Tribe secures $38M loan

By Jomay Steen, Journal Staff Writer | Friday, June 17, 2005

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PINE RIDGE -- For the people on Pine Ridge Indian Reservation, the Oglala Sioux Tribal Council has secured funding to continue operations and services of the tribe.

On Friday, the OST Council secured a $38 million loan with the Shakopee Mdewakanton Sioux Community of Prior Lake, Minn., in a special session in the tribe's council chambers.

Fourteen council members voted to approve and finalize negotiations between Pine Ridge and Minnesota tribal delegations on the 15-year, $38 million loan at 6.5 percent fixed interest.

It was not unanimous. Two council members, Valerie Janis of Oglala and Kathy Janis of Wounded Knee, rejected the loan plan.

Walt Big Crow, chairman of the OST Finance Committee and Wakpamni District representative, said he had been dreaming about the vote the previous night.

Although afraid of the repercussions if the loan hadn't been approved, Big Crow was confident about the vote.

"There has been a lot of dialog and a lot of information distributed about this," he said.

President Cecelia Fire Thunder agreed.

"There were a lot of questions that we answered, and there was a lot of education for the people so they could understand the enormity of the debt," Fire Thunder said.

Since entering office, the executive officers and council have been under tremendous pressure due to what Fire Thunder described as the tribe's "financial crisis."

"This loan is going to bring everything back on track," she said.

Garfield Steele, Wounded Knee District representative, said with 85 percent unemployment on the reservation, the $20 million casino improvement loan would open 100 to 125 new jobs on the reservation. The $18 million would keep nearly 800 tribal employees working.

"It secures the existing jobs that we already have, and we won't have to lay anyone off," he said.

Craig Dillon, Lacreek District representative, said the tribe has been stumbling along in a financial fog until this point.

A former tribal finance committee chairman, Dillon said that for years the tribe continually played catch up when paying the bills.

Dillon said that changed when Fire Thunder and Crystal Eagle Elk, newly-elected treasurer, came into office and realized the tribe's enormous debt.

"They used the word that no one in Indian Country likes to hear, and that is ‘no.'" Dillon said.

The Shakopee loan will reach the tribe's accounts June 29.

Austin Watkins Sr. wanted to make clear that the money has already been earmarked to pay bills and improve the tribe's casino.

"We're not spending it on anything else," he said.

Earlier in the meeting, Paul Little, Oglala District representative, had wanted Alex White Plume to oversee the meeting.

"We have some important cases to decide on today and I don't want people to come back to us and say the meeting was lead by a president who was suspended," Little said.

Little had disagreed with OST attorney Peter Capossela's findings that Fire Thunder and Eagle Elk should remain at their jobs until a tentatively scheduled June 29 hearing.

Capossela said he gave his best legal advice on all tribal procedures.

"I do stand by the advice I gave," he said.

Fire Thunder said she had not been served with a complaint in hand until June 10. As is law, Fire Thunder would have 20 days to prepare for a hearing. Under the law and advice of tribal attorneys, she and Eagle Elk will remain at their jobs.

Will Peters, Pine Ridge District representative, said Little's discussion only added to the confusion. The council had planned to vote on the loan, not deal with the suspension hearing of Fire Thunder and Eagle Elk.

"If you want to, do your politicking in the committees," Peters said.

Contact Jomay Steen at 394-8418 or jomay.steen@rapidcityjournal.com