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Forensic audit for Navajo Oil & Gas Company?
August 11, 2014 Professional Journal

(L-R) Navajo Nation Chief Legislative Counsel Levon Henry and Ethics and Rules Office Director Venon Roanhorse report to the Council on Navajo Oil & Gas Company in the Council chambers in Window Rock, Ariz., on Aug. 11, 2014. Photo by Marley Shebala. (Please provide proper photo credit when reusing photo.)

(L-R) Navajo Nation Chief Legislative Counsel Levon Henry and Ethics and Rules Office Director Venon Roanhorse report to the Council on Navajo Oil & Gas Company in the Council chambers in Window Rock, Ariz., on Aug. 11, 2014. Photo by Marley Shebala. (Please provide proper photo credit when reusing photo.)

HERE AT NAVAJO COUNCIL AT COUNCIL CHAMBERS IN WINDOW ROCK WHERE CHIEF LEGISLATIVE COUNSEL LEVON HENRY ASKED COUNSEL TO GO INTO EXECUTIVE SESSION

CHIEF LEGISLATIVE COUNSEL LEVON HENRY
Memo from my office, three exhibits – Navajo Natin Supreme Court decision “NOG v Robert Joe”, a letter from NOG Shareholders’ attorney, packet of information received from NOG regarding questions from Legislative Counsel.

Information from NOG is…

POINT OF ORDER – DELEGATE KATHERINE BENALLY
i need to know if ethics charges were made against the Shareholders before we move on.

ETHICS OFFICE DIRECTOR VERNON ROANHORSE
No.

CHIEF LEGISLATIVE COUNSEL LEVON HENRY
To preserve confidentiality, the ethics charges are not in packet.

Supreme Court ruled that the decision by the NOG Shareholders was invalid because there was no quorum of the shareholders. There were only five shareholders.

When NOG Charter came to Council, we looked to Title 2, which states that legislation subject to veto is for new laws and amended laws and since charter did not change law, it went directly to Secretary of the Interior.

Navajo Supreme Court didn’t overrule any Council decision, including Council’s appointment of new NOG Board members.

Question of conflict of interest by law firm – in this instance, there was insufficient information regarding Brian (sp) Law Firm.

One question looked at was pros and cons of continuing operation of NOG, and law says that NOG is wholly owned entity of Navajo Nation for the benefit of Navajo government and return all dividends/profits to Navajo Nation.

There were related questions from Naabik’iyati – why was lawsuit filed by NOG shareholders in Navajo Supreme Court and Shareholders’ attorney responded. Summary of letter – decision was made cuz shareholders didn’t have opportunity to respond in Navajo Nation case and to protect sovereignty of Navajo Nation. The letter also states other reasons for lawsuit.

Campaign Contributions – Info from NOG, board meeting held regarding payment to O’Henry Productions Inc. regarding sale of tent by particular individual. that was only info provided by NOG regarding violation of ethics laws.

legal advice to enterprises – letter from Paul Frye, part 5 of his letter, he says no information made.

how much board members paid in past few months – that info in binder and in letter from Paul Frye.

payment to law firms for legal action – Paul Frye letter summarizes. Frye is attorney for NOG.

payments made to persons to lobby on behalf of NOG – Frye answers in lette.

That is information we have gathered so far, along with ethics and rules charges.

DELEGATE RUSSELL BEGAYE
Payments to law firms, including Paul Frye and Brian Lewis, are not in packet.

CHIEF LEGISLATIVE COUNSEL
We didn’t get info on payments to Frye and Lewis. My understanding is I thot i copied letter from frye to Peterson Zah, in which Frye stated that since his involvement w NOG, he has not been paid.

POINT OF PRIVELEGE – DELEGATE LEONARD TSOSIE
Wat Ethic Director Roanhorse said troubles me that nothing filed when newspapers reporting that something filed. And if something filed, we need to hear it.

ETHICS DIRECTOR VERNON ROANHORSE
has ethics and rules charges been filed? No.

TSOSIE
has anything been filed with your office? don’t evade the question and Levon Henry is not your lawyer.

ROANHORSE
well, i answer this because of due process consideration. the people have right to process of law and i recognize that.

DELEGATE LEONARD TSOSIE CONTINUES TO PUSH ROANHORSE FOR ANSWER ON WHETHER “ANYTHING” FILED?

ETHICS DIRECTOR VERNON ROANHORSE
My answer is in the affirmative.

DELEGATE KATHERINE BENALLY
regarding confidential information, will that information be subject to legal issues and i have also asked for open discussion on this matter and that we all be in this chamber and resolve this matter. Are we in order if something filed? Wud be in order to allow someone to speak?

I believe we respect confidentiality, especially regarding removal of Speaker so we have to be cautions about this report.

SPEAKER PRO TEMP BATES
i wud ask you to respect Council floor rules for motion to accept report.

MOTIONING PARTIES ARE DELEGATES LOENZO CURLEY AND RUSSELL BEGAYE

DELEGATE LORENZO CURLEY
In looking at document, it appears partial to one group cuz i have concern about how NOG money used for private law firms. I don’t believe this is fault of one group. There was mismanagement.

anyone can file ethics complaint so what is so significant about it. one of constituents filed against me. so for those targeting certain individuals here on council floor then i’ll also bring in ethics director and ask if complaint filed. that is kind of show being point on. i don’t like it. we shud be showing solidarity. we have all kinds of problems, including Fort Wingate and Navajo Housing Authority.

DELEGATE LEONARD TSOSIE
Are we belittling Ethics and Rules Office? And i don’t believe just anyone can file an ethics complaint.

DELEGATE MEL BEGAY
I’m willing to step aside but that won’t change anything that I have seen that is wrong.
And we are telling Ethics Office to break the rule and tell everything.
I have to hide, I have nothing to fear.
What has been happening at NOG was not overnight. We cud open a hornet’s nest.

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