Norton extends authority of accounting office

FROM THE ARCHIVE

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THURSDAY, OCTOBER 31, 2002

Secretary of Interior Gale Norton has quietly assigned oversight of tribal trust accounts to Ross Swimmer, a former Reagan administration official whose earlier attempt to absolve himself of his responsibilities led to Congressional rebuke.

In a secretarial order dated June 26, Norton extended the life of the Office of Historical Accounting (OHTA) for two more years. The action itself was unusual except that she authorized Swimmer's control of billions of dollars in tribal funds, money he once tried to transfer to private financial institutions.

Swimmer doesn't get to decide how the money is invested or handled. That function still rests with the Office of Trust Fund Management (OTFM).

But along with Bert T. Edwards, a former Clinton administration official and Arthur Andersen partner who is OHTA's executive director, he will direct how an historical accounting of tribal trust funds will occur. Its a task he failed to undertake in the late 1980s as head of the Bureau of Indian Affairs.

The decision to extend the authority of OHTA, which was originally created to handle individual trust accounts, is another in a series of actions that have bolstered Swimmer's role at the Department of Interior.

It also represents a build-up of power among political appointees who joined the Bush administration free of Senate scrutiny. Along with Associate Deputy Secretary Jim Cason, Swimmer and other top aides who weren't subjected to the rigorous confirmation process now wield unprecedented control over Indian affairs.

The grab hasn't come without complaints. Tribal leaders and some members of Congress have objected to Swimmer's involvement in trust reform.

The Navajo Nation, the largest tribe in the country, walked away from discussions with department officials in part due to Swimmer's presence.

But Norton has shielded Swimmer repeatedly from criticism. "Ross Swimmer proposed some changes when he was Assistant Secretary that, had they been adopted, we would not be in the mess we are in today," she said at a February hearing to loud boos from tribal leaders in attendance.

In 1986, Swimmer -- without consulting tribes -- tried to outsource management of Indian funds to private banks. His position led Congress to forbid any transfer without first accounting for the money.

The provision, contained in the Interior appropriations bill, still exists today.

Despite the rebuke, Swimmer a year later signed a $22 million contract to develop a computer system with functions similar to the now failed Trust Asset and Accounting Management System (TAAMS). He now has control over TAAMS' successor, dubbed Trust Systems.

These actions, and others, prompted an historic Congressional investigation into the BIA. The result was the report "Misplaced Trust" and the passage of the American Indian Trust Reform Act of 1994.

The act is under serious review as the department revamps how it handles trust.

Swimmer, in his role as director of the Office of Indian Trust Transition, has direct authority over OHTA, trust accounting computer systems, probate, data cleanup and an effort known in tribal circles as the "as-is / to-be" model of trust functions. He also helps compile quarterly court reports on trust reform.

Relevant Documents:
New Order: Establishment of the Office of Historical Trust Accounting (June 27, 2002) | Original Order Establishment of the Office of Historical Trust Accounting (July 10, 2001) | Action regarding Trust Reform and Historical Accounting (July 10, 2001)

Other Reports:
Misplaced Trust: The Bureau of Indian Affairs Mismanagement of the Indian Trust Fund (House Rept. 102-499)