Norton Hit on Indian Trust Funds 
Motion Alleges Workers Lack Assurances on Whistle-Blowing 

By Ellen Nakashima and Bill Miller
Washington Post Staff Writers
Wednesday, April 11, 2001; Page A25 


Native Americans have asked a federal judge to hold Interior Secretary 
Gale A. Norton in contempt of court, charging that she has failed to 
ensure that government employees who know about problems with Indian 
trust funds can speak freely without fear of reprisal.

The motion was filed Monday in U.S. District Court before Judge Royce 
C. Lamberth, who two years ago held Norton's predecessor, Bruce Babbitt,
 and then-Treasury Secretary Robert E. Rubin in contempt for "flagrant 
disregard" of his orders to provide documents related to the trust 
funds -- part of a lawsuit filed on behalf of the Indiansin 1996.

Norton has inherited a trust program left in disarray by her 
predecessors, but that does not absolve her of the obligation to take 
steps to correct the problem, said lawyers for the plaintiffs led by 
Elouise P. Cobell, a member of the Blackfeet tribe of Montana. The 
trust accounts, which cover at least 300,000 Indians, were set up to 
compensate Native Americans for use of their land. Lawyers for the 
Indians contend that the government owes up to $10 billion for decades 
of lapses, and now Norton, like Babbitt, is finding herself under the 
scrutiny of a court.

"Norton stated that she was going to take care of this," said Dennis M. 
Gingold, a lawyer for the Indians. "But she says one thing and does 
the other."

The plaintiffs' attorneys are also asking the judge to hold in contempt 
Norton's counsel, who are  career lawyers with the Justice Department. 
Specifically, they are asking Lamberth to rule that Norton disobeyed a 
Feb. 8 order from the court-appointed special master, Alan L. Balaran, 
to issue a memorandum informing all employees that they may communicate 
directly with Balaran in complete confidence and without fear of 
reprisal.

In their contempt motion, the lawyers contend that there is "strong 
evidence" that Norton and her lawyers have fostered "an atmosphere of 
intimidation in the various Department of Interior field offices." 
They allege that the memorandum demanded by Balaran has not been 
circulated throughout the Interior Department and that employees 
remain afraid to speak out because they fear they will be fired or 
transferred.

But Interior Department officials yesterday produced copies of 
memoranda they say prove that they complied with Balaran's order: 
a Feb. 16 memo from the Office of the Special Trustee, which oversees 
trust fund management, directing staff to distribute Balaran's order; 
a Feb. 22 e-mail from Deputy Commissioner Sharon Blackwell to regional 
directors in the Bureau of Indian Affairs directing the circulation of 
Balaran's order, which was attached, to all employees.

In February, Balaran randomly contacted 15 of 88 Bureau of Indian 
Affairs (BIA) field agencies and found that nine had received the 
order, and six had not. 

"We have made every effort to try to distribute this directive," 
Interior Department spokeswoman Stephanie Hanna said.

But the Indians' lawyers are not satisfied, saying that the government 
has failed to provide a "sworn statement" to the court that all 
employees in the field offices received the order.

Hanna said that the agency is reviewing ways to more easily distribute 
information to employees across the country who work on issues related 
to the Indian trust funds. One option might be putting information on 
the Interior Department Web site, she said.

She shrugged off allegations of intimidation in the field offices. 
"The Interior Department does not feel that anyone has been retaliated 
against because of the Cobell case," she said. "The Cobell plaintiffs 
have consistently tried to strike at the highest possible level in 
their accusations, whether that person has any bearing on the 
[situation] or not. The nature of litigation is that you make the 
most extreme comments you can and see what happens."

In a related development, Justice Department lawyers Monday sent 
Balaran a letter that acknowledged for the first time that Indian 
trust records kept by the BIA, some more than 100 years old, are in 
"imminent" danger.

"Many of these documents are deteriorating due to age and use and 
should not be at the local agency office in the first place," wrote 
Justice Department lawyer Sarah D. Himmelhoch.

Gingold said the Justice Department had previously assured the court 
that steps were being taken to protect trust fund documents. "What 
this letter demonstrates is that the malfeasance is continuing," 
Gingold said.

Hanna noted that the BIA is still without a director, but that Norton 
is working to fulfill her pledge to "straighten out" the trust funds. 
"This administration is very committed to continuing the efforts for 
Indian trust reform," she said.

TO READ COURT DOCUMENTS: www.indiantrust.com