Tag: OHA Board

Embracing Transparency: New Leadership finally comes to OHA

JANUARY 2015 KA WAI OLA COLUMN

`Ano`ai kakou…  Happy Year of the Sheep!  Big Island Trustee Robert Lindsey has been selected as our new Chairman of the Board.  Trustee Dan Ahuna is our Vice-Chair.  Trustee John Waihee IV chairs the Beneficiary Advocacy and Empowerment Committee and Trustee Hulu Lindsey chairs the Land and Property Committee.

As many of my readers know, I have worked diligently for many years to make OHA accountable to our beneficiaries and to make our decision making process more transparent.  This call for openness has made me very unpopular with the past two OHA Chairs.

After years of having my requests get absolutely nowhere, I was finally forced to file a lawsuit against OHA in September 2013 to make it more transparent.  Now that a new leadership team is in place, this lawsuit may no longer be necessary.

As the new Chairperson of the Asset & Resource Management (ARM) Committee (henceforth the “Budget & Finance” Committee), I will oversee all fiscal and budgetary matters and ensure that OHA’s trust fund is properly management.

The Budget & Finance Committee also oversees OHA’s real estate and develops policy on land use, native rights, and natural and cultural resources.  It also approves all grants and evaluates OHA programs to decide whether we should continue funding them.

Now that decision making has shifted to a new majority, I feel confident that our beneficiaries will be pleased with the upcoming changes.

EMBRACING TRANSPARENCY

If you haven’t already heard, you may now go to OHA’s website at http://www.oha.org/about/board-trustees to watch live meetings of the OHA Board of Trustees.  Be sure to tune in on the days we have our meetings.  For a meeting schedule, please call me at (808) 594-0204.

NEW LEGISLATIVE SESSION

Mahalo nui loa to Governor Neil Abercrombie for his constant support of Native Hawaiian issues, which goes all the way back to championing the Akaka bill while he was in Congress.  He can take pride in being the Governor that finally made the ceded lands settlement a reality with the transfer of Kakaako Makai to OHA.

I would also like to thank State Senators Malama Solomon and Clayton Hee, and Representative Faye Hanohano for their dedicated service to the Native Hawaiian Community while serving in the state legislature.  I wish them well in their future endeavors.

While OHA now has to work even harder to educate the new incoming legislators on unresolved Native Hawaiian issues, I have high hopes that we will have another successful session and get more things done for our beneficiaries.

Aloha Ke Akua.

Power corrupts; absolute power corrupts absolutely

`Ano`ai kakou…  As a senior Trustee, I have managed to live through some very difficult times within the walls of OHA over the past 23-and-a-half years.  As Trustee and staff members come and go, it never fails to amaze me about how they both come into our institution thinking that OHA began with them and they try to re-invent the wheel.  They didn’t bother to learn OHA’s history and the difficult ground we had to cover over the past 30-years to be where we are today.

SCHEMES TO STIFLE TRUSTEES

Like other political offices, when some Trustees take over the power structure here, they manage to bring their “own” people into the organization and place them in strategic places throughout our offices, like the fiscal department, the legal office, and so on.  Consequently, even when they are no longer in the “driver’s seat,” they can still control the board through these staff.  This has become a debilitating factor for OHA Trustees who want to do their best to manage the Trust since these staff members who are loyal to just a few Trustees can put up stiff opposition almost at every turn.

Now, we can’t write anything specific about what goes on within the offices of OHA.  A Trustee is prevented from printing their columns in our newspaper because OHA’s “legal eager beavers,” who want to please those who keep them employed here, will find every excuse to stifle a Trustee and prevent them from talking about things that go on here.

OHA’s leadership will also go so far as to pass a specific policy to stop certain Trustees from calling attention to something they don’t want the public to know.  The kicker is, in my opinion, those rules are made up by lawyers who work for us, but are loyal to only a few Trustees.  This strategy works against Trustees in the minority who usually do not agree with the power structure.

Another trick is to put items on the agenda in an executive session instead of open session, thereby excluding the general public from listening to the discussion.  If this isn’t enough, they further silence the Trustees by telling them that they can’t speak about what was discussed, and then they lock-up the minutes, so that even the Trustees do not have ready access to them.

Even when a super majority of six Trustees vote and approve a money appropriation, the staff members are prevented from acting on the action because they are being instructed to throw up road blocks and make excuses to slow the process or prevent it from happening at all.

For a very long time now, OHA has not been able to really function as a Trust.  It has become a political entity, where power is more important than fulfilling our mission to better the conditions of OHA beneficiaries.  You might say OHA looks more and more like the dysfunctional Congress.

Until the public elects people to the board who truly want to serve OHA’s mission and who have the best interests of the Trust and our beneficiaries in their heart, OHA will continue to function at half-speed instead of full-speed ahead.

Kakaako Makai properties sidelined by Gentry Pacific Design Center purchase

NOTE: This column that was censored from OHA’s August 2012 Ka Wai Ola Newspaper but later printed in the October 2012 issue.

`Ano`ai kakou…  As reported in the Pacific Business News (PBN) on July 11, 2012, the Gentry Pacific Design Center is being sold to the OHA.  The sale of the 185,787-square-foot center at 560 N. Nimitz Highway is scheduled to close in August.  The article did not disclose the sales price, but it reported that the building and its three parcels were assessed for about $28.8 million. [See “Office of Hawaiian Affairs to buy Gentry Pacific Design Center,” by Duane Shimogawa in the July 11, 2012 issue of Pacific Business News]

I am dismayed at the Trustees who authorized OHA to make this purchase.  Trustee Oswald Stender first brought the proposal before the board almost a year ago and it was quickly dropped because OHA had to move into the building for it to make financial sense.  None of the other Trustees wanted to move our headquarters there.  I thought the deal was dead, but it came back before the board on May 17, 2012.  The proposal failed again because Trustee Haunani Apoliona cited a conflict of interest because she was on the Board of Directors of the bank being considered to finance the purchase.  OHA’s Board Counsel agreed and recommended that she not vote.

Then, on June 7, 2012, the Board Counsel opined that Trustee Apoliona, miraculously, no longer had a conflict of interest because the Fiscal Committee Chairman took out any references to Trustee Apoliona’s bank within the proposal.  She was allowed to vote and together with Trustees Apo, Machado, Stender, and Waihee, authorized the CEO to make an offer to Gentry Pacific.

Trustees Hulu Lindsey, Robert Lindsey, and I voted against.  Trustee Cataluna abstained.  The four of us had serious concerns about the conditions under which OHA was required to make the purchase.  They include:

(1) The Trustees has less than one week to review the preliminary due diligence and never got to see the final due diligence report until after the purchase was made.

(2) The Gentry Center is 80-years-old and could have problematic lead paint and asbestos.

(3) There are several areas that need to be made ADA accessible.

(4) The electrical system needs to be updated.

(5) The cost and resulting disruption of relocating OHA to the Gentry Design Center.

(6) The cost of retrofitting the Gentry Design Center as an office building.

Given these unknowns, I personally felt very uncomfortable with the purchase.  During the community meetings regarding OHA’s Kakaako Makai settlement properties, we explained to the community that Kakaako would be a good place for economic development and a permanent home for OHA’s headquarters.

Now OHA is spending a great deal of money to renovate an 80-year-old building instead of using the same amount of money to build a brand new one.  It makes absolutely no sense.

Even though the purchase seems to be a done deal, at least four Trustees continue to have serious concerns about how the building was purchased.  I personally believe that purchasing the Gentry Design Center was not a fiscally prudent investment under trust law.

Building a consensus with Board members eliminates mistrust

By: OHA Trustee Rowena Akana

Source: Ka Wai Ola o OHA, December 2004

‘Ano’ai kakou… OHA’s spending policy was recently changed and now all of the Ceded Land revenues we get from the state will go straight into our operating budget. In other words, instead of depositing our income into a savings account, we’ll be putting it straight into our checking account to spend. OHA’s budget chairman wanted to find a way to get OHA to spend more money, so he called a committee meeting on August 18, 2004 and had high-powered experts do a presentation to the Board. These experts argued that the OHA’s spending policy favored future beneficiaries over current beneficiaries by allowing Ceded Land revenues to grow in the Trust. They explained that we were unfairly saving the money for future beneficiaries and not spending enough on today’s beneficiaries.

The presentation worked and on September 15, 2004, the Board passed a new spending policy. Now the $9,446,922 in Ceded Land revenues OHA will get from the state in 2005 will be spent and not saved. Theoretically, OHA should now be able to fund many new programs and help many more beneficiaries with that money.

Unfortunately, not all of the money is going directly to our beneficiaries. It appears leadership will use some of the $9.45 million to cover massive budget short-falls, which mostly included lawyers’ fees and costs relating to our lobbyist for the federal recognition campaign.

As you can imagine, the Trustees had many questions about what exactly the $9.45 million was going to be spent on. These questions finally forced the budget chair to hold a workshop on October 12th & 13th. Even after the two-day workshop, not all of the Trustees were convinced that the $9.45 million was being spent for its intended purpose – helping our beneficiaries. Despite our concerns, the revised Budget finally passed with the minimum required six-votes on November 1, 2004.

Budget workshops should be made mandatory to avoid problems like this in the future. Past budget committee chairs always held workshops before bringing a new budget to the Board. Workshops would give Trustees the time needed to have their questions answered in detail before they had to vote in committee. Right now, all of OHA’s committee chairs distribute materials for their meetings just a few days in advance. This hardly gives Trustees enough time to meet with administrative staff and ask questions, much less receive the answers we need to make prudent decisions.

The current regime could have shown true leadership if they had spent the time necessary to justify their proposal to spend the $9.45 million instead of hiring an attorney and high powered presenters to make their case and rush it through for a vote. Building a consensus with Board members eliminates mistrust and in the end, everyone is more comfortable with the decision they made, decisions based on current information and not hype artists.

I pray that the New Year will bring constructive and meaningful change, despite the fact that the Board remains unchanged after the November election. It is my hope that we will no longer need to engage in political gymnastics to get things done. We shouldn’t have to duel with leadership in order to make sure we are working in the best interest of our beneficiaries.

If leadership can work towards building a consensus and abandons its “win-at-all-cost” mentality, I feel that a more positive and productive Board will emerge. Perhaps my sentiments can best be summed up by St. Paul, who in a letter to Timothy wrote:

“We know the law is good if one uses it lawfully, realizing the fact that law is not made for a righteous man, but those who are lawless, the ungodly, the immoral, liars… and whatever else that is contrary to sound teaching.”
– Timothy, 1st Verse

Have a happy and safe holidays and God bless!