Siletz news /, August 01, 2000, Page 3, Image 3

CHAIRMAN’S REPORT
Chairman Delores Pigsley
group that the meeting had to be postponed
because of a Senate procedural problem
and that we would be invited back when the
meeting is rescheduled.
I did, however, submit advance copies
of my written testimony to the Senate
consultation with tribes on a government-
to-government basis.
As I was attending the HHS sessions,
Bonnie Petersen was involved with meetings
of the NCAI/BIA Needs Assessment and
Auditing Workgroup, on which she serves
committee, in which I strongly protested the
Notice of Violation.
In addition to objecting to exceeding its
authority, I pointed out that NIGC prejudged
the data on which it made its allegations. I
as a fnember. Bonnie will report directly to
the Tribal Council and to appropriate tribal
committees on the issues and activities with
which this particular NCAI committee is
currently involved.
strongly protested the posting of the NOV
on the Internet even before the tribe
received the notice and had an opportunity
to respond.
As I said in my statement, this was a
blatant “violation of basic fairness and
procedural due process.”
As announced in our press release on
July 14, any interested person can find the
text of the tribe’s response to NIGC on both
web sites of the Siletz Tribe -
http://www.ctsi.nsn.us and Chinook Winds
For those of you who have not yet
heard, the National Indian Gaming
Commission (NIGC) issued to the Siletz
Tribe a Notice of Violation (NOV) dated June
- www.chinookwindscasino.com.
14,2000, accusing the Siletz Tribal Council
We will see to it that the NIGC’s
and individual Council members of violating
decision on our appeal as well as any follow­
the Indian Gaming Regulatory Act (IGRA),
up comments by the tribe will be
the tribal-state gaming compact, and
made public.
NIGC regulations.
While in Washington, D.C., Bonnie
Specifically, the charges related to our
Petersen and I, accompanied by
use of
comps,” the normal business
consultants Franklin Ducheneaux and Zak
practice in the gaming industry of providing
Zakoji, conferred with the staffs of Sens.
complimentary benefits for marketing,
Ron Wyden and Gordon Smith and Reps.
advertising, and public relations purposes.
Darlene Hooley, David Wu, and Peter
The Siletz Tribe has used comps for
DeFazio on a number of critical issues
meals and entertainment at Chinook Winds
currently facing the tribe.
ever since the casino and convention center
While in Washington, D.C., I also had
was established four years ago. We are no
the opportunity to participate, at least part
different from other tribes- that operate
of the time, in the National Tribal Consultation
gaming enterprises.
Forum sponsored by the Department of
In a 17-page letter dated July 14, which
Health and Human Services (HHS). This
we sent to NIGC with supportive
was a follow-up to the Listening Council held
documentation, we challenged NIGC’s
by HHS during the past year. In sponsoring
unsubstantiated allegations. The tribe’s
these councils, the department is guided by
comp expenditures, we said, were not only
certain principles, including the need to
“justified and valid,” but NIGC exceeded its
operate on a government-to-government
authority by “intruding into the internal
basis with tribes, to consult to the greatest
business decision of the Siletz Tribe’s
extent possible with tribes, to assess the
gaming operations.” Our letter further stated
impact of the agency on tribal trust
that “NIGC did not conduct a proper
rescurces, and to remove procedural
investigation of the data provided to it and
impediments.
reached erroneous conclusions."
In that context, the various HHS
It was timely that the Senate committee
department heads made presentations,
that oversees NIGC’s operations had
each followed by a period of dialogue on
scheduled hearings for July 19, 2000. As
critical issues by HHS officials and tribal
one of those on the hearing list, I was in
representatives.
Washington, D.C., prepared to testify. At the
I believe it is commendable that HHS
last minute, a member of the Senate
is at least making a determined effort to
committee announced to our assembled
implement a process of meaningful
Siletz, con’t from page 1
of NIGC to investigate and review the
information provided to it, many of the entries
noted in the NOV are incorrect, incomplete
or inaccurate.”
In
fact,
such complimentary
admissions, called comps, are part of
Chinook Winds’ operating expenses,
budgeted for marketing and public relations
purposes. They are not, as NIGC alleges,
taken from net revenues, but are part of the
gaming enterprise’s operating expenses.
Tribal Council members also serve as
directors of the Chinook Winds board. As
board members, they are expected to
actively market the casino and provide a
clear linkage between Chinook Winds and
the Siletz Tribe by their presence.
“Comps are common practice in
gaming and throughout the entertainment
industry,” said Chinook Winds Acting
General Manager Chris Steinbach. “A
closer look would have made clear that
comps are provided to our board members
for legitimate marketing purposes consistent
with our marketing plan.”
The tribe’s response letter detailed the
purposes for all the comps NIGC alleged
were used personally by Tribal Council
members and the tribe. Dorsay noted that
even a cursory investigation would have
shown all the expenses were justified.
In his letter, Dorsay concluded: “NIGC
has overstepped its authority and interfered
with the internal business decisions of the
Siletz Tribe and its gaming operation, by
classifying expenses as improper and
imposing its own business judgment on the
tribe’s gaming operation .... No violation of
IGRA or of the use of net gaming revenues
occurred at Chinook Winds or by the Siletz
Tribe in 1999. NIGC did not conduct a proper
investigation of the data provided to it and
reached erroneous conclusions about comp
(
charges incurred and authorized in 1999 at
the casino.”
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