Saginaw Chippewa Involved as Sen. McCain Threatens Witness with Contempt
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Senator John McCain
(EDITOR'S NOTE: Log on to http://www.indian.senate.gov for video of charges by Sen. John McCain, R-AZ, and Sen. Byron Dorgan, D-SD, of "unbelievably disgusting greed, fraud and abuse" against Indian tribes, including the Saginaw Chippewa and testimony onallegations of misuse of funds donated by tribes.)
Money donated by Indian tribes supposedly for environmental advocacy wound up paying for political ads and campaigning, two U.S. senators charged last week.
The growing scandal alleging that six Indian tribes, including the Saginaw Chippewa at Mt. Pleasant, were bilked of $82 million by lobbyists from 2001-2003 exploded in new controversy in Washington.
"Somebody has been lying to this committee and there are consequences for that," said Sen. Dorgan.
Sen. McCain repeatedly clashed verbally with lone witness Italia Federici and warned her to answer the questions and against interrupting him.
Ms. Federici is a former political aide to Interior Secretary Gale Norton and president of the Council for Republican Environmental Advocacy (CREA) that allegedly received about $500,000 in donations from Indian tribes from 2001-2003.
The senators said the evidence shows that Ms. Federici was in effect working for Abramoff who was obtaining donations for CREA from his clients, the Indian tribes. The money was then used to influence the Interior Department on Indian issues on behalf of Abramoff's clients and for political campaigning.
"This appears to be mistreatment of Native Americans and it is our obligation as a committee to continue oversight," said Sen. McCain. "As part of the committee's oversight function, we are examining instances of potential defrauding of Indian tribes."
Ms. Federici got off to a bad start in her first statement attempting to "correct" Sen. McCain. She denied all allegations and claimed "I never did one untoward thing toward Native Americans."
Sen. McCain several times called her testimony"unresponsive," asserting: "I expect you to answer the questions. There is such a thing as contempt of Congress if you don't answer the questions. I do not want a filibuster."
"There was a clear connection between contributions to your organization and the work you were doing with the Interior Department for Mr. Abramoff," said Sen. McCain. The Bureau of Indian Affairs is part of the Interior Department.
Allegations arouse that Washington lobbyists were involved in political activities to keep the Gun Lake Tribe of Pottawatomi Indians from getting approval for a new casino in Allegan County.
Previous testimony was that lobbyists attacked efforts by Michigan horse racing tracks to install gambling machines, killing so-called "racino" legislation.
Names that have surfaced in the affair include Interior Secretary Norton, Interior deputy Steven Griles, President George W. Bush, White House political adviser Karl Rove, Christian conservative leader Ralph Reed, and radical tax cut proponent Grover Norquist of Americans for Tax Reform.
U.S. Rep. Tom Delay, (R-TX) and Washington lobbyist Jack Abramoff already are under indictment by law enforcement for money laundering and other illegal activities. Abramoff associate Michael Scanlon has turned state's evidence and is testifying for the government.
At one point Sen. McCain called Ms. Federici's response to his question "an artful statement." Both senators repeatedly charged her with using her influence with Griles in Abramoff's interest.
Last week the controversy took on a whole new dimension as the committee subpoenaed records of the high profile conservative group, Americans for Tax Reform, that Sen. McCain said has been uncooperativewith the committee.
And a rancorous hour and a half long hearing spotlighted the single witness, Ms. Federici, who was threatened with contempt of Congress by both Senators McCain and Dorgan for lying, influence peddling and funneling funds donated for environmental advocacy to political activities.
"It appears that you got paid for this 'juice,'" said Sen. Dorgan, referring to her influence with the Interior Department.
Ms. Federici said she was working with the InteriorDepartment on various issues because "certain Republican Members of Congress were calling the White House" and that conservative groups were threatening advertising campaigns on proposed environmental legislation.
She said her opinion of Abramoff was favorable until she heard that he said "he was going to f---ing bury me."
The new dimension comes in an apparent threat to the non-profit status of a number of organizations that appear to be using tax exempt IRS 501 (c) 3 and 501 (c) 4status to funnel donated funds for political purposes.
The senators revealed that evidence gathered in the hearings has been referred to the Senate Finance Committee for review of the legality of the use of funds donated to tax exempt organizations for political purposes.
The hearing revealed that donations from six Indian tribes, including the Saginaw Chippewa, were used to produce a video attacking Sen. John Kerry (D-MA) on environmental issues.###
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