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Politics : The Donkey's Inn -- Ignore unavailable to you. Want to Upgrade?


To: Mephisto who wrote (1436)12/12/2001 1:54:35 PM
From: Mephisto  Read Replies (1) | Respond to of 15516
 
Interior Officials Go on Trial
Contempt Charges Stem From Handling of Indian Funds


By Neely Tucker
Washington Post Staff Writer
Tuesday, December 11, 2001; Page A31

Interior Secretary Gale A. Norton and an assistant secretary for Indian affairs went
on trial for contempt of court yesterday, the second time in two years that senior
government officials have faced charges that they lied to a U.S. District Court judge
about a poorly managed trust fund for Native Americans.


Norton, who did not attend the trial's opening before Judge Royce C. Lamberth, and Neal McCaleb, the assistant secretary, are challenging the court's assertion that they knowingly misrepresented failures in the department's efforts to overhaul the Individual Indian Monies trust. That account, which accrues some $500
million each year, is funded by oil, gas, timber and other leases granted by Indians on their properties.

Accounting for the trust has been riddled with problems since the program began more than a century ago, and has been the subject of a lawsuit from the Native American Rights Fund since 1996. Repeated studies have shown serious management failures, including not taking the most basic of accounting steps. The Indians
contend that there are some 500,000 people owed a total of more than $10 billion.

"There is a 1932 Department [of Interior)]document that says there is no good reason to provide Indians an accounting of their funds because they are illiterate,they're stupid, and they won't understand it anyway," Dennis M. Gingold, an attorney representing the Indians, told Lamberth in his opening statement. "The personnel has changed . . . but the secretary's attitude hasn't changed one bit. . . . Your honor ordered them to clean up and fix this system and they have refused
to do it."

Mark Nagle, an assistant U.S. attorney representing Norton, was part of a team of lawyers who filed a lengthy series of challenges to the contempt charges late
Friday. "We're confident the contempt sanctions are not warranted," he told Lamberth.

Norton and McCaleb are the first two of as many as 38 Interior Department officials who face contempt sanctions. They must convince Lamberth that, after he ordered in 1999 that the system be overhauled, they told him the truth about failures in their efforts to do so.

The contempt charges center on five key areas of the trust fund -- two of them relating to why a historical accounting project wasn't performed under a court order, two more relating to computer failures, and a final count that charges the department filed false quarterly reports about its progress.

In February 1999, Lamberth held three Clinton administration officials in contempt on the same case -- then-Treasury Secretary Robert E. Rubin, InteriorSecretary Bruce Babbitt and Assistant Interior Secretary Kevin Gover. Lamberth held that they had not ensured that records were turned over to lawyers
representing the Indians. The government was ordered to pay $625,000 of the Indians' legal fees as a penalty.

© 2001 The Washington Post Company



To: Mephisto who wrote (1436)12/12/2001 2:16:14 PM
From: Karen Lawrence  Read Replies (1) | Respond to of 15516
 
Why'd she lie, when all she had to do was say, this task is overwhelming. 100 years of mismanaged records. Whoa. WAs Arthur Andersen Company auditing?