The 21st council was seated in January 2007. Speaker
Lawrence T. Morgan was elected for a third term after winning a run-off election against Delegate Harold Wauneka of Fort Defiance. • BCDS Manufacturing Inc. • In June 2007, Budget and Finance Committee Chairman Lorenzo Bates revealed that the council did not exercise prudent enough due diligence before investing in BCDS. • In a special session held on July 17, 2008, the Council declared involvement with BCDS a total loss. • OnSat • A 2007 tribal audit found that OnSat had overbilled for service and that the tribe had not complied with procurement policy regarding the competitive bidding process to select OnSat. OnSat found its federal E-rate program agreements in jeopardy. The program reimbursed between 85% and 90% of the costs associated to provide internet services to the tribe's 110 municipal chapter houses.
2008 President announces election to reduce council to 24 On April 29, Navajo Nation President
Joe Shirley Jr. proposed reducing the Navajo Council from 88 members to 24 members. The election would change the dynamics of the council in 2011. • OnSat • OnSat service was disrupted in 2008 over nonpayment disagreements. • BCDS • In December 2008, the tribe and the Council were forced to pay outstanding debt related to the bad loan made to BCDS in 2005.
JP Morgan Chase received $2.2million from tribal accounts.
Mid-term In January 2009, Speaker Morgan was reelected speaker, to a fourth term. The election made him the first speaker to serve eight years in that capacity in the Council's modern history. President Shirley addressed the Council in the annual State of the Navajo Nation address on January 24, 2009. Shirley spoke of his conviction of the need to develop a new governing document for the Navajo Nation. Shirley had campaigned to return government to the Diné by government reform. • Shirley ouster • During the first week of October 2009, the Council met in private and special sessions. Then on October 26, the council voted 48–22 to remove President Shirley from his official duties. The council had originally included removal of Vice President Shelley as well. Allegations had been swirling around the four-corners states alleging improper dealings with Utah-based OnSat Technologies, and a biochemical company at Shiprock, New Mexico. Shirley's chief of staff and other members of the senior staff were also removed. • OnSat CEO Dave Stephens and former Navajo Nation Telecommunications Regulatory Office director Ernest Franklin were not targeted in this action. • On October 27, 2009, members of the Council released a statement addressing the allegations of retaliation and denying them. • Discretionary spending • In December 2009, the Council called for a special prosecutor to look into
President Shirley's relationship with two companies that had operated on the reservation.
Attorney General Louis Denetsosie focused the investigation on the tribe's contractual relationship with the Utah-based satellite internet company OnSat; the $2.2million loan guarantee to BCDS Manufacturing Inc.; and payments from the council's discretionary fund to family members of several legislative-branch employees. • 24 votes and the presidential line-item veto • In a special election held on December 15, 2009, tribal members voted 61% in favor of reducing the Navajo Nation Council from 88 members to 24 members. In the same special election, tribal members voted 59% in favor of allowing the President of the Navajo Nation to perform a
line-item veto.
2010 At the meeting of the council on January 13, 2010, Council Delegate Jonathan Nez announced changes to Title 22 of the Navajo Nation Code that would take place in the wake of the majority of the tribe's membership voting to reduce the size of the council to 24 members. In a decision on May 28, 2010, the
Navajo Nation Supreme Court ordered immediate implementation of a redistricting plan. • Probe of the council's discretionary funds • Following a three-judge panel's review of three applications, the special division of the Window Rock district court named Alan Balaran as special prosecutor, to begin work in early February 2011. Balaran, who had served as the court-appointed
special master in the Cobell Indian Trust Fund case, would act under the jurisdiction of the special division. Balaran's investigation was later expanded to include a tribal ranch program and discretionary funds given to the Shirley administration. • In October 2010, a special prosecutor for the Navajo justice department filed charges against members of the then 88-member Navajo Council, three weeks before the November 2 election. The investigation returned findings of serious misuse of discretionary funds. The funds were designed to be made available at the direction of lawmakers for any number of community causes, activities, and emergencies deemed appropriate by council delegates. • Attorney General Denetsosie outlined allegations that centered on an elaborate conspiracy of members of the council to give discretionary funds to family members. The scheme involved participating members hiding the transactions behind the vagueness of the law establishing the funds, and the loosely audited dispersal of funds from the legislators' offices. The investigation and trials would continue to the end of the 22nd Council. • Suspected delegates were served official complaints just before the Council convened for the fourth day of their Fall 2010 session. • In early November 2010, the Council was unhappy with the special prosecutor's focus on the legislature's misuse of discretionary funds, and it organized the removal of several functionaries that the Council thought were responsible. On November 4, 2010, the council voted 42–0, with two delegates abstaining, to order legislation terminating the employment of Attorney General Denetsosie and his deputy, D. Harrison Tso. • On December 23, the council opposed the removal of the deputy attorney general, in a 65–3 vote. Another bill to remove the attorney general was introduced but not debated. ==22nd council (2011–2014)==