Thank You For Smoking, Part Tali: Follow the Money

We got some feedback about our blog regarding the mysterious smoke shop subsidy, which puts money in the pockets of people who sell cancer sticks in our communities.  Seems pretty stupid, but it passed the Tribal Council unanimously, and Baker’s treasurer was there to support it.  So someone said we should follow the money.  As in, whose pockets does that $725,000 land in?  And lo and behold, the mystery became much clearer.

First, remember that the money helps two classes of people:  1) the people who lease their land to smoke shop owners, who now have most of their rent guaranteed, and 2) the smoke shop owners themselves, who now don’t actually have to pay their own rent. 

So a closer look shows that one of the proponents of giving Cherokee money to cancer peddlers instead of senior citizens was Chuck Hoskin, Jr.  And it turns out that his dad, Chuck Hoskin, Sr. owns land that is leased to a smoke shop.  Cha-ching!  What a great deal!  Chuck Jr. didn’t even recuse himself, he just voted to have the Cherokee Nation send money to his dad.  Pretty sweet.  It must be tough for Chuck Sr., making ends meet.  He’s already having to work two full-time jobs (State Rep and Chief of Staff).  The Nation was only paying Chuck Senior $130,000 this year, and the State of Oklahoma was chipping in a mere $38,400. 

While that’s not bad for a guy who lives in Vinita but whose offices at both of these “full-time” jobs are in Tahlequah and OKC, he did manage to find a way to squeeze another few extra bucks out of the Nation.  Well played.

Who else?  Well, who else is close to Baker?  No one is closer, literally, to Baker than the guy whose job is to drive him around.  Billy Bob Dougherty was a campaign donor Baker hired to be his driver/special projects guy.

But guess what?  Dougherty also owns a smoke shop and apparently needs a second check from the Cherokee Nation. Thanks to his boss/co-pilot, he doesn’t have to pay rent at his store anymore, according to the Cherokee Phoenix. 

So, he can continue selling low-tax tobacco, because of course it is in the Nation’s best interest to do so.  And the idea of giving the Cherokee people’s money away to people who sell tobacco, instead of say, that elder stipend we’ve be waiting by the mailbox for, is not just a stupid idea.  It’s starting to look like a corrupt one.

CNB Head Gets the Scythe

The Tulsa World is reporting that Baker’s new CNB board chairman/mortician is already taking on grim reaper status: Sam Hart announced today, a mere seven days after being named Chairman, that he and the rest of the board told David Stewart, who runs all of Cherokee Nation’s business operations, to leave his office on Wednesday and turned the keys over to Shawn Slaton, who has been with CNB for “more than a decade.”

The World quotes Hart as saying:  “CNB has established the Cherokee Nation as a strong economic engine in the region, and we look forward to continuing that legacy.”

They also point out that CNB made “record profits -- $87.54 million with nearly $600 million in operating revenues…” in 2010.

So if Stewart was in charge of establishing “the Cherokee Nation as a strong economic engine…” and is making “record profits,” why is he gone, exactly?

We've talked about Baker’s habit of replacing Cherokee citizens with a track record of success with his own folks, because, well, they are his own folks.  Among the highlights: having Hart step away from the embalming table to run all of Cherokee Nation’s businesses because he didn’t want the Cherokee who runs a $5 billion bank giving his advice, and replacing the treasurer of the Nation who won awards for excellence with someone who MIGHT be the best CPA in Vian.

It will be interesting to see where he pulls Stewart’s replacement from.

Accountability Watch, Part 2: When in Rome Edition

Thanks to the fine folks at the Native American Times, we can all read the text of Bill John Baker’s inauguration speech.  From reading it, we can see why some of the folks that went spoke highly of the event.  The speech was well written.  We’re sorry he didn’t take the opportunity to tell us what policy he was referring to that kept employees from talking to their council members, but instead told us that it existed and we should believe him.

He said he made five promises during the campaign that he planned on keeping, so we’ll take this as a challenge for all of us to keep him accountable.

#1: He’s selling Cherforce One and is currently taking bids.

#2: He’s going to have Cherokees build houses for other Cherokees by reactivating the Housing Authority to build hundreds of homes.

#3: He will ‘more fully audit the nation’s books to find more money to help our people,’ having Lacey Horn replace Callie Catcher.

#4: More money for contract health

#5:  A $200 elder stipend every six months for Cherokees ‘in need.’

We’re glad Baker is willing to be held accountable to these, and possibly other promises.  He, of course,  has to find money to pay for these new projects, and if Lacey Horn finds it all in her audits, she will definitely be earning her keep.

From Good to Great?

Baker has nominated a new treasurer.   In an all-employee email, since forwarded to Cherokee Truth, Baker said he wants Lacey Horn to replace Callie Catcher.  In the email, Baker tells us that she has a bachelors and masters degree from SMU and her previous experience includes a four-year stint as senior auditor with Chicago’s KPMG.  She is currently a CPA in Vian, her hometown. She graduated from Vian High School in 2000.  According to an online directory of businesses,

“Lacey A Horn Cpa, Pllc in Vian, OK is a private company categorized under Accounting and Bookkeeping Services. Our records show it was established in and incorporated in Oklahoma. Current estimates show this company has an annual revenue of $35,000 and employs a staff of approximately 1.”

Callie Catcher has been the treasurer of the Cherokee Nation since 2004.  Prior to that, she was controller of Dover Resources, where she was responsible for all financial functions for the international manufacturing group.  Dover’s revenues last quarter were $2.2 billion dollars.  That’s just in one quarter.  That works out to almost $9 billion in revenue per year.  That’s basically NINE times bigger than the Cherokee Nation.

When Catcher was confirmed, Baker voted for her to become Treasurer.  Joe Crittenden said “I have every confidence in her as a professional.”  Crittenden’s Adair County council cohort Jackie Bob Martin said, “We’ve best Secretary/Treasurer of any Indian tribe.”

So how has she done since then?  Well, the Cherokee Nation has won 10 straight awards for excellence in financial reporting from the Government Finance Officers Association for the Cherokee Nation’s “financial transparency and full accountability by exceeding the minimum requirements of generally accepted accounting principles demonstrated through comprehensive annual reports.”

That means the Cherokee Nation has done really well since Catcher became Treasurer.

Baker says one of his first orders of business is to have Horn audit Catcher’s work. 

So to sum up, Baker wants to replace a Cherokee who wins awards for financial excellence and has overseen finances for a multi-billion dollar company... with quite possibly the best CPA in Vian.