Funds frozen
Discretionary account being abused, tribal officials say

By Natasha Kaye Johnson
Diné Bureau

WINDOW ROCK — Discretionary funds within the Speaker's Office have been temporarily frozen after red flags went up exposing inappropriate distribution of funds.

The freeze, officials stated, will allow time for an internal investigation of allegations of improprieties, as well as time to write policies that would put a stop to further abuse.

"Something appears astray; something appears fishy," said Raymond Etcitty, Chief Legislative Council.

While a release from Speaker Pro Tem Ervin M. Keeswood, Sr. stated that there are no funds missing in the legislative branch, it was noted that the "allegations include the improper receipt of discretionary payments by Navajo Nation employees."

Discretionary funds are appropriated to the Council, Speaker's Office, and President's Office each year to help Navajo families facing crisis or emergencies, including burial expenses, emergency medical bills, rental and utility costs, and emergency auto repairs.

And while there are policies and procedures that define what constitutes an emergency, and what documents are needed to prove an emergency, Etcitty said it "may appear that some people may have fraudulently been issuing funds."

"Evidently, those protocols have been bypassed, and we have to examine further as to what's happening," said Etcitty.

The release states that some employees were fired after admitting to involvement to inappropriate use and receipt of funds, but it is alleged that current employees and officials have undertaken similar improper activities.

Officials could not release the potential number of individuals who allegedly abused funds, but Etcitty said the information was provided to both the White Collar Crime Unit, the Chief Prosecutors Office, and the Ethics and Rules Committee.

"We cannot talk about that until there is further investigation," said Etcitty. "We don't know of any details as of yet."

Frank Brown, investigator with the White Collar Crime Unit, confirmed Thursday that former employee Anthnette "Fern" Spencer, 23, was linked to red flags exposing misuse of funds.

Brown could not release an estimated amount that was allegedly taken or misappropriated by Spencer, and could not release names of other individuals who are also being investigated. Spencer, a former Miss Eastern Navajo Agency, Miss Indian New Mexico, and recent Miss Navajo Nation runner-up contestant, was released from her position as an office assistant at the Speaker's Office on Jan. 8.

In light of the recent allegations, Keeswood directed legislative branch staff to collect documents that contain questionable transactions so that they may be analyzed by law enforcement authorities, and to develop new forms for request and approval of discretionary fund payments for the Speaker's Office and Council delegates.

There will also be an analysis of the current polices and procedures to receive financial assistance, and the office will also be developing legislation for the Intergovernmental Relations Committee to possibly amend or extend the current policies and procedures for discretionary payments.

"What is required is that any internal control deficiencies be addressed immediately ... and that persons who have abused the trust placed in them as Navajo Nation employees and officials be held accountable for their actions," Keeswood stated in the release.

Etcitty said the branch will be working with the council and the Office of the Controller to put in better controls on how the system operates.

"While I regret the hardships which will be caused by this interruption ... it is necessary in order to allow the Legislative Branch to take firm and decisive action to address past abuses and prevent their recurrence in the future," said Keeswood.

The issue of adopting new policies and procedures will be on the agenda for the incoming speaker to address on Monday.