2 probes target ranch program

T he Tribal Ranches Program is under investigation by two watchdog agencies, including the white-collar crime unit, that are looking into allegations of mismanagement and possible improper payments to an outside contractor.

Not enough information has been released on either investigation to determine the scope of the concerns, however, and it is unclear whether the allegations are based on fact or ill will between two bureaucrats.

In January 2008 the Navajo Nation prosecutor's office started investigating the ranch program. Specifically, it was asked by the Resources Committee to examine spending to maintain and repair stock wells - a regular sore spot among ranchers who claim the stock wells are often out of order.

The tribe allegedly paid upwards of $56,000 a month to a non-Navajo contractor to maintain and repair the 43 windmills that power the wells.

At about the same time, the Government Services Committee asked the Navajo Nation's auditor general to audit the ranch program. The committee requested the audit when it reviewed amendments to the ranch program's plan of operation. GSC oversees the operating plans of tribal agencies.

The Resources Committee has specific oversight responsibility for the Tribal Ranch Program.

On Monday, Chief Prosecutor Roger Shirley, who oversees the white-collar crime unit, and auditor Helen Brown reported to the Resources Committee that they have combined their investigations.

Brown explained that after a review of the ranch program, the auditors agreed that they should include a look at the program's maintenance and repair of windmills.

According to Ella Wilson, supervising prosecutor for the white-collar crime unit, ranch program manager Fritz Roanhorse ignored a cease-and-desist order aimed at stopping the flow of money to the well contractor until investigators can figure out what the tribe is paying for.

Wilson identified the contractor in question as Double J Well Service of Milan, N.M.

To pay or not

In an April 13 memo, Wilson stated, "This office issued a cease and desist order by memorandum to the program early last year to stop all payments to (Double J Well Service) but the order was promptly disregarded."

"I thought that Roanhorse stopped all (windmill) contracts," said committee member Norman John II (Twin Lakes), his voice rising in frustration.

Roanhorse said Wednesday that he checked with prosecutors and they told him it was OK to pay bills incurred before the order was issued.

Shirley, the chief prosecutor, told the committee that he subsequently spoke to President Joe Shirley Jr. (no relation) about the problem and that the president "believes" Roanhorse is now complying with the order.

The Navajo Times contacted George Hardeen, Shirley's spokesman, Wednesday for comment. Hardeen said he would check with the president and provide a statement as soon as possible.

Brown said the auditors were told it was not Roanhorse but his former supervisor, John Blueyes, who ignored the cease-and-desist order and authorized continued payments to Double J Well Service.

Blueyes retired last May as director of the Agriculture Department.

He said in a telephone interview Wednesday that the payments he authorized to Double J were for invoices dated prior to the cease-and-desist order.

"All this started with Fritz Roanhorse's inability to process invoices for Double J," he said, "and then Fritz went behind my back to the Resources Committee with allegations of illegal activities, such as work not being done, used pipes not being returned, and missing pipe."

Roanhorse said he was only relaying complaints made by the leaseholders on tribal ranches in Eastern Navajo.

Blueyes predicted the auditors will find that Roanhorse's allegations against the Double J are not specific because he doesn't know where all the ranch windmills are, let alone whether work was done on them or what type of work is needed. Roanhorse has headed the ranch program since the mid-1990s.

Blueyes added that when the auditors asked Roanhorse for specific answers they found out he lacks the "financial and management abilities" to run the Tribal Ranch Program, which includes the windmills.

"I'm not trying to clear myself," Blueyes said. "I did my job. I compensated a vendor for work that was based on a contract. And if payment was 120 days delinquent and I told Fritz Roanhorse to pay and he didn't, then I had to bite the bullet and pay them through the proper process. And if there were any violations then the finance department would have caught it."

Roanhorse denied that any invoices went unpaid for the length of time alleged by Blueyes.

Blueyes said the $56,000-a-month figure likely represented a lump sum covering several past-due invoices.

He noted that all the Double J invoices contained detailed information on the work being billed for, and said the vendor terminated its contract with the tribe at the end of 2007.

'Bad problem'

Double J owner Johnny Elkins said Wednesday that it was Blueyes, not Roanhorse, who finally made sure he got paid.

"Fritz never helped us," Elkins said.

He said that he's aware of the investigations into the ranch program and that his company's name has come up.

"I haven't done anything with (Roanhorse) for two years," Elkins said. "I wouldn't do anything for him or the tribe. They have an extremely bad problem with management and other things.

"It's too much of a headache for me," he added. "I have enough problems. I hope they get it all straightened out."

Brown said that with 95 percent of the audit fieldwork completed, the auditors thought they would be issuing a draft report in the next few days.

But then they learned that Roanhorse and his staff would be unavailable to meet with auditors on "follow-up issues." According to Roanhorse, they are all at the annual Natural Resources Division conference, taking place at Buffalo Thunder Resort & Casino north of Santa Fe.

On Monday Roanhorse declined to comment on the twin investigations of his program.

Brown said the draft audit of the ranch program would be completed at the end of the month and the final report would be finished in early May.

Chief Prosecutor Shirley did not provide a date for the completion of his agency's investigation, saying that criminal investigations are "tedious" because the investigators must "turn over every stone" in search of evidence.

On a related subject, Roanhorse has yet to fulfill a formal request for information on the program, filed last month by the Navajo Times under the Navajo Nation Privacy and Access to Information Act. Roanhorse has acknowledged verbally that he was advised by legal counsel that the information being sought is a public record.