indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+ indianz.com on soundcloud
phone: 202 630 8439
Dynamic Homes
Advertise on Indianz.Com
Home > News > Headlines

Printer friendly version
Bush reform plans debated in trust fund trial
FRIDAY, MAY 2, 2003

A former Department of Interior official gave the Bush administration's trust reform plans a "flunking grade" on Thursday and said they would not fulfill the federal government's obligations to Indian beneficiaries.

Paul Homan, who served as special trustee during the Clinton administration, testified on the opening day of the next phase of the long-running trust fund case. He repeatedly criticized two proposals Secretary of Interior unveiled earlier this year to considerable opposition in Indian Country.

In one, the government estimates that it can account for the Individual Indian Money (IIM) trust through a statistical sampling and a transaction-by-transaction analysis. The effort is expected to cost $335 million and take five years.

But Homan said the plan will not account for "all funds" in the trust, as required by federal law and common law trust standards. An expert hired by the government was only able to verify 90 percent of transactions in a limited sample, he noted.

"When the commercial standard is 100 percent," he testified, "it is a flunking grade."

Homan also said another government initiative that reorganizes the Bureau of Indian Affairs (BIA) and the Office of Special Trustee (OST) was inadequate because it fails to address systemic management problems. Tribes are also opposing the changes, which are being implemented over the coming months.

"The department does not have enough critical mass to manage this properly," he told the court.

A banking executive with more than 30 years of government and private experience, Homan is considered by the plaintiffs to be a key witness. Lead plaintiff Elouise Cobell, a member of the Blackfeet Nation of Montana, attended the proceedings and felt confident with his testimony.

The Department of Justice sought to disqualify him as an expert but U.S. District Judge Royce Lamberth, who has presided over the case since 1996, rejected the request yesterday morning.

Homan's time on the stand, which is expected to stretch into early next week, followed opening arguments in the trial. Dennis Gingold, an attorney for the Indian beneficiaries, said Lamberth has shown "extraordinary restraint" over the years.

"It's time for that restraint to end," he told Lamberth, urging him to set a trial date to determine accurate balances for more than 500,000 IIM accounts that have been created since 1887. He said the plaintiffs will be ready as early as July to start the correction phase, the final phase, of the case.

John Stemplewicz, a Department of Justice attorney, presented the government's arguments. He criticized the plaintiffs' proposals as overly vague and impossible to implement, saying they go outside the bounds of current law.

"We believe that adopting it would be wrong," he said of the plaintiffs' accounting plan.

He also said changes in the plaintiffs' reform plan would be better addressed by Congress. "Plaintiffs are proposing a quick fix to a very complex problem," he argued.

Homan was the first person to hold the title of Special Trustee for American Indians, a post created by Congress in the wake of reports and investigations that documented widespread trust management failures at the Interior. But he faced opposition from then-Secretary Bruce Babbitt, who provided limited funding and did not give him any authority to make change.

Some tribal leaders didn't warm up to Homan because he proposed radical changes in the trust. They also said he created a strategic plan without their input. Babbitt ended up modifying the plan on the guises that he was doing it on behalf of tribes.

Homan ended up resigning in January 1999 because Babbitt, on the eve of the Clinton administration's contempt trial, reorganized OST.

After Homan, the plaintiffs plan to call Dick Fitzgerald, an OST official, Treasury employees, several experts and other witnesses.

The government plans to call Deputy Secretary Jim Cason and Special Trustee Ross Swimmer in addition to several expert witnesses.

The trial resumes today at 2 p.m.

Relevant Documents:
DOI: Historical Accounting Plan | DOI: Fiduciary Obligations Compliance Plan | Plaintiffs: Remedial Plan | Plaintiffs: Reform Order

Relevant Links:
Indian Trust: Cobell v. Norton - http://www.indiantrust.com
Cobell v. Norton, Department of Justice - http://www.usdoj.gov/civil/cases/cobell/index.htm
Indian Trust, Department of Interior - http://www.doi.gov/indiantrust

Related Stories:
Cobell launches next phase of trust case (5/1)
Judge affirms full IIM accounting (4/29)
Court hears Norton's trust fund appeal (4/25)
Activity in Cobell case keeps everyone busy (4/23)
DOI concealed TAAMS problems from court (4/22)
On trust reform, BIA and OST battled till the end (4/22)
Norton gets another day in court (4/21)
Bush administration turns to Congress on trust (04/04)
Judge authorizes release of trust fund report (03/26)
Appropriators question historical accounting plan (03/13)
On accounting, Norton find her magic date (03/12)
Pressure stirs to settle trust fund lawsuit (02/27)
Spending bill keeps provisions affecting Cobell (02/14)
Norton's plan faces court scrutiny (1/27)
Tribes debate response to trust reform plans (01/13)
Trust programs see historic increase (2/4)
Standards guide reform effort (1/8)
What happened to all the land? (1/8)
Cobell trust reform plans filed (1/7)
Norton to fight IIM accounting (1/7)
Norton won't account for assets (1/6)
Lamberth slams claimed accounting (12/23)
Tribes opposing trust fund settlement bill (11/13)
Judge rejects Norton's 'absurd' accounting claim (09/23)
Funding battle underlies trust obligations (7/19)
Interior budget bill generates strong debate (7/17)
Opposition to trust fund bill mounts (7/15)
Norton delivers accounting plan (7/5)
House bill cuts trust fund accounting (6/28)

Copyright © Indianz.Com
More headlines...
Stay Connected:
On Facebook

On Twitter

On Google+

On SoundCloud
Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Native Sun News: Lakota riders complete journey to Little Bighorn (7/2)
Lakota Country Times: Newspaper takes home top honors at NAJA (7/2)
Brandon Ecoffey: Delivering stories that matter to Indian Country (7/2)
Ivan Star: Creating a culturally appropriate economy at Pine Ridge (7/2)
Elizabeth Hawksworth: Being patriotic and being Native in Canada (7/2)
Micah A: Blood quantum does not make me any less of an Indian (7/2)
David Shorter: Learning not to speak on behalf of Native peoples (7/2)
Marc Simmons: Legend of Catholic priest saved by grateful tribe (7/2)
Sen. McCain deemed responsible for land swap at sacred Oak Flat (7/2)
A Tribe Called Red releases free remix of Buffy Sainte-Marie track (7/2)
Pamunkey Tribe wins final federal recognition decision from BIA (7/2)
Duwamish Tribe rejected for federal recognition for a third time (7/2)
BIA accused of blocking road access on New Mexico reservation (7/2)
Chippewa Cree Tribe elects Ken St. Marks as chair for fourth time (7/2)
Mississippi Choctaw leader comes out on top in unofficial results (7/2)
Bois Forte Band grows economy with second Tim Hortons Cafe (7/2)
Chickasaw Nation hails selection of permanent Indian law chair (7/2)
Editorial: Gila River Indian Community to blame for highway path (7/2)
Cow Creek Band continues to oppose new Coquille Tribe casino (7/2)
Confederated Salish and Kootenai Tribes renovate casino resort (7/2)
Four more tribes in New Mexico enter Class III gaming compact (7/2)
Editorial: Pojoaque Pueblo gets pass on illegal gaming operation (7/2)
Save Oak Flat caravan plans journey to DC to protect sacred site (7/1)
Court reluctantly backs NLRB in Saginaw Chippewa Tribe dispute (7/1)
Native Sun News: Opposition grows to delisting of grizzly bears (7/1)
Lakota Country Times: Reservation counties rank as deadliest (7/1)
Steve Russell: Professor outed as Cherokee fraud once again (7/1)
Harlan McKosato: Indian people survive despite mistreatment (7/1)
Marshall Matz: Fight for $380M in Keepseagle funds continues (7/1)
BIA acquires former military site in trust for Ho-Chunk Nation (7/1)
Appropriations bill adds $10M for tribal courts in PL280 states (7/1)
Sen. Murkowski questions definition of 'Indian' for health care (7/1)
South Dakota board won't back name change for sacred peak (7/1)
Fort Peck Tribes take on cost for homes promised by Brad Pitt (7/1)
Hoopa Valley Tribe orders water restrictions as tanks run dry (7/1)
Cherokee Nation certifies results of election for top positions (7/1)
Secretary Sally Jewell reaffirms opposition to racist mascots (7/1)
Virginia tribes hindered by racist policies created by one man (7/1)
Column: Native Code Talkers defended nation with languages (7/1)
Guilty plea for stabbing of BIA superintendent in South Dakota (7/1)
Opposition group rallies over Miccosukee Tribe land-into-trust (7/1)
Pojoaque Pueblo keeps casino open after gaming deal expires (7/1)
Court allows lawsuit for incident at Tonto Apache Tribe casino (7/1)
Navajo Nation Council approves bill to share gaming revenue (7/1)
Soboba Band celebrates 20th anniversary for gaming facility (7/1)
Mashantucket Tribe extends agreement for $1.7B casino debt (7/1)
BIA adopts new policy regarding federal recognition process (6/30)
Supreme Court agrees to resolve another Indian law dispute (6/30)
Patrick Murphy: Star Trek's William Shatner visits Navajoland (6/30)
Yvette Roubideaux: Making progress at Indian Health Service (6/30)
Native Sun News: Wambli Ska group shares culture with youth (6/30)
Lakota Country Times: Oglala Sioux leader pushes zeolite mine (6/30)
Native Sun News: BLM to update plan for land near Bear Butte (6/30)
Alex Jacobs: Fake Indians damage the real Indian community (6/30)
Sarah Sunshine Manning: Even toys carry harmful messages (6/30)
Ponca Tribe sends twelve youth to White House conference (6/30)
Lobbyists met at White House to discuss federal recognition (6/30)
Alaska Native man finally out on parole in 1997 homicide case (6/30)
Gyasi Ross gets nod for 'Marlon Brando' single off new release (6/30)
Washington governor supports repatriation of Kennewick Man (6/30)
Morongo Band interested in acquiring Colt gun manufacturer (6/30)
Gila River Indian Community files suit to protect sacred place (6/30)
Lac Du Flambeau Band man sentenced for abusing young girls (6/30)
Sault Tribe protected by sovereign immunity in casino dispute (6/30)
Pojoaque Pueblo at critical juncture with Class III gaming deal (6/30)
BIA releases scoping report for Coquille Tribe's Class II facility (6/30)
Local leaders talk Tohono O'odham Nation casino controversy (6/30)
Editorial: Extend Class III casino compact with Seminole Tribe (6/30)
Rep. McCollum vows support for Tribal Labor Sovereignty Act (6/29)
BIA issues long-awaited update to federal recognition process (6/29)
Native Sun News: Tribal youth share traditions and technology (6/29)
Lakota Country Times: Treaty council slams mine at Pine Ridge (6/29)
Mark Trahant: Action plan needed for health in Indian Country (6/29)
more headlines...

Home | Arts & Entertainment | Business | Canada | Cobell Lawsuit | Education | Environment | Federal Recognition | Federal Register | Forum | Health | Humor | Indian Gaming | Indian Trust | Jack Abramoff Scandal | Jobs & Notices | Law | National | News | Opinion | Politics | Sports | Technology | World

Indianz.Com Terms of Service | Indianz.Com Privacy Policy
About Indianz.Com | Advertise on Indianz.Com

Indianz.Com is a product of Noble Savage Media, LLC and Ho-Chunk, Inc.