FOR IMMEDIATE RELEASE February 1, 2002 Contact: Philip Smith (202-661-6350) COURT MONITOR FINDS MANY QUESTIONS UNANSWERED ABOUT FUTURE OF TRUST REFORM UNDER NORTON Two New Reports Survey Past Wreckage; Elephant in the Living Room Is Why Anyone Would Believe Senior BIA Officials Can Reorganize Trust Functions WASHINGTON, D.C. Court Monitor Joseph S. Kieffer III issued two new reports today, underscoring a 1999 court order to the Interior Department to conduct an historical accounting of all funds deposited in the Individual Indian Monies (IIM) trust, no matter the cost, and raising numerous questions about the future of trust reform under Secretary Gale Norton. Kieffer’s reports to U.S. District Judge Royce C. Lamberth already form the basis for contempt charges against Norton and BIA head Neal McCaleb, now being heard by Lamberth. Kieffer today described Interior’s claims that trust reform was underway as a chimera. A cynical observer would go so far as to say it [trust reform] never left dry dock; rotting there. Kieffer’s latest effort (posted at www.indiantrust.com) is a broad survey of hot button issues. Among the highlights: Historical Accounting. There is no doubt the Office of Historical Trust Accounting has made more progress in six months than the past administration did in six years. However, that process is not much further along than the plaintiffs’ description of it as ‘a plan for a plan.’ The Court Monitor cannot evaluate the Comprehensive Plan because, four months before its planned submission to Congress, there still is no plan. Citing signs that Interior may try to limit the scope of the accounting despite Lamberth’s order to account for all funds, whenever deposited Kieffer urged that Interior submit its plan to the judge before asking Congress to fund it. BITAM. Norton’s proposed reorganization of trust functions into a new Bureau of Indian Trust Asset Management is a major question mark. There is no BITAM except in concept and words. There is no team of experienced trust officials and no staff. The elephant in the living room of BITAM, Kieffer said, is why would anyone believe that this solution to trust reform will have any more success than earlier failed plans, when the executive level officials in DOI who have been responsible for this debacle are still in positions of leadership, prepared to continue to ‘oversee’ but not be accountable for trust reform operations. Norton’s 8th Quarterly Report to the Court. Kieffer said the 8th Quarterly Report was better than its predecessors, but serious shortcomings remain. The Special trustee does not believe the 8th Quarterly Report is complete or that Defendants [Norton] can even determine where it is not. The Court Monitor agrees. The report is an amalgam of conflicting statements and counter-statements. It contains no organized plan of action or even a baseline or timelines for this Court to determine the extent of the effort necessary to bring trust reform to reality. The 8th Quarterly Report leaves it to this Court to decide how bad things really are. In that regard alone, the Report is complete and accurate things are really bad. TAAMS and BIA Data Clean-up. The 8th Quarterly Report confirms that TAAMS and BIA data clean-up will require total reorganization and that TAAMS is most likely unsalvageable. What is not provided [in Norton’s 8th Quarterly Report] is any idea of when the IIM account holders can expect to have a system that works and an historical accounting that will ensure that the Indian trust system can provide them the Congressionally and Court mandated fiduciary trust accountings to which they are entitled as beneficiaries of the Indian trust. Kieffer’s final conclusion: One of the three branches of the federal government must manage the creation of a new fiduciary trust organization whose experienced trust officials must select, organize and train a nationwide trust staff and move forward as rapidly as possible at building a new trust management system not tinkering with a resurrected crew and vessel to properly house, maintain and protect the Indian trust beneficiaries’ land, resources and assets. To subscribe to the Indian Trust mailing list, please paste the following link into your browser: http://www.indiantrust.com/