Navajo Nation Council delegates said the tribe made a huge mistake by getting into business with a convicted felon.

The Navajo Division of Economic Development failed to investigate the background of Hak Ghun, the former CEO of BCDS Manufacturing Inc. Ghun was convicted of mail fraud, wire fraud, commodity fraud and perjury in 1994 -- information easily found on the Internet, a tribal auditor said.

But division director Allan Begay didn't do his job, according to the audit, and the company is now $4.7 million in debt, including a $2.5 million loan that for which the tribe is responsible. The audit also showed that Ghun may have misappropriated up to $1.5 million in funds that were supposed to belong to BCDS.

"It's so obvious that things were messed up here ... We goofed up," delegate Nelson Begaye said after hearing the results of the audit, The Farmington Daily Times reported.

"The report speaks for itself," delegate LoRenzo Bates said. "It's depressing, it's an initiative that resulted from irresponsibility."

The tribe ousted Ghun but he remains a shareholder in BCDS, which is 51 percent owned by the Navajo Nation. Ghun has since left the area.

Get the Story:
Navajo-backed company owes $4.7M (The Farmington Daily Times 5/21)

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