Fight looms over Navajo casino gaming

By Kathy Helms
Diné Bureau

WINDOW ROCK — A group of former Navajo Nation leaders and grassroots members are moving forward with litigation to prevent the Nation from concluding a $100 million loan agreement with JP Morgan Chase to finance gaming.

Jim Zion of Albuquerque, attorney for Ha’a’da’a Sidi, has been authorized to file suit in Window Rock District Court on behalf of the group, which had planned a news conference Monday morning in Chinle but later canceled the event after a major winter snowstorm blanketed the region.

Zion is expected to file the suit in an attempt to block Navajo Nation Controller Mark Grant from negotiating and concluding the agreement with JP Morgan.

Ivan Gamble, a member of Ha’a’da’a Sidi, The Vigilant Ones, said Monday that as required by the Sovereign Immunity Act, 30 days have expired since the group served notice Dec. 5 to Navajo Nation President Joe Shirley Jr., Attorney General Louis Denetsosie and Controller Grant of intent to file suit.

“The group met and by unanimous consent, Ha’a’da’a Sidi decided to move forward with the suit and is prepared to defend the Nation’s assets against the Shirley administration,” Gamble said. “I’m glad that we’re moving forward.

“I believe that what we’re doing is in the interest of the Nation and protecting the Nation’s assets. We’re being vigilant to the fact that one administration should not be able to leave the next administration with the check after they’ve left the table,” Gamble said.

In 1989, just before former Navajo Chairman Peter MacDonald was removed from office, there was similar legislation for a $100 million bond pending before Council, according to Gamble. “Only the assets of the royalties from the Kayenta Mine were used as pledges for the issue, and the bank was from Japan,” he said.

Legislation passed recently by Council to authorize the $100 million bond to finance gaming states that Navajo only looked at lenders in Indian Country, Gamble said.

“We’re limiting ourselves from the powerhouse brokerage firms in London and New York. We’re limiting ourselves from the Asian market. They found the most expedient person that was within arm’s reach that they went into business with,” he said.

One of the issues raised by Ha’a’da’a Sidi and others is that the Nation’s Permanent Trust Fund could be required as collateral on the loan.

Attorney Zion said that the breadth of the council resolution that authorizes the controller to negotiate and conclude the loan is such that the Permanent Trust Fund might be subject to pledge.

The controlling statute, 12 N.N.C. § 909 (2005), states, “In the event of an imminent default of any Navajo Nation bond obligation, the Navajo Nation Permanent Fund income and principal, in that order, may be used as a source of payment by two-thirds vote of the Navajo Nation Council.”

Zion said that while the statute requires a two-thirds vote to use the fund in case the Nation defaults, “it does not prohibit a pledge of the Permanent Fund to secure a loan.”

Budget and Finance Committee Chairman LoRenzo Bates stated recently that JP Morgan is asking the Nation for collateral for the loan above and beyond what is in the legislation approved by council. Bates has recommended the legislation be rescinded.

Ha’a’da’a Sidi hopes to establish in the suit that council violated several legal requirements when it approved the authorizing legislation, including violations of appropriations and bonding statutes; violations of Title 2 restrictions or requirements; violations of Navajo common law; and abuse of legislative procedure.