WASHINGTON ? Congress finally called Interior Secretary Gale Norton on to the carpet for the trust fund debacle, and promptly compared her Department to the nation’s largest business fiasco.

“The Interior Department has acted like the Enron of federal agencies when it comes to trust funds management,” said U. S. Rep. Nick Rahall, D- W. Va., ranking minority member of the House Resources Committee. “The record shows a long history of mismanagement and irresponsibility.”

Rahall spoke Feb. 6. at the opening of Congress’ first hearing on Interior’s plan to reorganize its trust management responsibilities.

Norton, accompanied by Assistant Secretary for Indian Affairs Neal McCaleb and Special Trustee Thomas Slonaker, testified before a contentious committee, along with tribal leaders from throughout the country and plaintiffs in the ongoing class action over individual Indian trust accounts. The hearing focused on the status of individual and tribal trust fund accounts, how Interior is responding to issues raised in the class action suit Cobell v. Norton, and Interior’s plans to form a new tribal trust management agency.

It has been nearly eight years since Congress addressed such issues. In 1994, Congress passed the American Indian Trust Fund Management Reform Act, which established new financial requirements for the BIA in account management and set up opportunities for tribes to gain control over their accounts. The Act also established the position of a Special Trustee to oversee and direct all aspects of trust funds management reform within the BIA, the Bureau of Land Management (BLM), and the Minerals Management Service. The federal court in the Cobell case has found that Interior is violating this law.

As the hearing opened, Rahall chastised Interior for its poor planning, lack of compliance with its trust duties, and failure to consult with tribes before announcing its plan to reorganize the federal government’s trust responsibilities.

When Rahall asked Secretary Norton if she thought Interior could ever provide a full historical accounting of trust funds, she could give no clear answer, only saying that they were working on a “complete plan on how that can be accomplished.” Norton’s testimony focused on the tremendous task of trying to reform the tribal trust management system, Interior’s plan to reorganize trust authority, and her consultations with tribes.

Many committee members questioned her decision to move forward with a reorganization plan before consulting with tribal governments and trust beneficiaries. She replied that she needed to take quick action.

“It’s important that we move forward quickly,” said Norton. “Under the consultation agreement we only begin to consult once we have a plan. We wanted to move forward with our proposal. Although I continue to push forward with our proposal, I just want something to move forward materially. The proposal was put on the table in my role as manager.”

Committee members also raised concerns about creating a whole new agency instead of trying to correct the problems within current agencies. Under Interior’s proposal, a new agency would be formed called the Bureau of Indian Trust Assets Management, or (BITAM), and would be headed by a new Assistant Secretary of Indian Trust Assets Management. Committee members also asked her opinion of tribal alternative plans.

“At some level we need to have leadership separate from the BIA to look at this in a new way,” she said. “I believe that our idea is superior for the change that is needed. We need to have some departure from the BIA for real reform.”

Some on the Committee suggested that further legislation might be needed. “Congress may have to take another look at this,” said Rep. J. D. Hayworth, R-Ariz.

“The Administration responded to the demands of the court by quickly drafting a plan to fix the trust mess,” said Michael Jandreau, Chairman of the Lower Brule Sioux Tribe. “However, it did so without consulting the very people who would be affected by such a massive restructuring ? Indians. Not surprisingly, this proposal has been met with concern, suspicion, fear and even outrage from Indian people across the country. BIA reorganization has become the most important issue on our reservations.”