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- e NATION, Page 30Letting Down the Tribe
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- Scandal tarnishes a Navajo leader
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- Of all the tales of hard-pressed people, few are more tragic
- than the history of affliction borne by the Indians of the U.S.
- Years of reservation life have left many of them mired in
- poverty and despair. In Washington the Senate's Select Committee
- on Indian Affairs is holding hearings on the general state of
- Indian problems, and they seem to be no better than ever: a high
- rate of alcoholism and mortality, desperate health conditions,
- low employment and income, rampant child abuse. Bad enough that
- years of failed policies administered by the Bureau of Indian
- Affairs have contributed to the difficulties. Now the committee
- has discovered a style of corruption usually associated with the
- white man.
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- A key figure in the lawmakers' investigation is Peter
- MacDonald, 60, Chairman of the Navajo nation, whose reservation
- encompasses 17 million acres in Arizona, New Mexico and Utah.
- Raised to be a medicine man, MacDonald went on to become a
- successful aerospace engineer. In the 1960s he gave up a
- lucrative job to return to his people and help manage their
- finances. It turns out, investigators say, that he managed only
- too well.
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- Elected tribal Chairman in 1970, MacDonald set out to
- improve the Navajos' economy by demanding better prices for the
- tribe's oil, coal and natural-gas reserves. Along the way, say
- his critics, the Chairman spent tribal funds profusely. He
- reportedly hired a public relations firm for $1.5 million. He
- had his office in Window Rock, Ariz., remodeled for $600,000, of
- which $4,800 alone went to pay for carved office doors. He
- chartered a jet for more than $18,000 to take him and his
- family to the 1988 Orange Bowl.
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- At the same time that his accusers say he was depleting the
- tribal treasury, MacDonald was considerably improving his own
- financial state, supplementing his $55,000-a-year salary with
- lavish "gifts" from outside contractors. His critics did not
- call him "MacDollar" for nothing. Testifying under immunity
- before the Senate committee, MacDonald's son Peter Jr. said that
- when his father needed cash, he would call a benefactor and ask
- for "golf balls," MacDonald Sr.'s code word for $1,000 cash
- payments. MacDonald Jr. would then collect the bribe.
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- The most serious allegation facing MacDonald -- who has yet
- to respond to a committee subpoena -- concerns a tawdry
- kickback scam. In July 1987 MacDonald arranged for the Navajos
- to buy the 491,000-acre Big Boquillas ranch near Seligman, Ariz.
- The tribe paid $33.4 million for the place, which only two days
- earlier had been purchased by an oil company for $26.2 million.
- Real estate broker Byron ("Bud") Brown testified that when he
- was fixing the deal with MacDonald, the Navajo leader smiled
- and said, "I assume I'll be taken care of." Replied Brown:
- "Certainly."
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- For his part in the scheme, MacDonald was to receive up to
- $750,000 in cash payments. By the time the plot was exposed,
- Brown says, he had given MacDonald $75,000 in cash and use of a
- $55,000 BMW. Most of MacDonald's fellow Navajos did not share in
- his good fortune; they continue to live their old, hardscrabble
- life. Fully half of all Navajo homes, for example, have no
- electricity or flush toilets.
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- But there's always bingo. According to federal officials,
- the game has become a $400 million business on the nation's
- reservations, and for an obvious reason. Since federal laws give
- Indians some of the privileges of independent countries,
- gambling operations are free from state regulation. Thus while
- most church bingo games in the U.S. might permit a maximum
- prize of $250 a card, the Indian version can offer as much as
- $50,000 for a single game. Several tribes hire management
- companies to run their bingo enterprises, and some of these
- companies, says the FBI, are fronts for organized crime, which
- skims the profits, leaving a pittance to the Indians. At least
- the Navajo nation is spared this form of corruption, since bingo
- is unpopular there; but those looking for a big-money game can
- always find one on a neighboring reservation.
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- MacDonald denies the litany of charges lodged at his
- mahogany door. He claims that the testimony in Washington is
- unsubstantiated and unfair and that he is the victim of an
- attempt to divert attention from mismanagement in the BIA.
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- When the tribe's 88-member council voted to place him on
- indefinite leave with pay, MacDonald got himself reinstated by
- appealing to a Navajo tribal judge, who happens to be his
- brother-in-law. But last week the tribe's supreme court
- challenged the reinstatement. A new judge will hear MacDonald's
- latest appeal. Says Navajo Peterson Zah, a MacDonald rival and
- former tribal chief: "MacDonald has let the Navajo people down."
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