The Ojibwe News (Bemidji, Minnesota), 1990-03-07

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Red Lake Health Care delivery system insolvent
The News has documents and
information obtained through the
Freedom of Information Act and the
Minnesota Data Practices Act that
indicate the Red Lake Health Care
Delivery System is insolvent.
Financial records indicate that the
Red Lake IHS Hospital is over
$800,000 in the red and the Red
Lake Comprehensive Health
Program is $200,000 in the red.
In addition, a Minnesota
Department of Human Services five
month financial analysis dated
February 2, 1990, for the Red Lake
Nursing Home states as follows:
"The current position of the
organization is solely dependent on
the exemption from Medicare
routine cost limits. Since the
exemption is a temporary provision
for new providers, liquidity
problems will certainly result once
the Medicare intermediary
determines that sufficient data is
available to impose the routine cost
limits to which all skilled nursing
facility providers are subject."
That means once Blue Cross-Blue
Shield of New Mexico (Red Lake's
medicare intermediary) has
sufficient financial information to
establish rates based upon actual
costs which are reasonable and
necessary, the Red Lake facility will
be forced to reduce their charges of
$274 per day.
Estimates are that the $274 per day
rate will be more than cut in half.
In addition, if the intermediary
determines that Red Lake charged
excessive interim rates, then the Red
Lake facility could be forced to
repay the government the amount
found to be in excess, or the
government would reduce future
payments by that amount.
A source told the News that a
compliance audit of the facility was
scheduled for April 1990.
The News also learned that the
Red Lake Nursing facility is
currently delinquent for not
submitting reimbursement cost
reports for the months of December
1989 and January 1990.
The facility has been operating
without a State of Minnesota
licensed administrator for the past
two months, recently filled that
position. The News was unable to
learn the name of the new
administrator by press time. Former
administrator Patrick McNeil
resigned in mid-January 1990, citing
usurption of authority over the
facility by Red Lake Tribal Health
Director Monte Hammitt, unethical
practices and lack of quality care
provided for patients.
The Red Lake Nursing Home,
which has been named the
Jourdain/Perpich Extended Care
Facility was built with $2.85 million
of State of Minnesota Bond funds.
The facility which is state owned has
been sub-leased to the tribe to be
operated as an elderly home.
According to the operating lease
dated December 21, 1987, the tribe
gave the State of Minnesota a 25
"year land use premit for the purpose
of constructing the facility. Terms of
the lease require the tribe to pay the
state $27,000 per month for a
minimum of 12 years or for what
ever period of time is required to
pay off the bonded indebtedness.
The 47 bed facility which was
opened last July 15, continues to be
plagued with less than a 50 percent
occupancy.
The Red Lake IHS Hospital
employs a staff of over 80 persons
and has an annual budget of
approximately $5.5 million. In
addition the Tribal Council receives
$2.6 million of IHS funds to operate
the Red Lake Comprehensive Health
Program pursuant to P. L. 93-638.
That program employs nearly 75
persons on the reservation.
Insolvent/ see page 2
"Voice   of ttte??Amist>iira.b&
Fifty Cents
Copyright, the Ojibwe News, 1990
Bemidji, Minnesota 56601
A Bi-Monthly Publication
Houses built by Red Lake Builders substandard?
Residents complain of problems in construction, size and design of homes constructed on the Red Lake Reservation—
By Mark Boswell
Editor
Houses built by Red Lake Builders
in Red Lake, Redby, and Ponemah
are substandard. This is the belief of
some who have been involved with
the construction and it is the opinion
of residents occupying these homes
on the Red Lake Reservation.
The houses in question include
approximately 80 to 100 such
dwellings in and around that
reservation's communities.
Each house, built with grants from
the Department of Housing and
Urban Development and Minnesota
State Housing Finance and other
organizations, should conform to
guidelines set up by those
government agencies. Red Lake
Builders, a corporation operated by
the Red Lake Tribal Council, the
contractor for the buildings, is also
responsible for making sure that
these buildings adhere to code.
An outside architect is typically
brought in to make sure that the
houses adhere to building codes
designed to guarantee the safety and
compliance of the buildings.
Ed Rotenberger, an architect from
Detroit Lakes who has "done some"
inspecting for the Red Lake Housing
Finance Department, stated that Red
Lake Housing "trys to follow as
closely as they can to the Uniform
Building Code, but they're trying to
develop their own code."
According to Mul Rahmah, of the
Of an estimated 80 to 100 houses *e this one built in Red Lake in the past decade, many, fike this one have only one door.
the typical residences built on the
reservation.
HUD Office of Indian Programs in
Chicago, "the architect will make
sure that the housing authority or
tribe at least satisfies the state or
county codes" for the construction of
housing. Differences in code and the
development of new codes for
reservations come on the heels
changes HUD made when they
eliminated the minimum property
standards in 1987.
Regardless, the residences in Red
Lake could pose a potentially
hazardous trap for occupants should
fire block the single door. Each of
the residences has only one door for
access into and out of the building.
The homes are in fact legal
because the minimum code
requirement for fire exits on homes
with less than ten occupants requires
only one door. With window access
to bedrooms of no less than 5.7
square feet.
According to residents familiar
with the construction of the homes,
the travellings are built with inferior
materials. Estimated to lie
constructed for $36,000, residents
claim that the 24 feet by 30 feet split
entry dwellings utilize substandard
and shoddy materials.
Leaky and stained ceilings, floors
that must be replaced within a year,
of  completion,   and   other
construction related problems plague
Other seemingly well-constructed
tug-type fei-xnesihave b.~po plagued
by fires that have whittled their
numbers down to a handful.
According to News sources close
to Red Lake Builders, the dwellings
in question have been erected with a
30% profit over the original budgets
granted by HUD or other agencies.
Dissatisfaction with the dwellings
photos by Mark BosweH
is a symptom that residents have
learned to live with. "The council
says that I should be happy that I've
got- a place to live at all," said one
frustrated resident who has also been
employed by Red Lake Builders.
20 new housing units are expected
to be built by HUD and Red Lake
Builders this summer.
George Gaasvig, Executive
Director in of the Housing Authority
was unavailable for comment.
Gerald "Butch" Brun
resigns from RLTC
By Mark Boswell
Editor
"People have been asking me if
I will run for the chairmanship,"
said Gerald "Butch" Brun. "To that
question I'd have to say yes I am
running for chairman."
Brun, lifetime resident and past
councilman for the Red Lake
Tribal Council has announced his
candidacy for the position of
Chairman, currently held by Roger
Jourdain.
Jourdain, who has held the post
for 32 years has not announced his
candidacy or endorsed any other
candidate.
Brun recent resigned from his
post as Redlake district
representative for a couple of
reasons. "Well, I planned on
running for chairman and by
resigning early I gave the council
time to put my position as
councilman up for a two year
term." Brun has only completed
two years out of the usual four
year term as Redlake
representative.
Brun isn't sure whether the
council will decide to open the
position up for a vote or appoint
someone to serve out the two years
Announces
candidacy for
Red Lake
Chairman
remaining on Brun's term.
"I kind of expect that Roger will
use my position as councilman and
offer it to this person or that
person in hopes that this big family
or that big family will support him
in the upcoming election," said
Brun. "He uses things like that to
his advantage."
Brun thinks that he has given the
council ample notice to open the
council position for the upcoming
June elections.
Brun believes that he is the only
candidate that has proper support
because of his residency.
"My name will be on the ballot
definitely, I 've got my residency
requirement without a doubt," said
Brun. He referred to the problems
of residency status of both Roger
Jourdain and William J. Lawrence,
both reside in Bemidji.
Solid support from the Red Lake
Butch/ see page 2
Vermilion may secede from Bois Forte Reservation
By Mark Boswefl
Editor
Bois Forte Reservation residents
living in Vermilion are considering
seceding from that reservation
because of political and economic
differences that have divided that
reservation's estimated 550
residents.
The two reservation properties,
that make up the Bois Forte
Reservation were joined together
under a 1881 Presidential Order that
gave Ojibwe people living near Lake
Vermilion the legal right to retain
residence there while becoming a
part of the Bois Forte Reservation,
some 60 miles to the west.
According to reservation enrollees,
the differences run deeper than the
physical distance between these two
northern Minnesota communities.
Phyllis Boshey, spokesperson for
Vermilion residents supporting the
secession, said: "our Reservation
Business Committee isn't Working
together." In the last year, Bois Forte
has seen a series of conflicts within
the the RBC that has virtually
paralyzed the governing of that
reservation.
Last fall, the News reported that
Bois Forte Secretary-Treasurer,
Lester Drift Sr., was charged with
malfeasance by the RBC because of
questionable practices  conducted
Bois Forte RBC expected to block decision
because of Fortune Bay Bingo profits
with tribal monies and powers.
In November, district
representative Jacqueline McKeon,
was removed from her post after
accusations that she had, according
to Drift, "turned her back on her
supporters."
Residents of Vermilion have "seen
enough" of this kind of conflict and
are expected to begin legal
procedings to break away from Bois
Forte.
The Bois Forte RBC is expected to
block the separation because of
economic gains the reservation
would have coming from Fortune
Bay Bingo in Vermilion. Bois Forte
has virtually no economic growth
generation from the Nett Lake area
besides the reservation government
and a small logging industry.
Vermilion, on the other hand, with
Vermilion/ see page 2
Tom Cain dies at age 84-
Tom Cain
submitted photo
Tom Aloyoius Cain, 84, widely
known resident of Ponemah and
Red Lake, died on March 1st in
Minneapolis.
Born April 5, 1905 in Ponemah,
Mr. Cain died March 1, 1990 in
Minneapolis. Services were held at
the Little Earth United Tribes
Community Center, in Minneapolis,
March 2nd at 8:00 p.m. Father Jim
Notebarrt officiating. Additional
services were held in Ponemah over
the weekend.
Mr. Cain is survived by his wife
Gladys, who lives in Minneapolis;
sons: Michael Douglas Cain who
lives in Gloster, Va., Thomas James
and George Patrick Cain who both
live in Minneapolis; and daughters:
Diane Neeland of Bemidji and Shirley,
Nancy, and Anna Cain of Minneapolis.
Mr. Cain is also survived by his
first wife, Helen Johnson, who
resides in Portland, Oregon. Sons
from that marriage who survive
include: Tom'Mitchell Johnson of
San Francisco, Calif, and George
Patrick Johnson of Huntington
Beach, Calif. He is also survived by
sisters Annie Herman, 83, of
Bemidji and Mary Woodruff, 87, of
Tacoma Wash., and niece Kathy
Beehler of Bemidji.
Mr. Cain was proceeded in death
by daughters Susan Cain and Phyllis
Johnson.
Low interest loans made available $1,000,000 diverted from
Builders Account at Red Lake
RLTC controls Red Lake loans/projects
By Mark Boswell
Editor
The Indian Business Loan
Program has been making available
to Minnesota-based Indians
opportunities to establish or expand
business enterprises through
low-interest loans.
The News obtained a listing of
those businesses that have received
or are going to receive such loans in
the near future. The program, which
enables Minnesota-based projects
greater resources for management
and/or techinical assistance, has
been in operation for nearly ten
years.
Under the program the Red Lake
Tribal Council received two such
loans, notably other reservations
made such loans available to
individuals; Red Lake loans went,
solely to fund enterprises operated
by the RLTC.
"We have another complaint
pending on Red Lake," said Arne
Carlson, State Auditor, "the
jurisdiction of all of the Indian
reservations lies with the Legislative
Auditor, Jim Nobles."
Carlson is familiar with other
complaints stemming from the
operation of the health care facility
Loans/ see page 2
According to information and
documentation obtained from
sources on the Red Lake
Reservation who prefer to remain
anonymous, the News has recently
learned that losses from operation of
the now-defunct Red Lake Boating
Center total over $1,000,000.
On February 1, 1989, the News
carried a front page article entitled
"Funds allegedly diverted from Red
Lake Builders Account," which
reported that nearly $400,000 in
funds belonging to that tribal
enterprise were diverted to cover
losses at the boating operation and
for Red Lake tribal chairman's
Roger A. Joudain's personal use.
The newly acquired information
reveals that an additional $600,000
was diverted from the Red Lake
Builders account to cover losses
from operation of the Red Lake
Boating Center. Records indicate
that Jourdain, tribal business
manager D. Michael Petersen, and
several members of the Red Lake
Tribal Council were owners of the
Boating Center.
The primary business of the
Boating Center was the retail sale
Diverted/ see page 2
Fea/txjtjres jpsL^&z
Reservation youth, here and elsewhere, face difficult and compromising times. Drag and
alcohol abuse, high drop-oat rates and impoverished Bmg comikionsseemtobethe
nonn. The Atews examines these problems m" Outside Looking lB",*hopdral story    -Jfry
afcoar youth «the GfaRiwIiidtt^ ^%A
The Federal Government and
American Indian Natural Resources
Why has the Department of the Interior, charged with the responsibility to
protect Indian natural resources, failed to launch an investigation after
the Senate Select Committee found widespread fraud affecting Indians ?
 See page 10 for our In Depth account.        .
V