Citizen group sues over discretionary funds

The grassroots citizen group Hada'a Sidi has filed a lawsuit challenging the Navajo Nation Council's propensity to reroute tribal money to discretionary spending over which there are few controls and even less transparency.

The lawsuit, filed Aug. 26, specifically targets the Navajo Nation Controller Mark Grant, as holder of the tribal purse strings. It asks that he be enjoined from making disbursements of discretionary funds appropriated by the council in April, and give a full accounting of the money that has been spent.

The complaint also lists unnamed other officials in charge of council spending, a common technique to make sure there are no loopholes that could thwart the intent of a court order.

Hada'a Sidi consists of leaders from several Navajo grassroots groups including former tribal president Milton Bluehouse Sr., Elouise Brown of Dooda Desert Rock, former Arizona state senator James Henderson Jr., and Raymond Yellowman of the Bennett Freeze area Forgotten Ones.

In July, the group submitted its notice of intent to sue to President Joe Shirley Jr.'s office and the tribe's Department of Justice. The group hinted strongly at the time that it hoped the threat would prompt a conversation regarding the council's spending habits.

"We gave them 30 days," Bluehouse said. "Nothing happened, so we just filed in court."

The suit addresses a $4.5 million spending bill the council passed in April. The bill, which started as an appropriation for $84,674 for the Division of Human Resources, and ballooned with amendments giving millions in discretionary funds to the council, speaker and president's office. The council drained the Personnel Lapse Fund to fund the measure.

The suit does not address a $10 million spending bill the council passed in July using money that would normally feed into the fiscal 2010 Personnel Lapse Fund. That bill led to a projected $8 million deficit the tribe will have when the 2009 fiscal year ends Sept. 30.

Although the plaintiffs have previously said they could expand their complaint to include future legislation, for now they will focus on the April resolution, they say, it embodies all the abuses that have come to typify council spending.

"The appropriation was adopted contrary to law," the suit states. "It is invalid and the court must enter orders to assure that the assets and monies of the Navajo Nation are properly protected."

The complaint, prepared by Albuquerque attorney James Zion, refers to Diné Fundamental Law, the traditional moral code incorporated in the tribal code. That law emphasizes public participation in government.

"The Navajo Nation Council is required to communicate with the people for guidance," the suit states. "(Delegates) are required to use their experience and wisdom to always act in the best interests of the people."

The suit also challenges the council's secrecy in spending discretionary monies. Both the legislative and executive branch leaders are notoriously tightlipped about how discretionary funds are spent, although millions of dollars are involved each year.

"There are no ascertainable standards for distributions of such monies," the suit states, "no controls to prevent favoritism or inappropriate inducement (including bribery), and no accounting standards to protect the public purse."

In addition, the council violated spending laws because it impeded on responsibilities of established tribal programs, according to the suit.

"Neither the Speaker nor the Office of Legislative Services have the authority to expend or administer funds for social welfare services," the suit states. Without such guidelines, the assignment of money to the speaker and the president violates spending laws, the plaintiffs contend.

The suit also challenges the "emergency" designation on the legislation, which delegates use to speed funding bills through with little debate. The April bill did not include a description justifying the emergency label. It was not properly vetted and should not have been considered by the council in the first place, the suit states.

The suit was filed in Window Rock District Court. No hearing date had been set as of press time Wednesday.

Hada'a sidi is asking the court to declare the April legislation illegal. The suit also seeks a ruling that would keep the council from future similar expenditures.

This would include a court order for an independent audit and accounting of expenditures made under the bill's resolution - the discretionary funds. Such a report should include naming the objects and recipients of the money by name and amount, the suit said.

Those individuals would then enter into a plan to repay the funds, the suit states.

"As a Navajo voter, I would like to see our government go back to the ways of good government as was envisioned by the teachings of our elders and the fundamental laws," Bluehouse said. "Now, we hear about budget shortfalls and layoffs. This runaway spending by the council puts our Navajo government in peril."

Keeswood said at the time, "What is required is that any internal control deficiencies be addressed immediately, in order to ensure that Navajo Nation funds are used legally and appropriately, and that persons who have abused the trust placed in them as Navajo Nation employees and officials be held accountable for their actions."

The largest single recipient of aid is Amanda Teller, stepdaughter of the legislative branch's top financial watchdog, senior financial adviser Laura Calvin.

"Navajo Nation Council delegates and the speaker of Navajo Nation Council, as well as the president of the Navajo Nation, have been appropriated discretionary funds in order to allow them to provide financial assistance to members of the Navajo Nation public in their time of dire need," Keeswood stated.

On Sept. 4, Keeswood was reminded about his 2007 statement and then asked why he gave Amanda Teller four checks totaling $2,600 in 2008, in apparent violation of the rule limiting tribal members to one grant of aid from council discretionary funds per year.

Amanda Teller is the daughter of Leonard Teller (Lukachukai/Tsaile/Wheatfields), who serves as vice chair of the Government Services Committee. Keeswood is its chairman.

"As far as my assisting her - pretty much in general when we assist people, they come in, we assume they're all legitimate," Keeswood said. "When we're requested, we do what we can. And I've never gone and asked anyone whether or not this person has received any money from anyone (else)."

Keeswood added that his assistance to Teller's daughter was emergency related but he couldn't recall exactly what the emergencies were.

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