Copyright © 1998 NLThomas
All Rights Reserved

Cherokee Press Association
Copyright © 1998 CPA
All Rights Reserved

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Chief Byrd Announces
Hiring, Spending Freeze

By Donna Hales
Phoenix Staff Writer

Copyright © 1998 Muskogee Phoenix
All Rights Reserved

Published in the Muskogee Daily
Phoenix, February 10, 1998

TAHLEQUAH -- Chief Joe Byrd announced a two-week hiring and indirect spending freeze Monday and said he had a group working on the Cherokee Nation's cash flow problems.

Byrd also defended his signing a transfer of $2.4 million from Indian Health Service funds to the tribe's operational account in October by saying it never went through. Byrd said motor fuels tax money was used instead.

But his explanation didn't sit well with a lot of Cherokees attending the monthly meeting of the Cherokee Nation Tribal Council.

"Mr. Byrd's signature on an illegal transfer of federal funds is a sad state of affairs -- even if the transfer was not made," said Jess Byrant, former chairman of the Cherokee Nation Enterprises board.

"It's really a sorry example to set for our children that an illegal act is even an option. It should be unconscionable anything illegal even be considered by anyone at the Cherokee Nation."

Councilor Barbara Starr Scott said it is illegal to use health funds for any purpose other than health without council approval. And the administration knew the council has never approved such funds be used for anything but health, she added.

"I would say when we have people dying of cancer and we can't even get them pain medication that we wouldn't authorize health funds for anything but health," Scott said.

When Councilor Paula Holder asked Byrd about the $733,000 in health funds that did get transferred into the tribe's operating account, Byrd first said the matter was involved in a lawsuit and he couldn't discuss it. Holder challenged that the suit Byrd referred to was filed by here and that the transfer wasn't involved in the suit.

Byrd then referred Holder's questions to tribal accounting employee Don Vaughn, who said the tribe's analysis of the transfer was not complete. He said an analysis is not complete, but the preliminary analysis "is that one piece of the money was owed by the IHS programs."

Holder reminded Vaughn that Friday, he told her health services did not owe the money; "It wasn't owed -- it was just pulled out and used. Days later you thought it was OK to use $733,000 out of IS."

Byrd didn't take further questions and left the meeting. Deputy Chief Garland Eagle said Byrd had been ill.

Holder asked tribal Secretary-Treasurer Jennie Battles about the accuracy of a document that Battles and Vaughn had recommended be destroyed on Jan. 29. It shows the tribe's expenses and encumbrances total $6.4 million than its revenues.

Battles said she doesn't believe the document reflects accurate revenues. "I don't know on expenditures," she said.

Battles said bank statements and books haven't been reconciled for " a number of months." She said the tribe's computer software problems prevent the true financial condition of the tribe from being known.

When Holder questioned Battles about Battles' contract with the tribe, Eagle cut off the discussion, saying Holder had used up her allotted time to question Battles.

"We have tribal business to do," Eagle, president of the council stated.

Councilor Troy Poteete countered the council is denied information and has to use the council meeting to try to get information from the administration.

Poteete asked Battles about contracts Byrd had signed in relation to the budge. He told Battles the council "can't find out not only what the money is going for -- but do we have the money to pay for it."

He cited the administration's continual use of the fuel tax money for the operating fund, saying, "We've got to get a grip sometime."

Battles said there is no accounting code for contracts. She said the issue would be addressed in a Wednesday night council committee meeting.

"It just concerns me we keep spending money we don't have," Poteete told Battles.

Battles said she would discuss the tribe's cash flow problems in a Feb 19th meeting of the executive and finance committee.

Scott asked what Battles had in mind to control attorney fees, adding that "somebody has to control them."

When Scott asked if Battles was sitting on $400,000 in attorney bills that hadn't been paid, Battles said she didn't know the amount.