Lots of dollars, no sense, in grants to Seminoles

The Seminole Tribe of Florida is by no means the only dubious recipient of federal grant money, but the $80-million it has pocketed in five years as it profits from a lucrative gambling empire is ripe for a congressional inquiry.

The first question should be posed to the U.S. Justice Department, which awarded the tribe $370,000 in tax money in 2005-06 to help it police the casino properties. The tribe's grant application was explicit, citing "tremendous growth in calls for service because of people (frequenting) hotels, nightclubs and casinos on the Tampa and Hollywood reservations."

So the Justice Department provides security for casinos? Would it do the same for Harrah's?

These findings come not from government auditors but the South Florida Sun-Sentinel. Incredibly, many of the federal bureaucrats defended their actions. Here's what Justice spokesman Gilbert Moore told the Sun-Sentinel: "Need has never been a consideration for our grants."

Neither, apparently, is common sense. The Seminole Tribe, or more aptly Seminole Inc., rakes in more than $1-billion a year in a growing gambling enterprise that may soon add full-scale slots and blackjack. As the Sun-Sentinel reported, the money flows so freely that every tribe member receives a $120,000 annual share. The tribe's five council members, meanwhile, are buying mansions, jets and Lexuses. They have spent $280-million since 2000 from a discretionary fund they alone control.

Against that backdrop of newfound wealth and opulence, the federal grants from agencies such as DOJ and the Department of Housing and Urban Development are all but indefensible. Much of the HUD money was based on poverty levels that the tribal members' gambling shares alone exceeded. The tribal council also lacks the kind of accounting controls and ethical standards that should be a prerequisite for any federal grant.

As these grants relate to federal policies designed to help Indian reservations, this gets even worse. The Sun-Sentinel found that in 2003, the latest year with full available financial records, the Seminoles got $5,824 per person in various types of federal grant money. The Navajo Nation, with no casinos and half its members living below the poverty line, got $2,097.

This may be no worse than other government waste, ranging from unnecessary farm subsidies to lucrative pet projects. But the Seminole Tribe has become a very lucrative business, and this is basically corporate welfare. Congress needs some answers.

[Last modified December 2, 2007, 21:50:18]