Over the last decade, many Alaska Native Corporations have massively blossomed into multi-billion dollar corporations by scoring sole-source, no-bid military industrial contracts. The ANCs have exploited a loophole at the expense of tax payers with little or no benefit to their own Alaska Native shareholders. The ANC’s have the ability to receive contracts of any size from a federal agency as part of a Small Business Administration program for minority and disadvantaged small business.
Recent government investigations and news reports have exposed how the ANCs have capitalized on the unique benefit and created complex business relationships with Outside multinational corporations that have no ties to Alaska or the SBA program.
Despite the multi-billion dollar contracts and record earnings of the 19 largest ANCs, the average annual payout to 130,000 of the Alaska Native shareholders is approximately $615. In addition, a GAO Congressional Report found that most of the executive compensation is awarded to employees that are non-native. Overall, only 5% of the employees at ANCs are Native Alaskans.
According to a recent US Senate Committee Report, the value of Alaska Native Corporation contracts mushroomed from $508.4 million in 2000 to $5.2 billion in 2008 an increase of 916%!
In most publicly-traded companies, the Chief Executive Officer is the most highly-paid employee. According to the senate subcommittee report, for one or more years between 2000 and 2008, eight ANCs paid their CEO, a (native) shareholder substantially less than a non-(native) shareholder holding a lower-ranked position.
This week on Moore Up North we examined tribal sovereignty, the Alaska Native Corporations and the connection to the huge growth in no-bid federal contracts.
My panelists were:
Larry Merculieff is the former City Manager of St. Paul Island, Commissioner of the Alaska Department of Commerce and Economic Development, President and CEO of Tanadgusix Corporation, Chairman of the Board of The Aleut Corporation, and General Manager of the Central Bering Sea Fishermens Association.