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- NATION, Page 30Letting Down the TribeScandal 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.
-
- 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.
-
- 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.
-
- 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.
-
- 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."
-
- 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.
-
- 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.
-
- 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.
-
- 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."