Shiprock fair directors promise to report finances soon

More than four months have passed since the Northern Navajo Fair took place and fair board President Frank Yabenny this week addressed published reports that the fair board withheld financial documents and lacks legal status as a nonprofit corporation.

"It's wrong," he said.

Fair board Vice President Charley Joe agreed that incorrect information had been published, including claims that the annual Shiprock fair - the Navajo Nation's oldest - generates as much as $4 million.

"I think we need the media to straighten this all out," Joe said, adding that the fair plans to release financial data soon.

As for taking in $4 million, Joe laughed at the idea.

"We don't make that much," he said. "That's impossible with that short of time. I don't know where they get their figures."

Aside from continued uncertainty about the financial outcome of the fair, which was held in October, in December the chapter passed a resolution saying the board owes the chapter $32,000 in lease fees. The measure was sponsored by William Lee, chapter president.

Joe said the fair board plans to meet next week to finalize financial figures for the 2009 event, and that it would address any debts then. He said he didn't have financial reports on hand and didn't want to estimate numbers in light of next week's scheduled meeting.

Chapter Vice President Donald Benally said he'd like to see the money generated from the four-day fair put to good use.

"I'd like to see improvements (to the fairgrounds), but there are no improvements," he said.

Benally noted that the fairgrounds have not undergone any major improvements since the 1960s and still lack water and sewer lines. The electric lines are outdated, he said.

However, Joe said chapter officials stopped the board's plan to build new fairgrounds south of Shiprock near the junction of U.S. 491 and Navajo Route 36.

"I don't see why they're crying around about no improvement on the fairgrounds when it's them that stopped the process," he said.

He said the plans were nearing completion about two years ago when the local grazing board wrote a letter of objection to the tribe's land office, which stopped the project cold.

Another issue that has arisen is the status of the board as a nonprofit organization, which would shelter it from paying taxes on any profits from the fair.

Though the board doesn't make any claim to be nonprofit on its Web site, State Rep. Ray Begaye, D-Shiprock, checked with state tax authorities because many constituents believe it has nonprofit status. 

He said according to the New Mexico Department of Finance, Secretary of State's office, and the Public Regulatory Commission, the Shiprock fair is not incorporated as a nonprofit.

Joe dispute Begaye's claim, saying the fair board is a nonprofit entity and files annual papers with the state of New Mexico to maintain that status. However, Joe couldn't specify the exact name of the organization.

"I'm not opposing the operation, there just has to be some transparency so people would know that they're a good company and they're doing well," Begaye said.

Joe said he understands the people expect accountability from the fair board.

"You're in a crystal you know, so I got nothing to hide," he said.

Despite questions about the fair's financial standing, Ron Largo, investigator with the Ethics and Rules Office, said he wasn't aware of any formal complaint against the Northern Navajo Fair board or and its financial dealings.

He referred the question to Ethics Director Lawrence John, who could not be reached for comment by press time Wednesday.

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