Top officials benefit from bonus purchases
By Marley Shebala
Navajo Times
WINDOW ROCK, Jan. 7, 2011
The Budget and Finance Committee gave away three tribal government vehicles to Shirley and a vehicle each to Morgan, Shelly and Sandoval.
But Shirley, Shelly and Morgan had to pay for tribal government property, which they received at a 99 percent discount.
According to the committee's legislation, which the Navajo Times received anonymously, Shirley paid $2,100 for more than $52,000 in tribal property.
Shelly and Morgan each paid a flat $1,000 for tribal property. The property for Shelly was valued at more than $24,000. For Morgan, its value was more than $21,000.
The Navajo Times left phone messages and e-mails for Shirley, Shelly, Morgan and Sandoval but at press time on Wednesday, Shirley and Sandoval had not contacted the Navajo Times.
On Wednesday, Deswood Tome, Shelly's spokesperson, said Shelly was in Santa Fe meeting with Attorney General Gary King.
Tome confirmed that the committee had approved a tribal vehicle as a bonus and the purchase of tribal property for Shelly.
But he noted Shelly had not accepted the committee's "offer."
Tome added that the vehicle is not free because the cost of the vehicle will be reported as income and Shelly will be required to pay federal taxes on it.
Also on Wednesday, Morgan's spokesperson, Alastair Bitsoi, issued a brief statement that noted that Morgan was unavailable for comment because he was busy with inaugural activities, approving the agenda for a Jan. 7 special session, last minute committee meetings, and preparing exit reports for the next speaker.
Bitsoi added that Morgan's vehicle has more than 60,000 miles on it.
Committee chairperson Lorenzo Bates (Upper Fruitland) said on Wednesday that the committee's approval of vehicle bonuses for Shirley, Shelly, Morgan and Sandoval was done according to tribal statutes, with the guidance of Controller Mark Grant, and in recognition of the precedent set by past B&F committees and administrations.
Bates emphasized that the committee treated each of the elected officials fairly and equally.
"If the president, vice president or speaker felt that the committee's actions were improper, they had the opportunity to speak up," he added.
Bates said that Shirley, Shelly and Morgan attended the committee meeting on Tuesday and did not oppose the committee's actions.
He added that it was the first time that a chief of staff received a tribal vehicle assigned to him or her.
Bates explained that the committee set a precedent by approving a vehicle as a bonus for Sandoval, which they decided to do because Sandoval was "part of the outgoing administration."
He noted that another precedent set by the committee was directing Shirley, Shelly, Morgan and Sandoval to pay the taxes on the vehicles to the Internal Revenue Service, which in the past was paid by the tribal government.
Bates explained that the appraised value of the vehicles would be included as income in the 2011 taxes of Shirley, Shelly, Morgan and Sandoval.
The three vehicles that Shirley received as a bonus were a 2009 Chevrolet Silverado crew cab 4WD, which had an appraised value of $21,850, a 2007 GMC Yukon 4WD, which had an appraised value of $14,610, and a 2003 Chevrolet Explore Van, which had an appraised value of $3,300.
Shelly's vehicle bonus was a 2007 GMC Yukon 4WD, which was appraised at $13,950.
Morgan received a 2009 Chevy Suburban $WD, which was appraised at $24,400.
The vehicle that Sandoval received is a 2007 GMC Yukon 4WD, which was appraised at $12,840.
The Navajo Times went to the executive offices to photograph the vehicles and could only locate Sandoval's vehicle by its VIN number. But the number matched a 2007 Chevy 4WD Suburban SL with leather seats, Bose premium stereo, GPS, luggage rack and running boards.
The Dec. 10, 2010, $12,840 appraisal of Sandoval's vehicle by the tribal property management department, which is under the controller's officer, did not include the amenities. It did cite the National Automobile Dealers' Association appraisal of a 2007 GMC Yukon 4WD as $17,200 and gave a mileage discount of $3,800, plus a $4,360 discount for "wear & tear," which brought the appraised value to $12,840.
The Navajo Times checked with the National Automobile Dealers' Association and found that Sandoval's vehicle with its amenities was appraised at $26,600.
Delegate Ervin Keeswood (Tse Daa Kaan) sponsored the three separate legislations for Shirley to purchase the three tribal vehicles that were assigned to him, for Morgan to purchase the one vehicle assigned to him and for Shelly to purchase the one assigned to him.
Delegate Danny Simpson (Huerfano) sponsored the legislation for Sandoval to purchase his vehicle.
According to committee member Lorenzo Curley (Houck/Lupton/Nahata Dziil), committee member Hoskie Kee (Littlewater/Baca-Prewitt/Casamero Lake) led the amendments for the four vehicle to be bonuses.
Curley, who voted against the vehicles being bonuses, said he felt that it violated the ethics in government law regarding the limit of gifts.
And he said Shirley, Shelly, Morgan and Sandoval make enough money to buy the tribal vehicles.
Curley said that he also voted against Shirley, Shelly and Morgan buying tribal property at a huge discount.
He noted that the 90 percent depreciation discount provided by the property office for the furniture and other items was "suspicious."
According to Shirley's physical inventory sheet, the committee approved his purchase of $5,276.26 worth of furniture and other items (full bedroom sets, dinette set, home theater w/DVD, 3-ipads, Yeibeichei rug, vacuums, vinyl record to cassette to CD equipment, sofas, tables, washer, drier, 2 sheds, mirrors, tread mill, microwave oven, 2-color TVs, tables, chairs, luggage, etc.) for $2,100.
The actual cost of the furniture and other times that is cited in the inventory sheet amounted to more than $52,000.
According to Shelly's inventory sheet, the committee approved his purchase of $2,479.35 worth of furniture and other items (desk, chest of drawers, chairs, hutches, beds, media cabinet, dressers, washer, dryer, treadmill, new computer equipment) for $1,000.
The actual cost of the furniture and other times amounted to more than $24,000, which included $4,536.75 of brand new computer equipment and software, which the property office discounted to $453.68.
According to Morgan's inventory list, he was allowed to buy $2,616.95 worth of furniture and other items (digital camera, 2 laptops, new 42 inch flat screen TV, etc.) for $1,000. The actual cost of the tribal property was more than $21,000.
Simpson sponsored the legislation for Shirley and Shelly to purchase tribal property.
Delegate Young Jeff Tom (Mariano Lake/Smith Lake) sponsored the legislation for Morgan to buy tribal property.
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