THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

Federal judge says Interior Dept. delayed Indian trust accounting

Email|Print| Text size + By Mary Clare Jalonick
Associated Press / January 31, 2008

WASHINGTON - A federal judge ruled yesterday that the Interior Department has "unreasonably delayed" its accounting for billions of dollars owed to Indian landholders.

The federal agency "has not, and cannot, remedy the breach" of its responsibilities to account for the Indian money, US District Judge James Robertson said in a 165-page decision in a long-running federal lawsuit alleging mismanagement of Indian trust funds.

"Indeed, it is now clear that completion of the required accounting is an impossible task," Robertson said.

The suit, first filed in 1996, alleges that the government has mismanaged more than $100 billion in oil, gas, timber, and other royalties held in trust from Indian lands dating to 1887.

An Interior Department spokeswoman said officials were reviewing Robertson's decision.

Robertson said he will schedule a hearing in the next month to discuss a way to solve the problem. He added that his conclusion that Interior is unable to perform an adequate accounting does not mean that the task is hopeless.

"It does mean that a remedy must be found for the department's unrepaired, and irreparable, breach of its fiduciary duty over the last century. And it does mean that the time has come to bring this suit to a close," Robertson said.

The judge said that although department officials had attempted and continued to attempt to "cure the breach of their fiduciary duty" they have not succeeded in doing so and "have unreasonably delayed the completion of the required accounting."

The judge also blamed Congress for the lack of money appropriated for the cause, citing the "tension between the expense of an adequate accounting and congressional unwillingness to fund such an enterprise."

Interior Department officials argued during the October trial that their job was difficult with limited money from Congress. Robertson agreed, saying the department deserves credit for trying to strike a balance between "exactitude and cost."

He said he did not agree with the Indian plaintiffs' assertion that an adequate accounting is not possible because of missing records. The record is inconclusive on that point, he said.

Filed by Elouise Cobell, a member of the Blackfeet Indian tribe, the lawsuit deals with individual Indians' lands. Several tribes have sued separately, contending mismanagement of their lands.

The government proposed paying $7 billion partly to settle the Cobell lawsuit in March 2007, but that was rejected by the plaintiffs, who estimate the government's liability could exceed $100 billion. The Interior Department estimates that it has spent $127 million on its accounting in the past five years.

Robertson took over the case after Judge Royce Lamberth was removed by the US Court of Appeals for the District of Columbia Circuit, which said he had lost his objectivity.

The government had asked that Lamberth be replaced after he lambasted the Interior Department, writing in a ruling that it "is a dinosaur - the morally and culturally oblivious hand-me-down of a disgracefully racist and imperialist government that should have been buried a century ago."

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