http://www.uwec.edu/Geography/Ivogeler/w188/articles/tribes.htmU.S. Mismanagement of Indian Trust Funds
NEVER a man to mince his words, General William Sherman summed it up in 1865. "Indian reservations", he said, "are a parcel of land set aside for Indians, surrounded by thieves." Most of today's Indians would agree. For decades, they have complained that their overseers from the Bureau of Indian Affairs ( BIA ) have not had their interests truly at heart. In particular, they are upset by the government's mismanagement of the Individual Indian Money ( IIM ) trust accounting system.
Under this arrangement, the United States acts as a trustee on behalf of around 500,000 Indian landowners. The policy dates from various "allotments acts", chief among them the Dawes Act of 1887, under which the federal government broke up tribal lands within the reservations into 80-or 160-acre tracts. These tracts are leased out for a fee to oil, gas or timber companies by the government. Fees for the leases are paid to the Treasury Department and then, at least in theory, back through the BIA to the individual Indians. About $350m-500m is estimated to pass through the IIM accounts each year, but the accounting has long baffled Indians and outside auditors alike.
Tribespeople claim that the collection, investment and distribution of IIM money is a shambles, and that as much as $10 billion may be owing to the Indians (although, as one lawyer puts it, the numbers are "all over the map"). For example, the Interior Department keeps no record of income earned by short-term leases (up to five years) where there has been no transaction for 18 months; there are more than 200,000 such leases. About 50,000 active trusts cannot be accounted for. Indians often have no idea what company is working on their land, how much it is taking from it, or how much the land has earned. The government protests that it sends the cheques out, but that Indians can be difficult to find. Bear in mind that these are some of the most wretched people in the United States.
In 1996 five tribal members sued, saying they wanted a formal accounting of their trusts. The mess turned out to be worse than anyone had imagined. Paul Homan, once a boss of Riggs Bank and a former head of trust operations for the comptroller of the currency, testified that the record-keeping system for the IIM accounts was "the worst that I have seen in my entire life". When pressed, the Bureau of Indian Affairs, the Interior Department (which oversees the BIA ) and the Treasury Department, which is the custodian of all BIA trusts and writes the cheques, could not verify the accuracy of any single account.
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