Federal Audit Questions $80 Million in Navajo Nation's Virus Relief Expenditures

Bitahnii Wilson, Dine', raised his own funds and distributed water and food as the coronavirus began to spread. Bitahnii  said, "Being and doing the Work for the Great Spirit is a physical prayer in action because we all have His-or Her Divine Presence within every individual and everyone we assist and help upon mother earth and under universal father sky, every day that we wake up we're given free will to do as we choose to spread the labor of love, and praise to the Great Spirit, Creator, Almighty, God. For me, this is the only way to live and be in Hozho!"

Federal Audit Questions $80 Million in Navajo Nation's Virus Relief Expenditures

By Brenda Norrell, Censored News, March 22, 2024

A federal audit review questions $80 million in expenditures of CARES Act Funds by the Navajo Nation government, according to a letter from the U.S. Inspector General in May. The audit review questions hardship claims, whether enterprises are separate from the tribe, monthly fuel charges, and the fraudulent cashing of duplicate checks.

An independent review for the U.S. Inspector General's Office states that documents are needed to verify whether tribal entities are separate legal and tax entities, and documentation is needed to show payroll, vendor receipts and hardship payments.

In August of 2020, as the coronavirus spread through the Navajo Nation, the Navajo government gave $24.6 million of its CARES Act funds to its casinos. During this time, Dine' elderly and disabled, and isolated families, were desperate for water and food, which resulted in a surge of volunteer efforts by Dine', who raised their own funds, and distributed water, food and supplies to sick and isolated Dine' for years.

Klee Benally co-founded the Indigenous Action Media Center and the Taala Hoghan Infoshop and worked hard to provide food, shelter and protective gear to indigenous in Flagstaff and regional Native communities. Klee passed to the Spirit World in December. Courtesy photo.

The desk review for the Inspector General said the tribe's risk of unallowable use of CARES Act funds is ranked as high. It was carried out for the federal government by the independent auditors Castro and Company. 

Censored News asked Navajo President Buu Nygren's Office for an update on the audit on Wednesday, March 20, 2024, but has not received a response. During the time covered by the audit review, the Navajo president was Jonathan Nez.

In addition to the CARES Act virus relief, the Navajo Nation received $2.1 billion from the American Rescue Plan Act.

The audit review of the Navajo Nation's CARES Act funds questions whether tribal entities receiving virus relief funds are separate components.

"Navajo Nation management did not provide Castro with the Employer Identification Numbers and articles of incorporation for the Navajo Nation and its legally separate component units. Without this information, we were not able to determine whether these sub-recipients were separate entities for legal and tax purposes."

The review also questions hardship claims and payroll expenditures.

"Castro recommends a specific focus on Navajo Nation’s non-payroll COVID-19 hardship claims, as well as payroll expenditures for employees substantially dedicated to COVID-19 recovery efforts."

Further, the Navajo Nation did not provide external vendor invoices to support the expenditures.

The audit review questions whether fuel costs were actually related to COVID, and describes the repair of a moldy wall in faculty housing, stating the leaking roof was a pre-existing condition.

"Specifically, Castro identified an invoice related to the repair of a damaged roof in a Faculty Housing Complex. Two tenants were forced to relocate due to major leaks and molding on the walls."

"Castro determined that mold and leaks were indicative of a pre-existing condition that would have pre-dated the COVID-19 pandemic; therefore, we were unable to verify that these expenditures were not accounted for in the budget most recently approved as of March 27, 2020."

Under the CARES Act, the Navajo Nation received $714,189,631.45.

Navajo Nation’s hardship applicants were required to attest to at least one out of nine eligible hardship statuses.

The review states that the Navajo Nation needs to provide a list of tribal members that attempted to execute schemes to receive fraudulent hardship payments, such as altering checks and attempting to cash counterfeit checks.

The CARES Act stipulates that a recipient may only use the funds to cover costs:

(1) are necessary expenditures incurred due to the public health emergency with respect to the coronavirus disease 2019 (COVID-19);

(2) were not accounted for in the budget most recently approved as of March 27, 2020; and

(3) were incurred between March 1, 2020 and December 31, 2022.

On Christmas in 2021, and during January, Dine' volunteer Mercury Bitsuie, Uncle Andy Dann, family and friends delivered food and water to fellow Dine'. Although the Navajo government received $2 billion in American Rescue Plan Act funds in May of 2021, the funds had not yet been distributed to Dine' in need. Photo courtesy Mercury Bitsuie