Problems grow for Las Vegas NAACP chapter

Stacy J. Willis

Wednesday, Oct. 24, 2001 | 10:03 a.m.

Despite the national NAACP leader's promises of a Las Vegas revival, the local branch is becoming more entrenched in controversy.

At a weekend meeting in Los Angeles, the National Association for the Advancement of Colored People board of directors upheld its April suspension of the Las Vegas branch.

And Monday, former Las Vegas president Gene Collins alleged that the national board violated a judge's order by not providing due process before suspending the branch.

But problems in the Las Vegas NAACP began well before this week's events, involve an international gaming company and reflect on the Las Vegas minority community's relationship with its largest industry.

The controversy began unfolding in May of 2000 when Collins uncovered MGM-MIRAGE's failure to use minority contractors -- and, by taking the issue to the news media, forced the MGM-MIRAGE to admit its problem and take action.

"We undertook an analysis, and we found that he was right -- we weren't doing as much as we should have with minority vendors," Alan Feldman, spokesman for MGM-MIRAGE, said. "So we instituted a diversity program, and we've made a lot of progress. And there's still work to be done. But we've always given credit to Gene Collins for discovering the problem."

Feldman said the company created a position specifically to address diversity relations, established relationships with minority groups nationwide and held a minority supplier conference.

But the relationship with the local NAACP grew more complicated when Collins pressured the company to invest $100 million in a westside redevelopment program to make amends for its diversity shortcomings.

"Collins' demands were unreasonable and inappropriate," Feldman said.

MGM-MIRAGE began negotiations with national officers of the NAACP. In July 2000, the NAACP national office sent Collins a letter asking him to stop talking to the media about the MGM-MIRAGE.

But Collins continued to call attention to diversity problems in the gaming industry and was re-elected as branch president by a vote of 159-155 in November 2000.

But in April 2001, the branch was suspended -- a move Collins and a small group of followers allege resulted from "back room deals" between MGM-MIRAGE executives and NAACP national officers.

"The suspension is absolutely a result of the MGM events," Collins said. "The MGM played a major part in the closure of our branch. Instead of talking to us, the MGM immediately started talking to the national organization. I should have been at the table. I should never have been left out. There has been an injustice to the organization, and this is not going away."

In an Oct. 8 letter addressed to NAACP President Kweisi Mfume and Board Chairman Julian Bond, local branch member Katherine McCormick writes, "We ... are deeply saddened that we are forced to ask the parent body for accountability as it relates to the MGM negotiations ... . We demand to know the full text of any agreement between the MGM and the parent body? (sic) If money was exchanged? How much and what for?"

Feldman said MGM-MIRAGE has given hundreds of thousands of dollars to minority organizations to develop diversity programming, including "about $100,0000" to the national NAACP.

Nelson Rivers, NAACP national field operations director, said the suspension of the Las Vegas branch had "nothing" to do with the MGM-MIRAGE.

"Most of that is beneath the dignity of the organization to even respond to," Rivers said. "The continuing suggestion that this has anything to do with the MGM is obviously done as a distraction.

"The truth is, Mr. Collins contacted an international company, the MGM, in an inappropriate manner. In the NAACP, we deal level-to-level -- a branch has no business making deals with a multi-national company like the MGM."

Feldman said MGM-MIRAGE executives worked with national NAACP leaders to develop a diversity program because the company has a national presence. But, he said, they also attempted to work with the local chapter.

However, there have been questions about the local chapter's ability to work effectively in the community.

"Las Vegas is a very important area for us," Rivers said. "That's why we didn't completely revoke the charter, but it's also why we took action to protect our good name there. The branch had problems."

Last spring, national NAACP representatives reviewed the local election in which Collins won the presidency over Lonie Chaney by four votes.

Questions about the membership of some of the voters prompted Chaney to ask for the hearing. National members also reviewed allegations that the local chapter was paying staff members and repeatedly failed to ask permission to take action on issues, as is policy.

The national organization suspended the local chapter for one year, saying that the local chapter had "egregious violations of NAACP policies and procedures."

Upon announcing the suspension, Mfume said, "We will build a new branch in Las Vegas that the city can be proud of and one that will serve as a beacon of justice for all people."

Collins, who still considers himself president of the branch and has a small group of followers, filed a restraining order with the Clark County District Court in an effort to stay the suspension of the branch.

The court ruled on Oct. 4 that the national board had not met due process requirements before suspending the branch and should hold a hearing at its Oct. 20 Los Angeles meeting. Board members say it did that. Collins said the Oct. 20 hearing was inadequate, and he plans to challenge the suspension again in court.

Meanwhile, meetings are being organized locally by national administrators to try to build a new Las Vegas branch -- led by new leaders.

"The existing leaders (in Las Vegas) would have to undergo certain requirements to be reinstated," said Jean Ross, NAACP national spokeswoman from Baltimore.