To the editor:
I believe that the Hopi villages need to know what the special session of the Hopi Tribal Council approved on July 29. Two resolutions were approved by a vote of 10 for and three against.
The first resolution increased the line of credit from $10 million to $15 million under the line of credit master agreement between the Hopi Tribe and Wachovia Bank.
The second resolution increased the loan to the Moenkopi Developers Corporation from $4 million to $11,651,000.
This was made possible because the Tribal Treasurer Russell Mockta transferred about $50 million from Hopi Tribal investments to Wachovia Securities. The Tribal Council had authorized $10 million by resolution to be moved to Wachovia Securities last year and nothing was authorized to move more than that.
The loan of to $11,651,000 to Moenkopi Development Corporation will enable them to construct their hotel and conference center for which apparently the Wachovia Master Agreement line of credit was established.
The total 30-year loan to the Moenkopi Development Corporation is about $19 million and their quarterly payments will be about $131,000. Whether they will be able to meet this payment will be determined in the future.
Mr. Nuvamsa scheduled this special session when the Water and Energy Task Team [were] in Phoenix. Those council supporters ... on the team stayed home to vote their approval on these resolution. Mr. Nuvamsa, who signed these resolutions as their author, had no intention that these resolution would be referred to the rest of the Hopi villages for their comments.
I absolutely believe they should have been tabled and referred to the villages for their comments because these millions of dollars belong to all the Hopi villages, not to the one village of Upper Moenkopi, least of all to a development corporation which [has] no credit history. This the reason why myself, Donald Humetewa and Archie Duwahoyeamo voted against these resolutions. The bottom line is that millions of Hopi money is now at extreme risk.