From:

http://shns.scripps.com/shns/story.cfm?pk=BABBITT-08-22-00&cat=WW


Report finds evidence that Babbitt lied, but not enough for
indictment


By GREG GORDON

McClatchy Newspapers
August 22, 2000

WASHINGTON - An independent counsel's final report says she found
"circumstantial evidence" that Interior Secretary Bruce Babbitt
lied to Congress about his agency's rejection of a proposed
tribal casino in Hudson, Wis., but did not find enough proof to
indict him.

Special prosecutor Carol Elder Bruce's 484-page report to a
three-judge court, which was made public Tuesday, repeatedly
challenges Babbitt's candor in 1997 congressional testimony in
which he denied discussing the casino decision with a top White
House official.

But it says there is insufficient evidence to convince a jury
that Babbitt intentionally lied and that he would have plausible
defenses to perjury charges, bolstered by his reputation for
sterling integrity.

Her report suggests that her staff may have engaged in a more
intense debate over whether to prosecute Babbitt than previously
acknowledged. People familiar with the inquiry told the
(Minneapolis) Star Tribune that prosecutors and FBI agents on
Bruce's staff were so divided during a two- to three-week period
in July 1999 over whether to pursue an indictment that she
brought in an outside consultant to provide an objective view and
help sort out the legal issues.

Bruce's report does not confirm that chain of events, but it
offers a special thanks to Gerald Lynch, a Columbia University
law professor, for serving as a consultant near the end of the
inquiry and bringing a "learned perspective" to the case
analysis.

The report provides an illuminating glimpse inside Bruce's highly
secret, 18-month criminal investigation into allegations that the
administration killed the casino in 1995 in return for hefty
campaign donations from Minnesota and Wisconsin tribes worried
about new competition.

She announced her decision to end her investigation without
seeking indictments in late 1999, saying she had found no
evidence of a promise of agency action in exchange for campaign
cash and insufficient evidence to indict Babbitt.

In the report, Bruce also sharply criticizes Donald Fowler, the
former chairman of the Democratic National Committee, for phoning
deputy White House chief of staff Harold Ickes Jr. and Interior
Department officials on behalf of the opponent tribes that had
discussed donations to the DNC. Despite Fowler's "inappropriate"
phone calls that "heightened the appearance of possible
corruption," the report says, there was little evidence that
Fowler or the White House influenced Interior's decision-making.

Babbitt's chief of staff, Tom Collier, has acknowledged being the
likely recipient of Fowler's call to Interior. The report said
Collier, who later resigned and became a lobbyist for the
Shakopee Mdewakanton Sioux tribe, used a similar tactic in June
1996 while trying to persuade his old agency to reject a bid by
tribal dissidents to nullify a Shakopee adoption ordinance.
Collier arranged a meeting between Fowler and tribal officials,
delivered a $20,000 tribal contribution to the DNC on the day of
the meeting and then asked Fowler to contact Ickes, it said. Two
weeks later, the Interior Department ruled in the tribe's favor.

Although there is no evidence to prove that Fowler or Ickes took
any action in that case, the report said, "a troubling pattern
emerges from these facts which suggests that Fowler and Collier
understood from prior experience that campaign contributions
could lead Fowler to intervene with Interior via the White
House."

The report also found that the Interior Department sidestepped
its usual criteria in rejecting the application of three
impoverished Wisconsin Chippewa bands to open an off-reservation
casino at the financially tottering St. Croix Meadows greyhound
racetrack. Over the objections of some Bureau of Indian Affairs
officials, the department's rejection letter took the position
that mere local government opposition to an off-reservation
casino was a basis to reject the application.

The department's decisions on other applications before and after
Babbitt took office "do not appear to be consistent with this
policy of not imposing casinos on objecting communities," the
report said.

Bruce disclosed that her investigators traced even more campaign
donations to Democrats from seven opposing Minnesota tribes,
three Wisconsin tribes and two of their lobbyists than had been
identified previously. It said that from April 29, 1995 - the day
after leaders of the opposing tribes met with Fowler in
Washington - through Dec. 31, 1996, the tribes and two key Twin
Cities lobbyists, Patrick O'Connor and Larry Kitto, donated a
total of $415,475 to the DNC, President Clinton's re-election
campaign committee and other national Democratic organizations.
By comparison, the report said, the same interests gave a total
of $82,717 over the previous three years and four months.

Attorney General Janet Reno requested the inquiry when she was
unable to resolve perjury allegations stemming from Babbitt's
conflicting accounts of a much-publicized meeting with Arizona
lawyer Paul Eckstein, a longtime friend, on July 14, 1995, the
day the Hudson decision was issued.

Eckstein, who was representing the three Chippewa bands seeking
the casino, told congressional investigators that he went to
Babbitt's office to make a last-ditch appeal for a few more days
for his clients to be heard on the application. He said Babbitt
replied that Ickes had directed him to issue the decision that
day. Eckstein also said that after he showed Babbitt a letter in
which O'Connor had informed Ickes that the opposing tribes were
longtime Democratic contributors, Babbitt remarked that "these
Indians" have given the party about $500,000.

Babbitt initially told Sen. John McCain, R-Ariz., in a letter in
August 1996 that he had never discussed the Hudson matter with
Ickes. But when he was questioned more than a year later by the
Senate Governmental Affairs Committee, he revised his statement,
saying that he had mentioned Ickes' name - falsely stating that
the presidential aide wanted prompt action - as a polite way of
ushering his old friend out of his office.

Bruce's report said when Babbitt's revision reached the
newspapers, the White House chief of staff at the time, Erskine
Bowles, summoned him to the White House and told him "that lying
to a United States senator was unacceptable and serious
business." Bowles urged Babbitt to phone McCain and apologize.

Bruce found that, while there were no other witnesses to the
Eckstein-Babbitt conversation, there was enough corroborating
evidence to suggest that Eckstein's version was accurate.
However, it said, it was possible that Babbitt simply had a
"mistaken recollection of the specifics of the conversation" and
that the evidence was not strong enough to convince a jury that
Babbitt intended to lie.

While the investigations are over, the controversy is not. Under
a court settlement with the losing tribes last year, the Interior
Department is in the process of reconsidering the Hudson
application.



(Distributed by Scripps Howard News Service.)  � 1999 Scripps
Howard News Service.


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