[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 375-376]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      NATIVE AMERICAN TRUST FUNDS

  Mr. JOHNSON. Mr. President, I rise today to express my deep concern 
for the outlook of the trust fund management system. I have requested 
on numerous occasions that the Department of the Interior to consult 
with tribes on this issue. I understand this is difficult, given the 
scope and expanse of the approximate 560 Tribes in the United States, 
but it must be done in a far more meaningful manner than has been the 
case up until now.
  Tribes feel that the Department of the Interior has presented a plan, 
and are simply going through the motions of ``consultation.'' The very 
idea of consultation is not to formulate a plan and then impose it upon 
the interested party. It is to work with the effected parties and 
formulate a plan together. This is the essence of consultation between 
the Federal Government and Indian Country; it is at the heart of true 
government-to-government relationship.
  The present and future challenge the Department of the Interior, 
Bureau of Indian Affairs and the Office of Special Trustee face are a 
high priority for South Dakota's Indian tribes. As a member of both the 
Senate Indian Affairs Committee, as well as, the Appropriations 
Committee, I look forward to working on efforts to improve the quality 
of services provided by the Department, and to protect the interests of 
tribes in my state of South Dakota and across the country.
  The issue of Trust Fund mismanagement is one of the most urgent 
problems we are faced with in Indian Country. Of all the extraordinary 
circumstances we find in Indian Country, and especially in South 
Dakota, I do not think there is any more complex, more difficult and 
more shocking then the circumstances we have surrounding trust fund 
mismanagement.
  This problem has persisted literally for generations, and continues 
today.

[[Page 376]]

Administrations of both political parties have been inadequate in the 
response, and the level of direction and the resource provided by 
Congresses over past decades has also been sadly inadequate. The 
Federal Government, by law, is to be the trustee for Native American 
people. When the Trust Fund Management Act of 1994 has passed, I was 
hopeful that this accounting situation would at last be remedied. 
Unfortunately, this has not been the case.
  In 1996, I was appointed by Chairman Young to the Congressional Task 
Force on Indian Trust Fund Management, to review and study the 
management and reconciliation of funds administered by the Department 
of the Interior's Office of Trust Fund Management. Those meetings were 
informative but far from productive as three years and many millions of 
dollars later, this problem still persists.
  My concern remains, where are we now, and what does the Department 
hope to accomplish from the creation of another bureau? Far too much 
time and resources have been exhausted attempting to remedy this 
deplorable situation, which affects far too many of South Dakota's 
poorest people.
  This is one of the most urgent problems we face in Indian Country, 
and there are so many more problems that flow from, or the solutions 
stem from the inability to come to terms with this issue. Congress has 
reviewed his issue over 10 times in recent years. We should not have to 
continue to revisit this issue ten more times to get it solved.
  On January 21, 2002, The Sioux Falls Argus Leader published an 
editorial entitled ``Tribes Capable of Managing Own Trust Funds.'' I 
commend this editorial to my colleagues. It urges Secretary Norton and 
the Assistant Secretary for Indian Affairs, Neal McCaleb, in the 
strongest possible terms, to consult with tribes.
  The Federal Government is fond of saying that it will operate 
``government to government'' with Indian tribes, but then too often it 
consults after the fact in an insulting manner. It is time to give 
tribes greater responsibility over their assets and their budgets.
  It is imperative that we remedy this situation. More years will go by 
and more opportunities to correct this great injustice will be passed 
unless Congress and the administration at last give resolution of this 
trust fund crisis the attention and the resources it deserves.
  Mr. President, I ask unanimous consent that The Sioux Falls Argus 
Leader editorial be printed in the Record.
  There being no objection, the editorial was ordered to be printed in 
the Record, as follows:

                 [From the Argus Leader, Jan. 21, 2002]

     Tribes Capable of Managing Own Trust Funds--Government Needs 
                              Cooperation

                        (By the Editorial Staff)

       At a meeting in Albuquerque, N.M., tribes vigorously 
     opposed a plan by the Department of Interior and Bureau of 
     Indian Affairs to create a new agency to manage Indian 
     trusts.
       The same thing happened at a meeting in Minneapolis.
       And again in Oklahoma City.
       And most recently in Rapid City.
       Each time, the reason was the same. Plans to create the new 
     Bureau of Indian Trust Asset Management were developed by the 
     Interior Department and BIA, without consulting a single 
     tribe.
       ``Decisions for Indian people should be made by Indian 
     people. Let us do it,'' said Tom Ranfranz, Flandreau Santee 
     Sioux tribal chairman. ``We're good people. We know banking, 
     we know business, we know farming. Let us do it.'' Amen.
       If there's one main problem with white-Native American 
     relations during the years we've been a nation, it's just 
     this: Whites always think they know what's best for Indians.
       Guess what, it's not always true. Literally billions of 
     dollars are at stake in whatever is decided. The trust fund 
     is built up from money--about $500 million a year--taken from 
     grazing, agriculture, mining, oil production, logging and 
     right-of-way easements. The BIA has managed the fund and 
     doled out money to tribes and individuals.
       We say ``managed'' in a loose sort of way. The BIA can't 
     account for at least $2.4 billion supposed to have been 
     collected and handed out since 1972. Maybe the money is there 
     and maybe it isn't. No one knows.
       That has led to an ongoing lawsuit against the Department 
     of Interior, and each time the parties are in court, 
     revelations of mismanagement seem to get more bizarre. Most 
     recently, it was determined that the computer system used for 
     the trust fund was so horrible just about anybody could hack 
     into it--despite millions of dollars in studies and 
     recommendations on how to fix the problems.
       A judge shut down the system entirely, delaying payments to 
     thousands of people around the country.
       Now, the government officials who created the mess are 
     telling the tribes they have the solution. Part of it is to 
     put former BIA Director Ross Swimmer in charge of the new 
     agency.
       This is the same Swimmer who lost millions of dollars in 
     coal revenue for the Navahos through an unfair agreement he 
     negotiated.
       This is the same Ross Swimmer who destroyed a Cherokee 
     Nation corporation by making bad loans to corporation 
     members.
       Tribal officials are howling about the appointment of 
     Swimmer, and for good reason.
       They've suggested, instead, a task force of tribal 
     representatives from around the country to come up with a 
     better way of doing things. There are some disagreements 
     about how that would work, but it is clearly the right 
     solution.
       Interior Secretary Gale Norton and BIA Director Neal 
     McCaleb seem to have good intentions. It appears they want to 
     undo this long-standing mess and replace the current 
     operation with something that works. For that, we praise 
     them.
       But whatever they do will never work unless it's done in 
     consultation with the tribes. To even try to do otherwise is 
     ludicrous. If they think tribes will buy in to the current 
     plan, they're deluding themselves.

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