Tag: State Procurement Office

Understanding OHA Politics: 5 Trustees + 1 CEO = Total Control

`Ano`ai kakou…  Due to the recent state audit, some have been calling for the ouster of all current Trustees.  Before people “throw the baby out with the bath water,” I think it’s important to understand how the politics at OHA allows six individuals to have complete control over OHA.  It’s a simple formula:

FIVE TRUSTEES

Five Trustees choose the Board Chair, which gives them an enormous edge over the remaining four Trustees.

The Board Chair serves as OHA’s Chief Procurement Officer and has complete control of OHA’s checkbook.  However, she has handed over this responsibility to the CEO so he can cut checks on a daily basis.  Some of the Trustees have questioned the CEO’s spending but the Board Chair is still OHA’s Chief Procurement Officer and if she is unwilling to investigate it, then nothing happens.

Another problem is legal representation for the “whole” Board as opposed to a few Trustees.

+ ONE CEO

Only Five Trustees are needed to hire the CEO, so he can ignore the remaining four if he chooses.  And that is exactly what he has done!  He has even gone so far as to tell his department heads to not meet with Trustees unless they have his permission.

The CEO has far more power over OHA than any Trustees or even the Board Chair.  Only the CEO (not the Trustees) has the power to hire and fire any OHA employee.

The CEO has complete control of OHA’s legal department and OHA’s Corp. Counsel answers directly to him.  So good luck asking the Corp. Counsel for help if you have a problem with the CEO.  Also, all of OHA’s legal department opinions must go through the CEO before the Trustees can see them.

= COMPLETE CONTROL

I’ve heard people argue that the Trustees should have known the CEO was misspending OHA Trust funds and that all Trustees share the blame for his misconduct.  Normally, I would agree with that statement.  However, when Five Trustees and the CEO form a political partnership, it is nearly impossible for the remaining Four Trustees to discover the truth.

As most people know, I have even gone so far as to sue the Board of Trustees to get some transparency.  That is the only option that minority Trustees have – go to court against the Board to allow information to flow to all Trustees and the public.

Aloha Ke Akua.

State Procurement Office investigates OHA over lucrative, non-bid contract

`Ano`ai kakou…  On May 8, 2017, Hawaii News Now reported that “a criminal probe is now underway on a lucrative, non-bid contract issued by the Office of Hawaiian Affairs.”  They also reported that “the state Attorney General’s office has subpoenaed records relating to an OHA’s contract with [a] Hawaiian scholar…  Sources said the subpoena was issued to the State Procurement Office, which recently found that OHA improperly awarded the contract without competitive bidding.”

In early May, OHA received a copy of a letter from Sara Allen, the Administrator of the State Procurement Office (SPO), to Mililani Trask regarding OHA’s Contract No. 2879 with Kuauli ꞌĀina-Based Insights LLC.  It stated that a certain division of our staff had violated the State Procurement laws.

This news was not a revelation to me, as I had been informing the Trustees that this behavior had been going on for a very long time.  As the former Chair, I wanted this behavior stopped.

It was the main reason for my rescinding the procurement duties from the OHA CEO, which caused a furor by some management staff and some of the public.  However, the public was not aware of OHA’s internal problems and did not understand my reasoning for this removal of this power.  Needless to say, my detractors used this to say the Board was dysfunctional under my two-month watch and it was a reason to elect a new Chair.  As a result, the “old guard” was put back in power.

So here we go again, faced with the same problems, only in worse shape now because it isn’t just the State Procurement Office who is looking into OHA.  We didn’t do well at the legislature last year or this year, and our beneficiaries question the ability of some Trustees to manage our Trust assets.

Can OHA be fixed?  Yes, but it will take political will on the part of some Trustees to do what is necessary to make this organization into one that our beneficiaries can be proud of and our employees happy to work for.  Aloha Ke Akua.