Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Clinton's Scandals: Is this corruption the worst ever? -- Ignore unavailable to you. Want to Upgrade?

To: Pat W. who wrote (11765)	2/19/1999 9:32:00 PM
From: Machaon	Read Replies (1) \| Respond to of 13994

<< On the bright side, perjury doesn't seem like such a big deal any more. >> Perjury is still perjury. What you are misunderstanding is called "Burden of proof".

To: Pat W. who wrote (11765)	2/23/1999 7:48:00 AM
From: Zoltan!	Read Replies (1) \| Respond to of 13994

More from the most corrupt administration in US history: February 23, 1999 Review & Outlook Indian Takers The Clinton Administration now has the distinction of being the first to have two of its Cabinet officers cited for contempt of court at the same time. It's been a long six years since President Clinton promised "the most ethical administration in history." The contempt orders against Interior Secretary Bruce Babbitt and Treasury Secretary Robert Rubin grew out of a class-action lawsuit over the government's mishandling of 300,000 trust fund accounts totaling $2.5 billion that it managed on behalf of American Indians. Last year, Senator John McCain of Arizona said that if anyone in the private sector had operated the way the government had "they would be in jail today." He plans oversight hearings on March 3. Indeed, the bottom line of U.S. District Court Judge Royce Lamberth's ruling is that Washington isn't exempt from the standards it sets for private trustees. Drawing on two Supreme Court opinions, Judge Lamberth ruled that the government has a fiduciary obligation to properly manage accounts it controls. (Social Security trustees take note.) He noted that the Bureau of Indian Affairs lacked records for $2 billion of tribal account transactions over a 20-year period. The government could be liable for up to $575 million in possible losses. The lawsuit was brought by Elouise Cobell, the chair of the Blackfeet National Bank, and four other Native Americans. They claimed the government had mismanaged royalties earned by Indians through oil and mineral sales. Evidence mounted that the government lacked any comprehensive records system and the BIA employees in charge seldom had any financial training. The problem began when Judge Lamberth ordered the government to surrender what records it had. Once again, he was met with the classic Clinton stonewall. "The government's goal was stall, stall, stall and dump it in the lap of the next administration," says Ms. Cobell. Government attorneys missed two court deadlines, with lame excuses. At one point, Interior claimed its warehouses were infested with rodent droppings that might contain a harmful virus, and that only employees in special space suits could comb through the files. The court's patience ended when Paul Hogan, the Interior Department's special trustee in charge of assembling the records resigned in protest last month. Mr. Hogan, a Presidential appointee, accused Secretary Babbitt of taking away his job responsibility and turning him into a scapegoat for the department's failures. Judge Lamberth said he regretted Mr. Rubin had been drawn into a "fiasco," but concluded, "he has totally delegated his responsibility to others and they have miserably failed to comply with this court's orders." He minced no words in his criticism of Mr. Babbitt, who is also under independent counsel investigation for a possible political connection between 1996 campaign contributions and his denial of an Indian casino license. Judge Lamberth said he found "clear and convincing evidence" that Interior and Treasury "engaged in a shocking pattern of deception of the court. I have never seen more egregious conduct by the federal government." But the Clinton Administration may yet escape full accountability. Back in 1997, Judge Lamberth levied $286,000 in sanctions against the Clinton White House for an earlier concealment of records relating to Hillary Clinton's health care task force. That order was appealed and a higher court's decision has yet to be handed down. No one doubts the Justice Department's lawyers will appeal this latest ruling, even though Judge Lamberth says the government "cannot tolerate more empty promises to these Indian plaintiffs. wsj.com