The O’Keefe Media Group has unveiled troubling undercover footage revealing a stark violation of trust within government contracting. The interactions focus on executives from Chenega and Cherokee Federal who acknowledge that ‘Native-owned’ firms are exploiting loopholes in the system. This admission raises significant questions about accountability and integrity in federal contracts.
One key figure in this exposé, Ricky Longhurst, Senior Account Executive at Cherokee Federal, did not mince words when he described the situation as straightforwardly dishonest. He stated that these firms are manipulating their status as Native-owned businesses to “cheat” the government while pocketing millions. This admission isn’t isolated; it represents a systematic issue festering in the contracting landscape.
Further shedding light on the dubious practices, Mike Montgomery, President of Chenega Architecture and Design, elaborated on financial arrangements involved. He detailed how revenue generated from contracts is split, revealing that 63% goes back to the business while only 37% is funneled back to the tribe for essential infrastructure. This financial breakdown paints a vivid picture of how the business operates—profiting by exploiting the very foundation meant to benefit Native communities.
When pressed by an O’Keefe Media Group journalist about the apparent incongruity of his non-Native identity and the Native ownership claim, Montgomery’s response was alarming. He acknowledged, “I’m not Native, no,” claiming that while he lacks the necessary background, business executives are hired specifically for their savvy in navigating federal contracts. The board members, he noted, consist primarily of Alaskans from the Chenega Tribe, raising questions about the depth of their involvement versus the actual management of the contracts.
This scandal is compounded by prior revelations from O’Keefe Media Group, where another executive admitted that the majority of the work contracted out goes to subcontractors, reducing the actual work done by these firms to a mere fraction of what they claim. Melayne Cromwell, Manager at ATI Government Solutions, bluntly stated that they “only do 20%… the rest goes to subs.” These revelations suggest that the integrity of the entire process is at risk, as these companies reap substantial benefits from government contracts while failing to deliver on their end.
The impact of these admissions has not gone unnoticed. Following the release of this undercover footage, Small Business Administration (SBA) Administrator Kelly Loeffler announced decisive steps to address the rampant abuses in the 8(a) program. Her agency has reportedly suspended more than 1,000 firms from participating in the program designed to help disadvantaged businesses. Loeffler emphasized the need for “immediate action” against those exploiting the system, signaling a potential shift toward greater oversight and enforcement.
This series of undercover revelations calls into serious question the mechanisms in place for ensuring that federal contracts are awarded to those genuinely deserving of support. There is a clear and pressing need for reform to protect taxpayer dollars and ensure that programs designed to empower minority and disadvantaged businesses fulfill their intended purpose.
The O’Keefe Media Group’s persistent efforts to uncover these truths serve as a reminder of the essential role investigative journalism plays in holding powerful entities accountable. As the story develops, it remains critical for regulatory bodies and the public to advocate for transparent practices that honor the spirit of federal contracting and safeguard the interests of all Americans, particularly those represented by these programs.
"*" indicates required fields
