December 04, 2014
Thursday PM

I have always felt that culture is important to our identity; for decades I have been an advocate for culture, education, and employment of Alaska Native people. As a shareholder, I hoped that Sealaska Corporation would share my goals, as well as Sealaska Heritage Institute (SHI), the non-profit affiliate. Sealaska Corporation was founded as part of the Alaska Native Claims Settlement Act, and currently serves over 20,000 shareholders across the country. The Sealaska Heritage Institute has become the face of Tlingit, Haida and Tsimshian culture and hosts a biennial celebration in Juneau, Alaska, which is a source of great pride for the people. I have always worked for the betterment of our people through my involvement with Celebration as stage manager; an independent candidate for the Sealaska Board; and the originator of the Sealaska shareholders Facebook website, https://www.facebook.com/groups/SealaskaChange/.

I believe that Sealaska Corporation and Sealaska Heritage Institute (SHI) are legally fused as one entity. Sealaska needs to become the “silent partner” in SHI programs based on culture and education by allowing Sealaska Shareholders to run these programs.   Sealaska should not be involved in the management of programs for shareholders. The Sealaska Board and management are employees of the shareholders, their role is to ensure financial profits and protect fiduciary trust for shareholder assets, and nothing more. I see the only way to guarantee change is to defuse the power by involving new people. Many shareholders support the saying, “Sealaska Corporation - too much, for too few, for too long.”

I have requested financial records from SHI on 3 occasions, over a period of 4 months. This request was directed to the SHI President and the Chairman of the Sealaska Board, who is also a SHI Trustee, and all of my requests were denied. On July 30, 2014, the Chairman of the SHI board replied in writing, “No statutes or laws require the Sealaska Heritage Institute (SHI) …, to provide the specific information that you are requesting”. SHI receives grants and donations from Federal, City and Borough of Juneau, private donations, Sealaska Shareholder money, and the State of Alaska. SHI’s refusal to provide records, contradicts state law that states:

AS 10.20.131. Books and Records. (b) All books and records of a corporation may be inspected by any member, or an agent or attorney for the member, for any proper purpose at any reasonable time.

In my non-profit research, I have found that the Alaska State Dept. of Commerce, Community and Economic Developments (CED) failed to enforce accountability. There is no reason that we Tlingit, Haida and Tsimshian’s, should not hold SHI and Sealaska to a higher standard to conduct itself honorably. The Alaska State CED agreement grants legal status to the corporation in exchange for the corporate commitment to follow its rules.

In the past, the CED has already proven that they do not enforce oversight and accountability of SHI or Sealaska. Ideally, an oversight would require an independent audit that focuses on all travel; golden parachutes; retirement gifts; lavish dining; exorbitant spending; political contributions, and off-sight social events that involve the Sealaska 2014 Shareholder meeting; Alaska Federation of Natives; 2013 Thunderbird Potlatches; and Native American Indian Markets. An independent audit can only be successful with Congressional intervention and oversight.

Many do not know that the SHI’s Articles of Incorporation and Bylaws are based on the Sealaska Board Membership and there is legal fusion of the profit and non-profit entities. Since the 1980’s, Sealaska Board members have served as SHI board trustees, including the current Sealaska Chairman of the Board. From my perspective, this unity has fostered nepotism, to me, is a form of corruption. Nepotism is prevalent in the ranks of Sealaska Corporation and SHI. The 2005 Biennial Report (public records) will show that the SHI President’s relative were given preference, a relative was given two official titles—the Secretary, and the Vice President of SHI. The 2006 Alaska State Biennial records, proves that the same relative was appointed as the SHI Chief Operating Officer. There is special preference in hiring of the grandchild of the President, and a life-long friend of the SHI President, because they were hand-picked. At Sealaska, relatives of the Sealaska Board are employed as the Corporate Counsel, Corporate Secretary, the CEO, and as the Chief Investment Officer. There are many other examples that will show that nepotism is alive and well among Sealaska and SHI.

SHI’s refusal to release public records is a form of deception, and contradicts a recent August 2014 Alaska Supreme Court ruling: http://www.law360.com/articles/565720/alaska-high-court-says-shareholder-entitled-to-e-records 

Facts about SHI and Sealaska:

• In 2013, the business operations of Sealaska lost nearly $73 million
• In 2014, some expect that Sealaska will suffer another $25-30 million loss
• In 2001, Sealaska lost $146 million
• Sealaska has lost hundreds of millions every 10 years
• A public record, the 2012 IRS Form 990, shows that the SHI President earned a salary of $223,831 compared to similar of non-profit salary of $90,000
• The SHI President has held the position since 1996
• The SHI President also serves as a Sealaska Board Member since 1987
• The previous Sealaska CEO earned $398,000.00
• The smallest Sealaska dividend paid in 1985, was $96; the largest dividend in 1980 was $255; the average of all dividends, $502; the total dividends paid, $35,191 since 1979 is equivalent to earning $2.24 per day over 43 years

• SHI received millions of dollars in State of Alaska money and the City of Juneau
• An official CED complaint was filed with the State of Alaska on October 20, 2014 with claims that Sealaska failed to follow their own bylaws in the 2014 Board Election
• In 1992 state filed documents the SHI assets were $315,000, but, in 1994 their assets were listed as $14,000
• As a Sealaska Board Member, he/she earns $2000 per month, $750 per meeting day, $500 per teleconference, and $250 for an informal meeting
• Seven of Sealaska’s longest serving Board Member have a combined service of 150 years
• The longest serving Sealaska Board Member has served since 1976
• Sealaska Board members also serve as SHI Board of Trustees
  

Requested records:

• Documentation that the SHI trustees have approved the Treasurers’ report
• Documentation that trustees have approved the minutes of the all meetings
• Copies of the minutes from 2012, 2013 and 2014
• Documentation for funds that the trustees approved
• Documentation of financial transactions that were approved by the SHI President
• Documentation whether that proves/disapproves SHI money was used for the September 29, 2013 Thunderbird Potlatch and who made decision, the Board of Trustees, or the SHI President
• Financial records of direct/indirect expenditures to support the September 29, 2013 Thunderbird Potlatch
• Provide documentation for travel, hotel, car rentals, dry cleaning & laundry, and compensation and who authorized the payments of Sealaska and SHI
• Was there oversight by the board of trustees in allocating SHI funds for the September 29, 2013 event to avoid the appearance of personal interest?
• Provide documentation of internal controls or policies that protects the non-profit from conflict of interest or decisions involving personal interest?
• Since 1981, how many memorial potlatches (including Thunderbird memorials) were documented, still photographed, or documented using SHI funds?
• Was a still photographer paid to take still photographs, provide expenses and costs?
• Were professional writers paid to write about the event?
• All petty cash usage that has been reconciled with receipts
• Total donations made by Sealaska
• Inventory of all artifacts and value of assets
• Art purchases from Artists
• Monetary awards to staff
• Video equipment loans - Was SHI’s camera loaned to individuals?

Ray Austin
Albuquerque, NM

Received December 04, 2014 - Published December 04, 2014

Viewpoints - Opinion Letters:

Webmail Your Opinion Letter to the Editor

 

SitNews ©2014
Stories In The News
Ketchikan, Alaska

Articles & photographs that appear in SitNews may be protected by copyright and may not be reprinted without written permission from and payment of any required fees to the proper sources. E-mail your news & photos to editor@sitnews.us Photographers choosing to submit photographs for publication to SitNews are in doing so granting their permission for publication and for archiving. SitNews does not sell photographs. All requests for purchasing a photograph will be emailed to the photographer.