Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 5, 1 May 1996 — OHA in crisis [ARTICLE+ILLUSTRATION]

OHA in crisis

by Rowena Akana T rustee-at-Large This year, the battle with Governor Cayetano and certain members of the legislature has been intense. As they desperately look for ways to bail the state out of its financial woes, the revenue stream of the Office of Hawaiian Affairs has jumped to the top of their hit list. As we fight to protect our entitlements, it is obvious that the Cayetano administration has no intention of honoring the state's agreement with OHA to pay the 20 percent revenue share owed to Hawaiians, And why isn't anyone asking how the state's Budget Director, Earl Anzai, ean

advise the governor on what ceded land revenues to cut off from OHA, when prior to being hired by thc state, he was being paid by OHA to tell us how to protect those entitle- I ments? Isn't anyone going to cry I foul? As we collectively put our I heads together and arm ourselves 5 against the state government's attempts to steal our lands, we must also worry about the enemy within. It's no secret that the general pub- ■

lic's view of our office and its Trustees has been critical. There is also the prevailing attitude of many Hawaiians that OHA cannot be trusted. This attitude is not without merit. Fighting within an organization is never good for its public image. However, when repeated efforts at getting to the truth have failed, sometimes displaying our dirty laundry in public is the only means we have left to bring serious problems at OHA to the attention of our beneficiaries. Examples of frustration and misconduct: • Our administration hired a 10th money manager and transferred $10.5 million without approval of thc Board of Trustees. • Our administration transferred $500,000 to the Education Foundation without Board notification. • Our administration transferred $2. 1 million to an escrow company on March 17, 1995 for the purchase of the Opukaha'ia School without a signed contract or memorandum of agreement approved by the Board of Trustees.

• Memos to our administration questioning eontract hires and movements of budget moneys. No response. • Memos to our administration asking for information that would identify and explain numerous bank accounts that Trustees didn't know existed. No response. • Memo asking our administration to explain why OHA never received a completed video of the Kaho'olawe Healing Ceremony after paying $50,000 nearly 4 years ago. No response.

I • Inquiry as to why OHA uses First Honolulu Securities as its broker of record when it has no seat on the stock exchange. No response. • Memo to Martha Brown of Merrill Lynch (OHA's money monitor) asking how mueh eaeh of OHA's nine money managers is charging us. No response. • Inquiry to First Honolulu

Securities asking for a list of commissions charged OHA and eaeh money manager. No response. These are only a few examples of the poor intemal management of OHA's leadership. There are many more. As elected trustees, we can't give up the fight for accountability just because there's a public perception that all we do at OHA is engage in petty squabbles. Let me assure you, there is nothing petty about fighting over critical issues that involve our tmst money! As trustees, we can't give up the fight to make our Chairman and his administration accountable just because we might take some hits on our puhlie image. Image is nothing compared to the fiduciary responsibility every trustee is mandated to uphold. As an organization, we ean live with an image problem ... as long as our infighting continues to focus attention and public scrutiny on the questionable activities of our leadership. Under Clayton Hee's direction and during his watch, OHA is in crisis.