THE NAVAJO COUNCIL IS DEBATING FORENSIC AUDIT OF NAVAJO OIL AND GAS COMPANY, A TRIBAL ENTERPRISE THAT HAS BEEN IN AN INTERNAL DISPUTE BETWEEN THE BOARD AND THE SHAREHOLDERS FOR SEVERAL MONTHS. THE FORENSIC AUDIT WAS SUPERVISED BY THE NOGC BOARD AND THERE WAS NO MENTION OF THE BOARD’S EXPENDITURES BEING AUDITED.
THE AUDIT WAS PRESENTED VERY QUICKLY AND I TRIED TO CATCH AS MUCH INFO AS POSSIBE. BUT I DID VIDEO TAPE WHICH I’LL DOWNLOAD AS SOON AS I CAN.

DELEGATE JONATHAN NEZ
I think that if Council accepts audit, then Council approving audit. Council needs to hear from other side.
we saw minutes of tent purchase and i saw legal purchase of tent. and so did these forensic auditors review minutes. so maybe we need to hear other side.

DELEGATE KATHERINE BENALLY
Boards use all of these controversaries and instabilities to their advantage. I make motion that Navajo Oil and Gas Board only meet pursuant to plan of operation. If once a month, then let it be so. Much of this can be handled by Chief Executive Officer. And this audit is a finding by Board that former Board also lined its pockets. but there is possibility that this board also lined its pockets.

SPEAKER BATES
holding Delegate Katherine Benally

NAVAJO OIL AND GAS AUDITOR
we are preparing written report for distribution by Dec. 4, 2014, to Council. I will let you know that there are financial statement audits and then there are forensic audits and forensic accounting audits and those go by certain procedures. i think many questions you raise will be answered in report. thank you for your discussion.

DELEGATE ALTON SHEPHERD
ask for support of upcoming Council legislation for appointment of Navajo Oil and Gas shareholders. and everyone on expired terms so council needs to address immediately. and i also ask Navajo Oil and Gas Board to understand that Council is not taking sides. Council is working on behalf of Navajo people.

DELEGATE LORENZO CURLEY
i’m also concerned about audit/report and i’m unwilling to accept as finding. it is our council practice for people to have say in findings.

SPEAKER PRO TEM LORENZO BATES
IF COUNCIL WANTS INDEPENDENT AUDIT, COULD IT BE DONE.
WRITTEN RESPONSE FROM PREVIOUS NAVAJO OIL & GAS ADMINISTRATION TO AUDIT
WRITTEN RESPONSE FROM FORMER NOG CEO ROBERT JOE TO AUDIT
DELEGATE KATHERINE BENALLY MOTION TO LIMIT BOARD MEETINGS BASED ON PLAN OF OPERATION

DELEGATE KATHERINE BENALLY
This audit report is based on just investigating shareholders and former board. if appoint new shareholders then they will be looking at questionable expenditures of board. it is evident that Board meet as much as they like, even every other day.

SPEAKER PRO TEM BATES
section 3.4: annual meetings of boards shall be immediate after shareholders. And since no shareholders then no board meetings. so if Delegate Witherspoon legislation passes then that can happen.
Regular meetings shall be once a quarter at place and time determined by Board.
Special meetings may be called by Board Chairperson or Vice Chairperson or three or more members.
There are no shareholders because there is no quorum of shareholders.

DELEGATE WALTER PHELPS
regarding Delegate Katherine Benally’s directive, when legislation for appointment of shareholders called for by Naabikiyati Committee, there also was call for forensic audit but this audit will not be finished until Dec. 4, 2014. so will there be need for special Board for audit and then for shareholdes to complete Naabi directive.

NAVAJO OIL AND GAS BOARD CHAIRPERSON LEONARD ELTSOSIE
a history of our request to present audit/report – we asked to be on Naabi agenda for Dec. 4, 2014, but then found out from newspaper that we were on Council agenda today. and yes, Navajo Oil and Gas Board will have special meeting to accept audit/report and then recommend to shareholders, which then goes to Resources & development Committee and possibly Naabi and finally to Council. And yes, we will abide by Delegate Katherine Benally’s directive.

DELEGATE WALTER PHELPS
has the board met for this quarter?

NOG BOARD CHAIRPERSON
Board has one quarterly board meeting when returned in June but never met for full year. but to accept audit report, we will have special meeting. once shareholders in place, board will schedule annual meeting.

DELEGATE EDMUND YAZZIE
could we have auditor general do audit on scope of work?

DELEGATE CHARLES DAMON
if directive approved then incentive then Board legal and I don’t believe that.

POINT OF ORDER – DELEGATE ALTON SHEPHERD
We need to vote on directives separately.

DELEGATE LEONARD TSOSIE
if this vote fails, so does directive and we are back at each other’s throats.

SPEAKER PRO TEM BATES
but other items presented by request move forward.

POINT OF ORDER – DELEGATE KATHERINE BENALLY
i have no problem with directive not passing. my point is made and it will remain.

VOTE OF COUNCIL ON ACCEPTING AUDIT REPORT
5 IN FAVOR, 11 OPPOSED

IT IS NOW 2:40 PM