Babbitt cleared in casino probe

By Doug Stohlberg

and Randy Hanson

Interior Secretary Bruce Babbitt has been cleared by an independent counsel of charges that he lied to a Senate committee about his role in rejecting an Indian casino in Hudson four years ago.

Independent counsel Carol Bruce said Wednesday, Oct. 13 that she was "declining prosecution and will not seek an indictment of Secretary Babbitt or anyone else." The action confirms rumors that that began circulating during the summer.

Bruce did not spell out why her examination of 450 witnesses and 630,000 records did not find sufficient evidence for prosecution, saving the details of the investigation for the formal report she must submit to a special court panel in coming weeks.

Hudson city officials, including Mayor Jack Breault and city council members, were among those questioned in the case. Bruce's staff also interviewed Hudson-area opponents and supporters of the proposed casino.

Hudson City Attorney Bill Radosevich said the decision has no direct bearing on the Four Feathers law suit against the city of Hudson.

Four Feathers, the group proposing the casino at St. Croix Meadows Dog Track, also has a suit against Babbitt and the Department of Interior.

There is currently mediation discussions between Four Feathers and the Department of Interior. Radosevich said the outcome of those discussions is "probably the most important thing" currently going on regarding the casino issue.

"The clearing of Babbitt is merely a confirmation of what was leaked two months ago," Radosevich said. "This was one more step, with more steps to follow."

Longtime casino opponent and St. Croix County Board Supervisor Nancy Bieraugel said the clearing of Babbitt was good news.

"This report dispells any cloud hanging over the Department of Interior decision," Bieraugel said. She said she agreed with a statement from a recent Minneapolis newspaper editorial about Babbitt which said "there's not a scandal under every rock." She said the Babbitt decision underscores the fact that he is fine public servant and that he acted properly in denying the casino.

Bruce was appointed by a three-judge panel early last year to look into whether Babbitt made false statements to a Senate committee in October 1997. Babbitt told the committee that his decision to reject a casino application by Four Feathers Joint Casino Venture had nothing to do with support promised to the Democratic Party by Indian tribes opposed to the casino.

Babbitt said the casino was rejected because of local opposition and departmental guidelines were followed in making the decision.

An old friend of Babbitt's who was lobbying for the tribes that proposed the casino (the Lac Courte Oreilles, Red Cliff, Mole Lake-Sokaogon bands of Chippewa Indians) charged that Babbitt told him that he was under pressure from the White House to deny the casino.

Babbitt has denied all wrongdoing. He told reporters that he was gratified that the grand jury and independent counsel had determined that charges weren't justified in the matter.

Four Feathers spokesman Mark Goff said the decision not to indict Babbitt won't affect the casino partnership's lawsuit against the federal government. The lawsuit had been delayed for a year and a half, pending the independent counsel's investigation, but will now proceed.

"It affects us in a positive way, in that it allows the civil suit to move forward," Goff said. "If charges had been brought against Babbitt, it probably would have meant another stay, delaying our case another 18 to 24 months."

The Four Feathers suit against the Babbitt and the Department of Interior is a civil action. Likewise, is the case against he city of Hudson.

"There is a big difference between criminal and civil suits," Goff said. "The only chance of resolving this issue in our favor is in civil court."

He declined to talk about the current talks between the two sides, other than to say the Babbitt decision would have no bearing. Goff said the talks began in July and, although not offering any exact timetable, said he thought six months was a reasonable length of time.

"After a certain period of time, we'll see if things are looking successful," Goff said. "Six months seems reasonable. We certainly have every intent to pursue our interests, and that would include winning approval for the casino."