Suspended Navajo Leader Seeks to Regain Post, Triggers Tribal ‘State of Emergency’

WINDOW ROCK, Ariz. —  A power struggle virtually paralyzed the nation’s largest Indian tribe Friday as Navajo Chairman Peter MacDonald tried in vain to reclaim office just 16 hours after stepping aside to fight allegations of corruption and fraud.

The bizarre turn of events at one point left the 200,000-member tribe with three chairmen, two vice chairmen and an apparently hamstrung governing body.

“We are not a banana republic,” delegate Anderson Tully declared as the 88-member Tribal Council debated the confusing situation.

Retains Salary

Declaring tribal government in a “state of emergency,” the council announced that it had voted 49 to 14 with five abstentions late Friday to suspend MacDonald indefinitely while continuing to pay his $55,000 annual salary. The council did not account for the other 20 members.

The historic action came just hours after the 60-year-old leader attempted to rescind the voluntary paid leave he had taken the night before.

Spokesmen said MacDonald sought to return because the council had rebuffed his bid to name his own successor and have the tribe provide legal expenses, office space and a support staff while he tries to clear his name.

Operating in Limbo

The council operated in legal limbo Friday, with no definitive opinion on who exactly had the authority to run the tribe--MacDonald, his vice chairman, Johnny Thompson, or the chairman pro tempore named by the council, Marshall Plummer.

The council recessed until Tuesday without addressing the issue.

Before heading home to explain the perplexing situtation to their constituents this weekend, the council decided to appoint an independent prosecutor to look into the allegations against MacDonald.

Several councilmen described the move as an attempt to “clear the name of our chairman and the Navajo tribe.”

U.S. Senate hearings this month into allegations of fraud and mismanagement in Indian country produced damaging testimony against MacDonald--some of it by his own son.

MacDonald is accused of taking kickbacks and soliciting favors from contractors seeking to do business with the reservation. He also has been accused of profiting from a huge land sale to the tribe.

MacDonald has denied any wrongdoing, and no formal charges have been filed. A federal grand jury in Phoenix is looking into the case and has subpoenaed financial documents from the tribe.

Despite the council suspension, spokeswoman Tazbah McCullah said MacDonald still considers himself chairman.

Conflicting Opinions

She said the tribe’s Justice Department had conflicting opinions about the legality of the council maneuver.

MacDonald did not attend the session and issued no immediate statement.

“MacDonald is a very desperate man,” said Stan Milford, his former campaign manager. “He’s going to be indicted within a month. He’s stalling for time.

“He portrays himself to the public as a Geronimo,” Milford said. “We say Geronimo was an honorable man who did not steal from his people.

“We more or less place MacDonald with Noriega, Marcos, Kadafi and the shah.”

Meanwhile, the leader of a campaign to recall MacDonald filed a $2.4-million libel suit against MacDonald and key aides in connection with an anonymous smear sheet circulated here, the tribe’s capital.

Without offering substantiation or attribution, the crude leaflet accused several MacDonald foes of unsavory behavior. The libel suit was filed by recall leader John Chapela, an attorney.

McCullah denied allegations that the three-page smear sheet either originated from the chairman’s offices or was duplicated there. She said she had “no idea” where they came from.