American Notes INDIANS

Never had an Indian leader fallen more ignominiously. Last week, 18 months after being suspended as chairman of the 180,000-strong Navajo Nation, Peter MacDonald, 61, was convicted on dozens of bribery, ethics and conspiracy charges by a tribal court. MacDonald's son Peter Jr., 36, was also found guilty. Prosecutors convinced a jury that the two men had solicited more than $400,000 in bogus loans, consulting fees, plane rides and other favors from businesses seeking lucrative Navajo contracts. Tribal leaders expressed pride that the judgment had been rendered by a sovereign tribal court and relief that the controversial trial had finally come to a conclusion.

During his 13-year stewardship, the charismatic and flamboyant MacDonald had sought to modernize the Navajos' 17 million-acre reservation, which is spread over Arizona, Utah and New Mexico, by aggressively exploiting its oil, gas and coal reserves and by developing shopping centers. He faces up to 16 years in a tribal jail and as much as $20,000 in fines -- plus two more trials on other charges. MacDonald's conviction throws next month's tribal elections into confusion because Navajo leaders must now decide whether or not MacDonald will be permitted to run to retain his leadership post.