Home > News > Headlines

Print   Subscribe
Appeals court blocks critical trust fund reports
Monday, June 12, 2006

Three reports that criticized the Bush administration's trust reform efforts were suppressed by a federal appeals court on Friday.

The reports were produced by the special master in the Cobell trust fund case. One detailed how negative information about an accounting system was removed from a court-ordered report while the other two questioned whether the Interior Department was meeting its obligation to preserve trust records.

But in a unanimous decision, the D.C. Circuit Court of Appeals threw out the reports as "tainted." A three-judge panel said the special master -- who resigned under pressure from the administration -- erred by hiring an individual whose private-sector company was in a contract dispute over the Trust Asset and Accounting Management System (TAAMS).

The individual, an employee of a Native-owned firm called Native American Industrial Distributors, "stood to gain financially from a finding of misconduct" regarding the TAAMS contract, the court said, so he shouldn't have been involved with the Cobell case.

Any reports prepared after the hiring of the individual must be suppressed as well, whether or not they were related to TAAMS, the D.C. Circuit panel added. "If those reports have not been used against the [Interior] department and are not presently part of the record before the district court, then so much the better," wrote Judge Donald H. Ginsburg for the majority.

The decision is the first to bear new Interior Secretary Dirk Kempthorne's name. The former governor of Idaho took office earlier this month with an interest in settling the nine-year-old case, according to tribal leaders who met with him in private.

But Cobell v. Kempthorne, as the lawsuit is now known, is far from over. The D.C. Circuit is still weighing a decision on three more matters that the administration considers central to its trust reform initiatives.

The first is a preliminary injunction that requires the disconnection of trust fund systems from the Internet; the second is a notice the government is required to send to all Indian beneficiaries that warns them of "unreliable" trust data; and the third is an unprecedented motion to remove Judge Royce Lamberth from the case by assigning it to another judge.

Oral arguments were held in April. It isn't known when a decision might be issued but Interior officials are hoping for a victory in a case that has seen the department painted as the "morally and culturally oblivious hand-me-down of a disgracefully racist and imperialist government that should have been buried a century ago," in the words of Lamberth.

The three reports that are now suppressed added more fire to the government's failure to account for billions in money owed to hundreds of thousands of individual Indians across the country. Even though Lamberth had never adopted them into the record, the appeals court judges said they needed to be removed out of concern for the "public's confidence in the judicial process."

Although the TAAMS report can't be cited as evidence in the case, many in Indian Country view the $40 million system as a waste of resources that could have been better used for other purposes. Tex Hall, an Indian account holder who serves as chairman of the Mandan, Hidatsa and Arikara Nation in North Dakota, said the trust fund remains broken despite the Bush administration's claims that progress is being made.

"You will receive a check and not know what it's for," he said at a forum in Washington, D.C., in April. "The system needs to be fixed. It is a broken system."

The other two reports -- in the form of site visits to Interior locations -- detailed poor record-keeping that is no stranger to Indian Country. The Clinton administration was held in contempt for destroying 162 boxes of trust fund records despite court orders against doing so.

In related Cobell news, Keith Harper, one of the attorneys on the case, is leaving the Native American Rights Fund next month. He will be joining the law firm of Kilpatrick Stockton, the firm where the other members of the litigation team are based.

Harper, a member of the Cherokee Nation, will continue to work on Cobell but he also plans to pursue other cases on behalf of tribes and individual Indians. He spent more than 10 years at NARF, a non-profit organization founded in 1970.

John Echohawk, the executive director of NARF, remains as co-counsel in the case. He will continue to serve as a chief lobbyist on legislation to settle Cobell. A bill is pending before the Senate Indian Affairs Committee and the House Resources Committee.

Trust Fund Report Decision:
In re: Kempthorne (June 9, 2006)

TAAMS Report:
Interim Report of the Special Master Regarding the Filing of Interior's Eighth Quarterly Report (April 21, 2003)

Relevant Links:
Indian Trust: Cobell v. Norton - http://www.indiantrust.com
Office of Special Trustee - http://www.ost.doi.gov
Cobell v. Norton, Department of Justice - http://www.usdoj.gov/civil/cases/cobell/index.htm
Native American Rights Fund - http://www.narf.org

Related Stories:
Swimmer calls Cobell settlement 'reparations' (5/8)
Cobell: Settle Indian trust fund case for billions (4/20)
Cobell to appear on C-SPAN Washington Journal (4/12)
Cobell renews call for receiver as court hears case (4/12)
Cobell vows fight to resolve trust fund lawsuit (4/10)
Cobell plans big showing on day of court hearing (4/4)
Jodi Rave: Tribes alarmed at trust reform initiative (4/3)
Cobell addresses trust fund mismanagement (3/30)
Ross Swimmer: Indian trust not about mismanagement (3/29)
Norton denies fraud or major problem with trust (3/29)
GAO report warns of billions in lost oil, gas royalties (3/29)
Witness list for hearing on Indian Trust Reform Act (3/28)
DOI trust reform meeting set for Portland, Oregon (3/24)
Kempthorne faces hot issues at Interior Department (3/21)
DOI pressed for more clarity on trust initiative (3/3)
Congress urged to settle Cobell lawsuit for billions (03/02)
Listening Lounge: Joint hearing on Cobell v. Norton (03/01)
Interior hits the road with new trust reform initiative (02/08)
Jodi Rave: Garcia calls for settlement of Cobell (2/3)
Cason slashes BIA budget and blames it on Cobell (2/3)
Tribes discuss trust reform bill, Cobell settlement (1/31)
Commentary: Swimmer still not telling the truth on trust (1/26)
Opinion: Indians want $12B of 'YOUR' money (01/10)
Cobell: Appeals court ruling a favorable one (12/21)
Cobell team awarded fees for lengthy court fight (12/21)
Ross Swimmer: No 'lump sum' settlement for Cobell (12/19)
Attorney: Interior still not living up to trust duties (12/19)
Report: Cason says termination of trust on the table (12/16)
Still no agreement on settlement to Cobell (12/9)
Audio: House Resources hearing on Cobell (12/8)
House Resources to hold hearing on Cobell (12/5)
Elouise Cobell: Lamberth frustrated with DOI (11/28)
Judge Lamberth, the cowboy, sides with Indians (11/28)
Editorial: Settle Cobell trust fund lawsuit (11/25)
Cobell to press Interior on accounting mess (11/22)
Cobell says government not off the hook on trust fund (11/21)
Broad accounting of Indian trust fund blocked (11/16)
Battle over Cobell trust fund case heats up (10/24)
Appeals court considers bias charges in Cobell lawsuit (10/17)
Another Cobell v. Norton hearing this week (10/11)
Interior warned of computer security risks again (09/30)
Editorial: BIA is busy ... dumping trust records (09/29)
Opinion: A century of stalling on Indian trust (9/28)
Editorial: Interior's 'self-serving' claims on trust (9/27)
Editorial: Lamberth now knows what termination is like (9/23)
Trust fund records dumped by federal records agency (9/22)
Editorial: Time to get to bottom of trust fund woes (09/22)
Cobell plaintiffs: Swimmer to blame for trust woes (09/20)
DOI spends $30K to produce glossy report on trust (09/20)
Appeals court hears latest Cobell v. Norton dispute (09/19)
Commentary: Government cheating Indians on trust fund (09/19)
Cobell willing to consider land, payment schedule (09/16)
Appeals court delays Lamberth fairness complaint (09/16)
Lamberth has many fans but Interior not one of them (09/15)
Ross Swimmer: Cobell suit not about mismanagement (09/14)
Two Cobell v. Norton court hearings this week (09/13)
Swimmer disputes Cobell trust fund lawsuit (9/8)
Cobell speaks to account holders on Navajo Nation (9/2)
Editorial: Both sides must work on trust reform bill (9/1)
Interior to negotiate with tribes on trust records policy (08/30)
Cobell speaks to account holders in Arizona (8/31)
Cobell blasts effort against trust fund judge (8/29)
Cobell to update account holders on lawsuit (8/24)
Editorial: Fix trust fund, don't target Lamberth (8/18)
Norton wants Lamberth taken off Cobell case (8/16)
Cobell Letter: Ross Swimmer can't tell the truth (08/08)
Resolution of Cobell v. Norton appears far away (08/05)
Editorial: McCain and Dorgan should fix trust bill (08/04)
BLM CIO threatened with demotion in Cobell case (08/02)
Indian Country, Interior far apart on trust bill (08/01)
Editorial: Settlement of trust fund case at hand (08/01)
Appeals court stays Lamberth order on notices (07/29)
Judge blasts Interior on handling of trust (7/13)
Elouise Cobell: Principles put trust back into trust fund (07/07)
Cobell and Cason to appear on C-SPAN program (7/6)
Cobell calls for settlement of trust fund lawsuit (7/5)
Editorial: Resolution of trust fund debacle needed (7/5)
Editorial: Abramoff scandal can't compare to trust (6/30)
Opinion: Downfall of Indians traced to Army, BIA (6/28)
Pombo supports settlement of Cobell trust fund case (6/27)
Harjo: Tribes lobby to fleece their own people (6/24)
Editorial: Congress should settle trust fund (6/24)
Editorial: Trust fund a 'national embarassment' (6/22)
Indian Country united on trust reform solutions (6/21)
Trust workgroup to outline Cobell settlement goals (6/17)
Echohawk optimistic on settlement of Cobell case (06/03)
Final trust reform meeting held in North Dakota (6/3)
UTTC hosts meeting on trust reform legislation (6/1)
House panel acts to restore Bush budget cuts (05/05)
NCAI and ITMA hold second trust reform meeting (05/04)
Bush administration won't give up fight on Cobell (03/18)
McCain weighs GAO probe of Indian trust debacle (03/10)
McCain lays out Indian agenda for 109th Congress (3/7)
Norton won't testify on trust fund retaliation (2/28)
Bush official won't accept claims of trust mismanagement (02/17)
Appeals court won't hold back Lamberth on trust reform (12/13)
Appeals court supports Lamberth's authority on IT (12/06)
Lamberth critical of Norton's 'bad faith' on trust fund (10/25)
Interior denies attempt to halt trust fund payments (10/05)
Bush administration challenges trust fund ruling (09/16)
Appeals court takes on Cobell trust fund case (9/15)
Lamberth exchanges harsh words with Cobell critic (08/02)
Bush administration calls for end to Cobell case (04/09)
Cobell trust fund suit mediators announced (4/6)
Special master Balaran resigns from Cobell lawsuit (04/06)
DOI's Internet connection shut down for third time (03/16)
Lamberth defends special master against attack (03/16)
Anderson praises Cobell suit in NCAI speech (2/25)
Tribes still frustrated on trust reform (11/20)
Bush officials blasted by tribal leaders (11/19)
Cobell plaintiffs disputing trust fund rider (11/17)
Daschle criticizes 'shameful' rider in DOI budget bill (11/04)
Norton welcomes time-out in Cobell trust fund case (11/4)
Bush official balks at large settlement for Cobell (7/10)
Court investigator slams Interior's trust fund report (04/22)
Norton gets another day in court (4/22)
Court looks into TAAMS 'concealment' (11/07)
Court probes Norton's trust fund report (10/11)
Norton's witness on TAAMS does damage (09/23)
Top trust reform official comes under fire (05/21)
Feisty memos at heart of trust reform feud (05/20)
On trust, the problems remain the same (05/13)
A super assistant secretary, in all but name (05/03)
Memo sounded early warning on TAAMS (2/4)
Trust system takes center stage in contempt (2/1)
Trust reform update sheds some light (1/22)
Norton: Trust reform blueprint 'obsolete' (1/18)
Under watch of Swimmer, TAAMS halted (1/18)
Norton signs trust reform update (1/17)
Witness testifies against software corruption (1/15)
TAAMS: The Titanic Failure (12/20)
TAAMS failure traced to promoted manager (12/20)
Norton ordered to submit trust fund report (12/18)
Official: Trust fund fix at 'great risk' of failure (10/10)
Memo: Solicitor's order was 'intimidating' (10/10)
Interior delaying trust reform report (9/6)

Copyright © 2000-2006 Indianz.Com