Ka Wai Ola - Office of Hawaiian Affairs, Volume 10, Number 12, 1 December 1993 — Becoming a player in Hawaiʻi's economic future [ARTICLE+ILLUSTRATION]

Becoming a player in Hawaiʻi's economic future

by the Rev. Moses K. Keale, Sr. Trustee, Kaua'i & Ni'ihau Onee again, I address the question of whether OHA should be directly involved in the establishment of a Hawaiian financial institution and thus

become direct players in Hawai'i's business and eeonomie future. This is the fifth article I have written about this subject since 1990. It has been clear from the very beginning that OHA's destinv would lead it

to become a major player in the shaping of the future of Hawai'i. As we proceed in our work, eaeh step must be carefully planned with one thought in mind — the protection and advancement of the Hawaiian people. It has been clear that our job, as trustees of the Hawaiian people's assets, is to protect and increase these assets for future generations.

In 1990, I suggested that we look into the creation of a bank in whieh we couid deposit our assets and promote the growth and appropriate use of those assets whieh would reflect the needs, goals and purposes defined by our people. As articu-

lated in previous articles, nations are dependent on their banking system for eeonomie growth. Hawai'i's history has shown that eaeh immigrant labor group entering Hawai'i eventually established a bank whieh reflected

their cultural identity. Dividing our assets among numerous outside managers, investment companies and banks, allows them to dictate our success or failure, whieh should rather be determined by our own policies and practices. We should be able to gain profits without expending additional amounts. An institution of our own would

address this. Our people require a sound educational foundation, decent employment opportunities, adequate wages, and proper and affordable housing in order for us to assume a role of leadership in these islands. Although we eontinue to work on increased employment opportunities, we have only made small impact. With regard to housing, we have just begun to look at more direct participation in a housing program. To build houses, we need two resources: Iand and fmancing. Housing is synonymous with mortgage financing. Why should we be parceling our resources to others? With our own bank, we ean encourage people to invest in our future through savings deposits, carry our own financing, set our own criteria for lending and credit, and set our own interest rates to charge our customers instead of paying others to do this job. Instead of giving our assets to other banks and money managers to control for a fee, we

should build our own financial institution and retain the fees and profits associated with banking and financial institutions. Over the past few years, we have hired the reputable firm of Grant Thornton to produce a business plan for the formation of a Financial Services Loan Company — a bank. The report was excellent and directs us in establishing a sound foundation for this program. On Oct. 20, 1993, my committee on PIanning, Eeonomie Development and Housing met to receive and deliberate on the Grant Thornton report and recommendations. After extensive review, it was our general eoncensus to proceed with implementation. We have forwarded our work to the committee on Budget and Finance, and then it goes to the Board for final eonsideration and approval. Unfortunately, we could not begin this program prior to securing our large cash settlements with the state. As we seek greater indepen-

dence and self-sufficiency, we must take greater responsibility for, and more directly control our assets to make them work for us and not others. We must demonstrate that we ean govern ourselves and our assets independent of the state, and the dictates of the state's large eeonomie powers. I appeal for your direct support on this important issue. Let us hear from you.

I offer a public apology to H.K. Bruss Keppeler, president of the Association of Hawaiian Civic Clubs, and Claire Hughes for the rude treatment they received from OHA when requesting funding for the heahh screening of our Hawaiian people at the civic club convention.