Reports

The OIG investigated allegations that a Tribe wrongfully took funds from a tribally-operated boarding school funded by the Bureau of Indian Education (BIE). We also investigated whether findings and questioned costs identified in an audit of the school rose to the level of criminal misconduct. We found no evidence to indicate the Tribe wrongfully took school funds. In addition, though the BIE has issued two bills of collection to recuperate some of the questioned costs identified in the audit, we did not identify criminal misconduct associated with those findings.

The OIG investigated allegations that Smith & Marrs, Inc., an oil and gas production company, failed to report mineral production and sales from Federal leases located in New Mexico, which resulted in a loss of royalties owed to the U.S. Department of the Interior (DOI). We conducted the investigation jointly with the Bureau of Land Management’s (BLM) Special Investigations Group. We found that Smith & Marrs, Inc., failed to properly report oil and gas production and sales from Federal leases, which resulted in an underpayment of royalties and late payment interest.

Alleged Favoritism and Misconduct by BIA Supervisor

The OIG investigated allegations that two propane delivery contractors, one of which was American Indian-owned, conspired to improperly obtain U.S. Government contracts that are restricted to Indian economic enterprises under the provisions of the Buy Indian Act. Specifically, we investigated to determine if the Indian-owned company subcontracted 100 percent of contract performance to the non-Indian-owned company. We found that the Indian-owned company was awarded approximately 17 contracts, with a combined value of about $350,000, under the Buy Indian Act.

Substantiated Violations of the Buy Indian Act