimes that their agencies got
away with for 100-plus years. They’re smart men, and they had 35 lawyers to
our five. Unless something drastic is done — like personal sanctions — their
successors are going to continue such behavior. I think it’s time to haul them
off to jail. … They had no problem figuring how much was owed to the
Holocaust victims. They can figure out this.”
       Cobell explains, “The government has maps of who the land belongs to,
and they would just have to work forward. All you have to do is go back to
the original land allotments, but the government is trying to cover up its
liability, and there is a lot of the land that has gone into non-Indian ownership
without records of how it happened. The government is full of crooks and
liars, and that’s what the headlines should read.” Harsh words, and she isn’t
at all satisfied that the Bush administration is doing any better than the
Clinton people did.
       But according to Paul Moorehead, minority staff director and chief
counsel on the Senate Indian Affairs Committee, “The Indians’ perspective of
the administration is that we’ve done little more than shuffle the chairs on the
deck of the Titanic. I understand their position. They’ve been through a lot.
But everything for this administration has been accelerated, and they’ve had
little time to get things going.”
       While Moorehead thinks the Bush team should be given more time to
get to the bottom of these long-standing problems, he is well-aware that the
Clinton team did everything possible to obstruct the lawsuit. He tells Insight,
“At one point it became the theater of the absurd. There were four documents
found out West, for instance, that were said to be covered with a rodent virus
and therefore off-limits, so no staff would handle them and that’s why we
don’t know how much money is owed. Then, in the thick of it, when
questions were being posed about the documents — like where they are, if
they are secure, whether the government was doing anything in a
coordinated way — that’s when the fire occurred at the Suitland, Md.,
[National Archives] records facility, and it became sort of an X-Files thing. It
went from being a kind of Keystone Kops incompetence to something more
nefarious.”
       Moorehead says that, before Vermont Sen. Jim Jeffords’ switch gave
control of the Senate to the Democrats, Sen. Ben Nighthorse Campbell (R-
Colo.) was chairman of the Senate Indian Affairs Committee and “was riding
herd on the trust-funds issue. Every conceivable angle was looked at —
should we take the matter out of DOI altogether; should we bring more
discipline to private investment of Indian trust funds? Innumerable bills were
introduced, circulated, and I can’t tell you how many hearings were held. I
don’t think there is a more frustrated man than Senator Campbell about what
the Babbitt administration [at DOI] was doing with those trust funds.”
       Gingold, lead attorney for the American Indians in the class-action
lawsuit, argues that it is the landowners — the Indians — who are most
frustrated. “We’ve been in this case for five years,” Gingold explains, “and I’ve
been practicing law for 27 years. Never have I seen anything like this.
Records are destroyed at DOI at the drop of a hat, and I’ve never seen a
case where lawyers and litigants regularly lie to the court — and not just the
trial court but also the circuit court. Meanwhile, they regularly lie to Congress
and they always lie to the trust beneficiaries.”
       Just warming up, Gingold notes that not only has evidence been
shredded while under subpoena but that “the special master himself had to
save documents off the shredder at one DOI facility. Documents have been
deleted on electronic systems, backup tapes have been lost in the
thousands and tapes have been destroyed at Treasury too. But what is
typical in this litigation is that lower-ranking people always get blamed for the
wrongdoing. The people who make the decision and approve the conduct
walk away.”
       For example, the furious Gingold declares, “Take the documents that
were destroyed during the contempt trial. On Nov. 23 and 24, 1998, the court
held a hearing dealing with the production-of-documents request under the
order which ultimately was found to be violated and was the basis for the
contempt finding for former Treasury secretary Robert Rubin and former DOI
secretary Bruce Babbitt. On Nov. 23, Treasury started destroying
documents. At the end of January the contempt trial concluded and the
destruction of the documents stopped. I believe in coincidences. I believe in
the tooth fairy and Santa Claus. I just don’t believe this was a coincidence.”
       Continuing, Gingold says, “This is a cover-up, it’s a whitewash, and it
ignores the tough questions. I wish I had the answers to why it’s happening.
We’ve heard lots of things that we can’t corroborate. We’ve heard from former
and present BIA officials that Indian trust monies have been used to help bail
out the Chrysler Corporation. We’ve heard the money was used to bail out
Penn Central and the City of New York. … The money that has been earned
on those lands is substantial, so where did it go? Only one thing is clear:
The only reason anything is happening in this case is that a tough federal
judge has said this isn’t going to happen anymore. Judge Royce Lamberth is
the best thing that has happened to the Native Americans in 200 years.
We’re now seeking a receiver to take over. Every standard that’s ever been
used to appoint a receiver is met in this case. You have deception,
destruction of evidence, loss of trust funds and refusal to comply with court
orders. I don’t think there’s a single standard that hasn’t been violated here.”
       What’s at stake if Lamberth decides the DOI isn’t capable of handling
this problem and gives control to a receiver? Plenty. According to Gingold,
“Interior wouldn’t like this because the Indian trust monies are its
 principle source of money and power. Lose the trust and the attendant
power and it raises questions about whether you even need a DOI. No
government agency ever would give up that kind of power because that’s
what’s most important in Washington.”
       While Gingold waits for Lamberth’s decision as to whether the DOI will
remain in control of the Indian trusts, Interior Secretary Norton says she is
doing her best. She assures Insight that her goal is to “put together a trust-
reform management team and implementation strategy that will meet
challenges head-on, solve problems one-by-one and leave a legacy of
milestones met and tasks accomplished. It’s a priority of the Bush
administration to move Indian trust systems into the 21st century and
identify and implement a method to make a historical accounting that will be
funded by the Congress and is acceptable to the court.”
       After more than 100 years of dishonesty, who can blame American
Indians for being dubious? But Washington insiders see this as an
opportunity for the Bush administration to take the heat off their
appointments at DOI and begin asking Democratic celebrities, including
Babbitt and Rubin, what happened to that unaccounted for $10 billion-plus.



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