Severed CNB Head Speaks

David Stewart (Photo Courtesy KOTV)

When last we talked, on Friday, CNB’s board was in the process of putting their CEO on leave.  Turns out, this is a very busy board, because they had another meeting today and KOTV Channel 6 was there.

They got a confession from board chairman/funeral service guy Sam Hart saying that CNB “is in great shape, we’re making great strides, we’re in great shape.”

So if we’re in great shape, then why is the CEO taking a leave of absence?   Well, according to Channel 6, the CEO, David Stewart, says he was “placed on a 30 day leave of absence last Friday. He says he hasn't turned in his resignation, doesn't plan too, and he hasn't been asked to resign.”

So if he’s doing a good job and doesn’t want to go, and his boss, the chairman of the board says he’s doing a good job, what gives?

Channel 6 also says “In 2002, Cherokee Nation Businesses had around a thousand employees, this year it has more than 4,500."

"In 2002, CNB's revenue was close to $25-million, in 2012, it's more than $600-million. Stewart says if this is indeed the end of his time with Cherokee Nation Businesses that he's proud of how the company has grown.”

One person who can shed light on this personnel issue, and has, is the speaker of the council, Tina Glory-Jordan, who shared details of the agreement with the media.  She says that Stewart's situation is neither a “termination or resignation but is a ‘standstill agreement between mutual, voluntary partners…”

He Means Business!

Bill John Baker means business.  He told us so, and one of his first orders of business looks to be replacing the Cherokees who run our businesses.   

According to the Cherokee Phoenix, Baker is appointing five new board members, and giving the boot to four folks who are on the board of directors.

The people who Baker does NOT want to run our businesses are:  the former CEO of CITGO, the third largest independent oil refiner in America (David Tippeconic), the executive vice president for financial services for Bancfirst, a bank with $5 billion in assets (Jay Hannah), the top guy at one of the biggest, if not the biggest, commercial real estate company in Tulsa (Mitch Adwon of Adwon Properties) and a financial executive at one of Oklahoma’s only Fortune 500 companies, ONEOK (David Ballew).  All are Cherokee.  All have helped, in some degree, build businesses that now make $90 million a year.

The people Baker wants to replace them are: Tommye Sue Wright, Bob Berry and Michael Watkins, of Tahlequah, as well as Stilwell’s Rex Earl Starr and Brent Taylor from Pryor.  The Cherokee Phoenix sums up their experience:

“A real estate agent with Century 21, Wright manages more than 50 sales agents and support staffers and is responsible for more than $60 million in real estate sales annually...

A graduate of Harvard Business School, Berry is the founder of American Nursery Products and Tri-B Nurseries. His family owns two nurseries and Tahlequah’s Cherry Springs Golf Course... 

Starr is a private practice attorney whose clients include five school districts in Adair and Sequoyah counties...

A graduate of Northeastern State University, Taylor is an entrepreneur who has brokered lease agreements with Jackson Hewitt, Pizza Hut, Covington Finance and Pryor Creek Music Festivals...

Watkins retired earlier this year after eight years as chief financial officer and controller of Park Hill Plants. He is a former vice president of Cherokee Nation Enterprises, now Cherokee Nation Entertainment.”  

All of these people have had good careers.  The Phoenix doesn’t mention it, but we’ll give Baker the benefit of the doubt that they are all Cherokee until we're told otherwise.  And maybe it’s just us, but when you are replacing a guy who has run one of the biggest companies in the world with a guy who’s resume includes lines like ‘brokered lease agreements with Pryor Creek Music Fesitivals,’ or one of the top guys at a $5 billion bank with a guy who does a little legal work for “five schools in Adair and Sequoyah counties” that seems like a downgrade. 

22 Days Until the New Election: Pants on Fire!

Our evening did not go according to plan.  We had a blog ready to go, until we got a phone call and had to write a new blog.  Because if there is one thing you can’t do to us here at Cherokee Truth, its call us up on the phone, act surly, and lie to us.  And that’s what happened tonight.

We got phone call(s) that said, to the best of our note taking ability: “For 12 years Chad Smith has refused to audit the casino’s finances but Bill John Baker will order an independent audit to make sure that casino money goes for services to the Cherokee people and not to line the pockets of campaign contributors and vendors.  I hope that Bill John can earn your vote in the upcoming election.”

As readers of the Cherokee Truth know, this is a lie and worse-- Baker knows it is a lie!  As we showed everyone in May, 53 Days before the June election, the Cherokee Nation and its businesses are audited every year and win awards.  Mr. Baker knows this, because the audit is not only presented to the CNB Board (of which he is an advisory member,Resolution R-52-10) but also the council’s executive and finance committee just a few months ago.

Not only are the audits for the past 10 years available online, but video footage of Baker sitting and listening to the audit being presented is also available online!

The auditor even talks about the special audit of JUST THE CASINOS, which is sent to the feds every year for compliance purposes.

There’s also the Tulsa World story that cites a national rating company for praising Cherokee Nation for its "careful and conservative governmental financial management" and for its "ability to manage cash flow issues." It goes on to tout Cherokee Nation's creation and expansion of non-gaming businesses like health care and information technology. 

To sum up:  The casinos are audited every year.  They win awards for their clean audits.  Baker knows this and lies about it anyway.  Apparently he thinks no one will notice that he’s not telling the TRUTH. He must think we’re all stupid and can’t look up readily accessible public information that shows he’s lying.

We’re sure the Cherokee Nation isn’t perfect, and Baker can certainly point out all the flaws he wants, but if he has to lie to people to create problems with the Cherokee Nation, that says more about him than it does anyone else.

12 Days Until the Election- Guest Blog featuring Chief Chad Smith

Two weeks ago, we asked Baker and Smith to submit a blog, 700 words or less, for our audience. We asked that the blogs be positive and about their candidacy, and pointed out that it would be a way to reach a few hundred Cherokees without having to kill and fry a single hog. Both candidates responded to our email, but only one actually submitted a blog, and his blog will run today.

Those of you who support Baker, we apologize that his campaign chose not to respond, but as we pointed out, no hard feelings.  That being said, here is Smith’s guest blog:

____________________________

I want to begin by saying Wado to Cherokee Truth for allowing me to post a blog on this page and I commend the site for its dedication to providing accurate information to Cherokee voters.

I’m proud to be principal chief of the great Cherokee Nation, because I love the work of building our Nation. I never underestimate our people, our employees or our future because I believe as Redbird Smith said, “We are intelligent, industrious; we are loyal and we are spiritual.” These are important traits to consider when we are on the verge of selecting leadership.

By just about every measure, the Cherokee Nation is better off today than it was 12 years ago.  I will always believe that the very best service we can provide for our people is a job.  We’ve created 5,000 jobs with great benefits that enable our people to take care of their families and contribute to their communities. And Cherokee Nation hiring policy requires that Cherokees be considered first for all jobs.  Look around and ask yourself if more of your friends and family work for the Cherokee Nation and our businesses today than 12 years ago.

While we are proud of our successes in gaming, we know that to provide a secure future for generations of Cherokees, we must work to create a strong and diverse tribal economy.  By operating on a sound fiscal policy that reinvests our gaming profits, we own businesses that provide environmental services, home health care, IT and hospitality services.  Our strong credit rating enables us to receive capital improvement loans at interest rates that save our Nation thousands of dollars.

Our health care system’s budget in 1999 was just $18 million. Now, it’s more than $300 million. When some folks were doubtful about Cherokee Nation assuming operations of W.W. Hastings Hospital, I had faith that our employees could do a great job, and we’ve increased services and put $9 million into additional facilities there.

Our housing program went from putting 23 families in houses each year to putting more than 200 families in houses each year. I believe our housing employees do an amazing job and we receive thank you notes and compliments on their work daily.  

Under my leadership and thanks to our staff, the CN has received national awards nine years in a row for its finance system and audits. I proposed the Nation’s first Freedom of Information Act, Open Records Act and Free Press Act.  I strongly believe in the need for our government to be both transparent and accountable which is why our budget is posted online and Annual Reports are delivered each year to Cherokee citizens, both on our government budget and on the division of casino profits.

I’ve disagreed with our highest court, but always respected their decisions and their position as a third and equal branch of government.   It is my sworn obligation and my constitutional duty to both follow the law and to defend adamantly the Cherokee people’s right to their own constitutional process.

I have increased our overall budget for services from less than $150 million to $600 million, in part because of our efforts in Washington, D.C.  Education will continue to be one of my highest priorities.  During the past ten years, the Nation has provided more than 23,000 students scholarships for higher education and assisted thousands more through vocational training grants.

I could go on talking about the great things our employees have done and how far we’ve come, but if you’ve been around here, you see it. Still, I know there is a much more we can accomplish and I am running for re-election to continue building and improving the Cherokee Nation.  Recently, President Obama said, “We should live up to the expectations of our children.”  As Cherokees, I believe we must look to the future in even broader terms.  Our children and theirs and theirs.  Your response to this call will ensure that the Cherokee Nation will continue to be stronger than ever, passing on our great legacy to those who come after.

Wado,

Chief Chad Smith

34 Days Until the Election- Show Me the Money

The latest from the Baker campaign is the recycling of an argument from 2007 that didn’t really work out so well for Stacy Leeds, but he’s giving it a shot.

He says, "Four years ago only a dime of every dollar that CNE made was going into services for the Cherokee people. Now, it’s only a nickel.”  

So let’s check out the Truth here…  First, was Leeds right in 2007?  According to the Tulsa World, no, not even if you do the math weird.

According to the World, the casino’s total gross earning were “$418.6 million in the fiscal year that ended Sept. 30, 2007. Of that revenue, $20.4 million went toward gaming compact fees, $119.4 million went toward payroll, and $167.2 million went toward operating expenses…”

That left a profit of $111.6 million, which means more than a quarter of the gross profit was net profit-- and that's pretty good.

Depending on if you count payroll (the majority of which goes to Cherokees, see truth report here), and services and reinvestment, way more than 10% goes to Cherokee people.

So if Stacy Leeds' claims were not true 4 years ago, are Bill John Baker's claims true today?

Let's run the numbers. 

In 2010, the last time fiscal year numbers were published, the totals were $137.2 for payroll, $26.1 for compact fees, $204.1 million in operating expenses and $88.1 million in profits, for a grand total of $455.6 million.

So, the net profit was down, but hey-- the economy sucks for everybody. Still, no matter how you figure it, Cherokees are getting way more than 5% of the money. 

The Cherokee Truth:  Even if you count every dollar the casino makes before you pay the light bill or everyone's paycheck (we're talking total gross revenue), Cherokees still see 15-25% of every dollar that’s put into one of those slot machines. 

So, it looks like the Cherokee people are getting a lot better return than the shareholders of Baker Furniture, who lost $57,000 last year. And the year before that.