Category Archives: Trust Fund

An investigation into living conditions in the Navajo nation of the southwestern United States

Correspondent Nina Donaghy takes a look at why the Navajo Nation is living in ‘third world’ conditions in the middle of the United States.

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4/27/2012 Media Release: Forgotten People go to United Nations to secure human right to housing and water

4 27 2012 FP Media Release Right to Water and Housing“>

4/27/2012 Statement of Leonard Benally to Mr. James Anaya, Special Rapporteur on the Rights of Indigenous Peoples, OHCHR

4 24 2012 Leonard Benally_Speaker FP_Self Mr James Anaya“>

11/10/2011 Navajo Times: Funds available for Freeze families, panel says

11/10/2011 Navajo Times: Funds available for Freeze families, panel says By Bill Donovan, Special to the Times. WINDOW ROCK: The Navajo-Hopi Land Commission reports that it has nearly $4 million available to start helping Navajo families in the former Bennett Freeze area. “This is the latest funding for the recovery of the area,” the NHLC office stated in a recent report to the Navajo Nation Council. The money is from an escrow account. For 30 years, 1966 to 1996, Navajo families in the Bennett Freeze area were prohibited from making improvements to their homes because of federal restrictions put in place at the behest of the Hopi Tribe, which claimed prior rights to the land.

Meanwhile, land-use payments were held in escrow. In 2010, following a federal settlement lifting the Freeze, some $6.3 million was released to the Navajo Nation to benefit Navajos still residing there.

The land commission hasn’t yet approved the allocation of these funds, prompting the emergence of The Forgotten People, a grassroots group formed to demand an accounting of money spent and to push for needed improvements to the area.

The report to the Council said some $3.9 million of that $6 million has now been allocated to improve or replace dilapidated homes.

The commission also reported that lease fees from the Navajo Nation Gaming Enterprise, which is building the Twin Arrows Resort Casino on land acquired under the Navajo-Hopi Land Dispute agreement, are beginning to roll in.

Commission officials said the land had been purchased for about $7 million with the commission and the casino paying half of the cost. The land was then taken into ownership by the commission and the casino agreed to make annual payments to the commission for use of the land.

The first payment of $375,000 was made in June, said Raymond Maxx, director of the NHLC office.

10/27/2011 Navajo Times: Bogus bonuses – 2 Tuba City officials removed for scamming illegal bonuses

10/27/2011 Navajo Times: Bogus bonuses – 2 Tuba City officials removed for scamming illegal bonuses By Bill Donovan, Special to the Times: Two officials for Toh Nanees Dizi Chapter has been removed from office in the investigation into five officials accused of illegally paying themselves bonuses totaling over $80,000. Jimmy Holgate, who served on the chapter governing council, was removed on Tuesday when he failed to show up for a hearing before the Office of Hearings and Appeals. The hearing included witnesses who had traveled all of the way from Tucson. As a result of the default judgment, Holgate will have to reimburse the chapter $7,644 and cannot run for public office for five years.

Last week, Helen Herbert came to the tribe’s ethics Office and admitted she had defrauded the chapter.

She too was on the governing council. She agreed to reimburse the chapter $10,000 by paying $200 a month to the Ethics Office.

That still leaves the top three chapter officials facing hearings.

Robert Yazzie, council vice president, was scheduled to go before OHA on Oct. 20. He is accused of illegally taking $20,180.

Council President Max Goldtooth is scheduled to have a hearing Nov. 9 on charges of misappropriating $17,200.

The hearing for Secretary-Treasurer Charlene Nez, who is accused of taking $26,668, is scheduled Nov. 30.

All five are accused of giving themselves illegal bonuses for doing ordinary chapter business. For example, each got a $3,000 Christmas bonus as well as anywhere from $1,000 to $3,000 for signing ordinary resolutions approved by the chapter.

The charges filed by the Ethics Office said the officials also violated tribal law by failing to present the payments for approval by chapter members before the checks were issued

10/17/2011 Navajo Times: Changes aim to protect cash from spending

10/17/2011 Navajo Times: Changes aim to protect cash from spending By Marley Shebala: There’s nearly $45 million in the tribe’s Undesignated Unreserved Fund but it may not be there for long if the Navajo Nation Council approves amendments to the Appropriations Act next week. Twelve members of the Nabik’yati’ Committee voted Tuesday to give the amendments a do-pass recommendation, making its passage a good bet during the Council’s fall session next week. The amendments, sponsored by Lorenzo Curley (Houck/Klagetoh/Nahata Dziil/Tse si’ani/Wide Ruins) would expand Ð instead of waiving – rules limiting the Council’s ability to spend the money, most of which is a one-time cash infusion from settlement of a lawsuit against Peabody Energy.

The intention is to protect the money from the chaotic methods of passing supplemental spending bills used in past years, said one Council leader, although some provisions would arguably reduce some restraints imposed under the current law.

The amendments moved at warp speed through the committee process, with the Budget and Finance Committee and the Law and Order Committee meeting during the Nabik’yati’ Committee’s lunch break to review the legislation, which they both gave a “do-pass” recommendation.

The proposed amendments would add language to the Appropriations Act that would allow the Council to make supplemental appropriations earlier in the budget year.

The current budget year started Oct. 1 and ends Sept. 30, 2012.

The tribe’s spending law now prohibits the Council from making supplemental appropriations until projected revenues are met and the UUF, the tribe’s rainy day fund, has a minimum balance equal to 10 percent of the prior fiscal year’s budget.

In this case, that would be $17 million since the 2011 budget was $170 million.

The projected revenues for the 2011 budget were not realized until August, two months before the end of the budget year.

The Appropriations Act also mandates that any amendments to it must come from the Council’s Budget and Finance Committee, of which Curley is a member.

In presenting his bill to the committee Tuesday, said the reason for the amendments is to update the law and move supplemental appropriations legislation more efficiently through the legislative review process.

“These amendments make it simpler and easier for the Council to serve the needs of more constituents,” he added.

B&F committee Chair LoRenzo Bates (Nenahnezad/Newcomb/San Juan/T’iistoh Sikaad/Tse Daa K’aan/Upper Fruitland) said in a separate interview that the move to streamline the process for supplemental spending began as soon as the delegates learned that the UUF, which for the last couple of years has been millions in the red, now contained close to $40 million.

Bates, who has championed spending restraint during his years in the Council, said the amendment process was initiated to prevent a repeat of past years where last-minute spending requests would come from the Council floor with little or no explanation or justification.

Approval depended more on the political clout of the sponsor than on the proposal’s merit, with massive expenditures involving a little sugar for every chapter being particularly popular.

Bates also noted that the law currently requires the B&F Committee to hold hearings on the annual budget and supplemental spending bills, although the Law & Order Committee recommended that this responsibility be ceded to the Nabik’yati’ Committee, to which all the delegates belong.

Bates said that the committee’s proposed supplemental spending process would set priorities for allocating funds, such as the Peabody settlement, that are a one-time windfall.

Among the potential competition for supplemental spending are all three branches of the tribal government, which got significantly less than their stated need in the current budget.

According to President Ben Shelly’s 2011 budget message, the executive branch is short by about $65 million.

The much-smaller judicial branch’s unmet needs totaled about $1.6 million, according to previous statements by Chief Justice Herb Yazzie.

10/20/2011 Navajo Times: Delegates say lawyer went too far with reform bill

10/20/2011 Navajo Times: Delegates say lawyer went too far with reform bill by Marlley Shebala: Should the people vote on proposed changes to the Navajo Nation Government Development Commission Act? The Navajo Nation Council’s attorney, Edward McCool, says yes. But the chairman and vice chairman of the Council’s Subcommittee on Government Reform say no. The disagreement between McCool and the subcommittee unfolded when Chairman Leonard Tsosie and Vice Chairperson Jonathan Nez saw that McCool had written the subcommittee’s proposal to change the commission as a voter referendum rather than an amendment to the act. Then he posted the referendum legislation on the Council’s Web site for public comment on Oct. 6.

Tsosie and Nez said in separate interviews this week that they believe McCool overstepped his authority, and that the subcommittee is expected to meet Monday, Oct. 24, at 1 p.m. in the Council chamber to discuss his actions.

Both delegates emphasized that the subcommittee had nothing to do with McCool’s decision to make their bill a request to the Council for a referendum.

“His clients tell him to do one thing and he does the opposite,” Tsosie fumed. “He’s just making our life harder.”

McCool said Tuesday that he was asked to draft legislation and he did that.

On Sept. 20, McCool sent a memo to Nez questioning the subcommittee’s plan to amend the law and reduce the commission from 12 members to five, eliminating representation for several groups in favor of putting more delegates on the panel.

McCool stated in his memo that the Navajo Nation Supreme Court noted the “significance” of the commission and its office in a July 2010 ruling: “Of all the entities established by the Title II Amendments, the Commission on Government Development and the Office of Navajo Government Development are the sole entities established according to the wishes of the people expressed through the coordinator of the Government Reform Project.”

Power to the people

McCool also quoted the ruling’s warning for the Council not to usurp the right of the people to determine their preferred form of government, which the commission was set up to determine.

The high court stated that “the power over the structure of the Navajo government is ultimately in the hands of the people and (the Council) will look to the people to guide it” and “that the power of the people to participate in their democracy and determine their form of government is a reserved, inherent and fundamental right expressed in Title I of our Dine Fundamental Law and the Navajo Bill of Rights,” McCool quoted in his memo.

Tsosie said the subcommittee already had a discussion with McCool about whether the Supreme Court’s decision meant the subcommittee’s amendments to the commission had to go before the people as a ballot referendum.

“We didn’t ask for (referendum) language,” Nez said Tuesday. “The chief legislative counsel has his own interpretation of the Supreme Court decision. We, as delegates, have our own interpretation. We’re following the Supreme Court order.”

10/20/2011 Navajo Times: Former MacDonald prosecutors replace Balaran

10/20/2011 Navajo Times: Former MacDonald prosecutors replace Balaran By Bill Donovan, Special to the Times: The Special Division of the Window Rock District Court has decided to go with experience in replacing Alan Balaran as special prosecutor. The division last week approved hiring Santa Fe law firm of Rothstein, Donatelli, Hughes, Dahlstrom & Schoenburg as the new special prosecutor. “The Rothstein law firm, led by attorneys Eric Dahlstrom and Richard Hughes, will continue the investigations into alleged misuse of discretionary funds by high ranking officials of the Navajo Nation,” a press release from the attorney general’s office stated.

The firm will also look into allegations of mismanagement of funds in the OnSat, BCDS and Tribal Ranch Program and other matters assigned by the special division, which is composed of three judges.

Balaran, according to the press release, has agreed to assist with the transition.

The law firm was instrumental in the late 1980s in the prosecution of then chairman Peter MacDonald Sr., his son Rocky and others in MacDonald’s administration for a variety of crimes while in office.

Dahlstrom, who has been a member of the Navajo Nation Bar Association for at least 30 years, was deputy attorney general of the Navajo Nation from 1987 through 1991.

Hughes has also been a member of the Navajo bar for at least 30 years and was one of the lead prosecutors in the MacDonald case.

In the press release, the attorney general’s office said it was “fully supportive” of the appointment. Both the current attorney general, Harrison Tsosie, and his predecessor, Louis Denetsosie, are named defendants in the civil suit filed by Balaran.

The attorney general’s office stated that it “is fully committed to the resolution of these matters pursuant to Navajo laws, principals and cultural values.”

Dahlstrom, interviewed by phone at his Phoenix office, said Wednesday that the firm is not making any statements at this time about how it plans to proceed in the investigation and the prosecution of those who have already been named in civil suits filed by Balaran.

10/17/2011 AZ Daily Sun: Native American leader Elouise Cobell dies at 65

FILE - In a Dec. 8, 2009 file photo Elouise Cobell, a member of the Blackfeet Tribe from Montana who was the lead plaintiff in the class-action lawsuit regarding the U.S. government's trust management and accounting of over three hundred thousand individual American Indian trust accounts, left, is greeted by Department of the Interior Secretary Ken Salazar following an announcement on the settlement of Cobell lawsuit at the Interior Department in Washington, A spokesman for Cobell says the Blackfeet woman who led a 15-year fight to force the U.S. government to account for more than a century of mismanaged Indian land royalties has died. She was 65. (AP Photo/Manuel Balce Ceneta/File)

10/17/2011 AZ Daily Sun: Native American leader Elouise Cobell dies at 65 Elouise Cobell, the Blackfeet woman who led a 15-year legal fight to force the U.S. government to account for more than a century of mismanaged Indian land royalties, died Sunday. She was 65. Cobell died at a Great Falls hospital of complications from cancer, spokesman Bill McAllister said.

Cobell was the lead plaintiff in a lawsuit filed in 1996 claiming the Interior Department had misspent, lost or stolen billions of dollars meant for Native American land trust account holders dating back to the 1880s.

After years of legal wrangling, the two sides in 2009 agreed to settle for $3.4 billion, the largest government class-action settlement in U.S. history. The beneficiaries are estimated to be about 500,000 people.

Asked what she wanted her legacy to be, Cobell said in a 2010 interview with The Associated Press that she hoped she would inspire a new generation of Native Americans to fight for the rights of others and lift their community out of poverty.

“Maybe one of these days, they won’t even think about me. They’ll just keep going and say, `This is because I did it,'” Cobell said. “I never started this case with any intentions of being a hero. I just wanted this case to give justice to people that didn’t have it.”

President Barack Obama released a statement that said Cobell’s work provided a measure of justice to hundreds of thousands of Native Americans, will give more people access to higher education and will give tribes more control over their own lands.

“Elouise helped to strengthen the government to government relationship with Indian Country, and our thoughts and prayers are with her and her family and all those who mourn her passing,” the statement read.

Cobell said she had heard stories since she was a child of how the government had shortchanged Native Americans with accounts for royalties from their land that was leased for resource development or farming.

She became outraged when she actually started digging into how much money the government had squandered that belonged people who were living in dire poverty on the Blackfeet reservation in northwestern Montana, she said.

She realized the amount mismanaged since the 1880s could be hundreds of billions of dollars. She said she tried for years working with two U.S. government administrations to resolve the dispute in the early 1990s, then decided to sue with four other Native Americans as plaintiffs when no progress was made.

The government dug in. Over the next 14 years, there were more than 3,600 court filings, 220 days of trial, 80 published court decisions and 10 appeals until the 2009 breakthrough.

Under the settlement, $1.4 billion would go to individual Indian account holders. Some $2 billion would be used by the government to buy up fractionated Indian lands from individual owners willing to sell, and then turn those lands over to tribes. Another $60 million would be used for a scholarship fund for young Indians.

Cobell spent the next year shuttling back and forth between her home in Browning to Washington, D.C., to lobby individual congressmen to approve the deal. She also logged thousands of miles traveling across Indian country to explain the deal to the potential beneficiaries.

She found unexpected resistance among some Native Americans. They questioned why it was so little, how much would be going to her and they attorneys or why it didn’t include a more complete accounting of what happened to the money.

Congress approved the deal and Obama signed it in December of 2010, a year after it was first proposed. A federal judge approved the settlement in June, though there are still appeals of the settlement pending.

Cobell discovered she had cancer just a few weeks before the judge’s approval in June. She traveled to the Mayo Clinic in Rochester, Minn., for surgery.

Cobell was born with the Indian name Little Bird Woman, a great granddaughter of the famous leader Mountain Chief. She grew up with seven brothers and sisters on the Blackfeet reservation.

She graduated from Great Falls Business College and received honorary degrees from Montana State University, Rollins College and, earlier this year, Dartmouth College.

She was the Blackfeet nation’s treasurer for 13 years, and in 1987 helped found the first U.S. bank to be owned by a tribe, the Blackfeet National Bank, which is now the Native American Bank.

Cobell was the executive director of the nonprofit Native American Community Development Corp., which promotes sustainable economic development in Indian Country.

She won a $300,000 “genius grant” from the John D. and Catherine T. MacArthur Foundation in 1997 and used most of the money to help fund the lawsuit.

Cobell lived on a ranch 30 miles south of Browning with her husband Alvin. Her only son, Turk, lives in Las Vegas with his wife Bobbie and their children Olivia and Gabriella.

She has a brother and two sisters who live in Browning and a third sister who lives in Seattle.

10/14/2011 Gallup Independent: Law firm selected as special prosecutor

10/14/2011 Law firm selected as special prosecutor By Kathy Helms, Dine Bureau, Gallup Independent: WINDOW ROCK – The law firm that successfully prosecuted former Navajo Nation Chairman Peter MacDonald and other tribal officials 20 years ago has been named to succeed Alan Balaran as the Nation’s special prosecutor. Deputy Attorney General Dana Bobroff announced Thursday that the Special Division of Window Rock District Court appointed the nationally prominent Rothstein Law Firm to continue the investigations into Navajo Nation Council delegates’ use of discretionary funds, alleged crimes by tribal officials involved in contracts or payments to OnSat Network Communications and BCDS Manufacturing, the tribal ranch program and other matters assigned to the Special Division.

US News & World Report, in its 2010 ranking of “Best Law Firms,” gave the Rothstein Law Firm (Rothstein, Donatelli, Hughes, Dahlstrom, Schoenburg & Bienvenu LLP) the highest possible ratings both nationally and regionally.

Though Bobroff was not at liberty to release the name of Balaran’s successor when asked Wednesday, she said she thought the Navajo people would be reassured by the Special Division’s choice.

The Rothstein Law Firm was the first firm ever retained by the Special Division as special prosecutor. Balaran was notified a little more than a month ago by the three-judge Special Division that his contract would not be renewed.

“Mr. Balaran has graciously agreed to assist with the transition of the special prosecutor cases prior to beginning his new assignment with the federal court,” Bobroff stated in the press release. Balaran received his sixth appointment in August to serve as U.S. District Court special master for victims of the 1983 Beirut Marine barracks bombing.

Asked Thursday about his successor, Balaran said, “The firm comes with a superlative reputation.”

The firm’s Richard W. Hughes and Eric N. Dahlstrom, both of whom have been members of the Navajo Nation Bar Association for at least 30 years, will lead the special prosecutor investigations.

Hughes, whose office is in Santa Fe, started the firm’s Indian law practice. Prior to becoming a partner in September 1988, he spent eight years in legal service on the Navajo Nation and was a lead attorney in the MacDonald prosecutions, according to the firm’s website. His areas of practice include Indian law and civil litigation.

Dalhstrom, whose office is in Tempe, was Navajo Nation Deputy Attorney General from 1987 through 1991 and has practiced Indian law for more than 30 years, representing tribes in Arizona and Wisconsin. His areas of practice include Indian law, natural resources and civil litigation.

“The Office of the Attorney General is fully supportive of the appointment of the Rothstein Law Firm and stays fully committed to the resolution of these matters pursuant to Navajo laws, principles and cultural values – which requires that those who are proven to have engaged in wrongdoing are held accountable,” Bobroff stated.

“The Office of the Attorney General has the utmost confidence in the Navajo Nation’s system of justice that those who have not engaged in wrongdoing will have their names cleared,” she said.

Nearly a year ago, on Oct. 20, 2010, former Navajo Nation Attorney General Louis Denetsosie announced that Balaran had filed criminal charges against more than 70 of the 88 delegates from the 21st Navajo Nation Council. The charges alleged conspiracy, fraud, forgery, abuse of office and theft of funds ranging from a low of $650 to a high of $279,175.

This past May, after being stymied in his efforts to prosecute the cases, Balaran filed a plan with the Navajo Nation Supreme Court to streamline the court process by withdrawing the outstanding criminal complaints without prejudice – meaning they can be refiled – against all but a few defendants.

In place of the criminal complaints, around the end of July Balaran filed a single civil complaint charging more than 80 current and former Navajo Nation officials with breach of fiduciary duty, including Denetsosie and current Attorney General Harrison Tsosie, who has formally delegated all his responsibilities concerning the special prosecutor to Bobroff.