Salem, OR. – The Salem Area Mass Transit District, known as Cherriots, reported this week that no district funds or programs are connected to a nonprofit now under investigation for financial mismanagement, after reports surfaced linking one of its board members to the troubled organization.
In an October 30 release, Cherriots acknowledged public concerns following media coverage of the Oregon Childcare Coalition, a Salem-based nonprofit reportedly facing bounced payroll checks, unpaid vendors, and allegations of possible embezzlement. The district said that while board member Ramiro “RJ” Navarro holds a leadership role with the organization, “no District funds, programs, or resources are involved.” The situation underscores the importance of strong nonprofit governance structures.
Cherriots reported that it is “closely monitoring the situation” and consulting with legal counsel to ensure its response aligns with governance obligations. The statement added that the district would not comment further, calling the matter a personnel and legal issue involving another entity.
The Salem Business Journal detailed the Oregon Childcare Coalition’s financial collapse earlier this month, citing employee complaints and a pending police investigation. Navarro was identified as both the nonprofit’s board president and interim executive director.
While Cherriots’ public report sought to distance the agency from the nonprofit’s difficulties, the timing of the statement suggests a growing sensitivity within the transit board to reputational risk. Questions may remain about what internal disclosure or conflict-of-interest reviews the district has undertaken and whether additional oversight steps are forthcoming.
The district’s release reaffirmed that “our priority remains delivering safe, reliable, and accessible transit to the people of Salem and Keizer,” but it stopped short of addressing whether Navarro’s board role could be affected.
Cherriots board meetings and governance materials are publicly available through the district website. No special meeting regarding the issue has yet been announced.
Cherriots full statement:
The Salem Area Mass Transit District (Cherriots) is aware of recent media reports regarding a private nonprofit organization currently facing financial challenges and related allegations. One of the individuals involved in that nonprofit, Ramiro “RJ” Navarro, serves as a member of the Cherriots Board of Directors.
We understand that members of the public may have questions about whether the situation impacts Cherriots operations or the use of public funds. We want to be clear: the matters being reported are unrelated to Cherriots, and no District funds, programs, or resources are involved.
The Cherriots Board of Directors takes its governance responsibilities seriously. We are closely monitoring the situation and consulting with legal counsel to ensure that our actions remain appropriate and aligned with our obligations to the community. As this is a personnel and legal matter involving another organization, Cherriots will not be commenting further at this time.
Our priority remains delivering safe, reliable, and accessible transit to the people of Salem and Keizer.
About the Author
Where did they release this statement? RJ’s actions of writing bad checks to employees effects their riders, closing down the childcare in an attempt to save his reputation affects their riders…
He’s proven he is not trustworthy or a good steward of public funds.