Ka Wai Ola - Office of Hawaiian Affairs, Volume 31, Number 7, 1 July 2014 — TRASK, [ARTICLE+ILLUSTRATION]

TRASK,

Miinani u. Bl Honolulu, Hawai'i H Kamehameha Schools Cl 'Ōla'a, Hawai'i K: Hāna, Maui, and Moloa'a, Kaua'i

1. OHA needs to amend policies to ensure it hires the best independent investment/financial adviser and that that person reviews S presents to the B0T a critigue of all investments S acguisitions, including the documents, agreements S contracts relating to the investment transaction, before the OHA B0T votes in order to ensure that the B0T fully understands the transaction and that it is in the best interest of the Trust. In the case of Kaka'ako, the properties were not zoned for 400-foot residential high-rise use, but the State S OHA appraisals were valued at that height for a phantom value. The net loss to the Trust, if the Settlement deal is not renegotiated, is estimated at $100 million. These transactions were reviewed S approved by 0HA's legal counsel, CE0 S Board, but no one had the expertise to identify the problems. The OHATrustees signed off on Kaka'ako but never actually read or personally reviewedthedocuments! 2. OHA needs an attorney on its board acting as a Trustee. The Trustees often do not understand what their fiduciary obligations are or what they arereguiredtodoas Trustees. One example of this is the recent legal case brought by Trustee Rowena Akana against the B0T for conducting public business in "Executive Session." This guestionable practice is often used at OHA to facilitate private discussions, avoid beneficiary S public disclosure of information & avoid transparency. In reality, the OHA Trustees have a fiduciary duty to keep beneficiaries informed and to provide regular accounting to beneficiaries. Hawai'i law allows for Executive Session discussions only in limited instances. In some cases the B0T have been manipulated or misled by advice of their ln-House Counsel, who are supposed to advise the B0T but often act to support the Chair of the OHA Committees or Board.This has also been used by Trustees, in the past, to avoid liability because "we were just following our attorney's advice." My legal skills S experience will be of great use at OHA S hopefully will prevent problems like the Kaka'ako Settlement fiasco from recurring and negate the necessity of future Trustee litigation against the B0T.