Chippewa Cree Tribe under scrutiny for $361M pipeline project

Monday, April 22, 2013  

The Chippewa Cree Tribe of Montana is being investigated by the Office of Inspector General at the Interior Department, the Associated Press reported.

The tribe received $361 million in federal funds from the Bureau of Reclamation to build a pipeline on the Rocky Boy's Reservation. But the money has been suspended due to accounting problems and conflict of interest issues.

“There’s millions and millions and millions of dollars missing here,” former chairman Ken Blatt St. Marks, who was ousted last month, told the AP. “This reservation is upside down.”

St. Marks reported $3 million in missing funds for the project to DOI. He said that's one of the reasons he was removed from his post by other tribal leaders.

But DOI also has questioned whether St. Marks has a conflict of interest. A company that he owns received a $1.9 million contract for pipeline work before he became chairman.

St. Marks transferred the company to his wife but DOI hasn't been satisfied. And there are other potential conflicts -- the head of the pipeline project owns a company that also received a contract for the pipeline.

The tribe replaced the $3 million that was missing. DOI has given the tribe until April 29 to address the concerns.

“While we commend the tribe for restoring the funds soon after the shortage and for self-reporting the issue, this reallocation of funds without consultation is a serious non-compliance matter with potentially long-lasting implications,” BOR regional director Michael J. Ryan said in a letter, the AP reported.

Get the Story:
Missing cash, conflicts prompt feds to halt funding for $361M pipeline (AP 4/21)

Chippewa Cree Tribe plans for special election for chairman (03/28)