Ka Wai Ola - Office of Hawaiian Affairs, Volume 9, Number 4, 1 ʻApelila 1992 — How the OHA trust grows [ARTICLE+ILLUSTRATION]
How the OHA trust grows
by Rev. Moses K. Keale Sr. Trustee, Kaua'i & Ni'ihau
During the course of the 12 years that I have had the honor and pleasure to serve as trustee of the Office of Hawaiian Affairs, there have been many periods of great elation. Building . a brand new agency is
like embarking on an adventurous voyage of discovery not unlike the journey undertaken many hundreds of centuries ago by our Polynesian ancestor. And like that journey it is a journey besieged with difficulties and disappointments, trials and errors. OHA bashing has become an increasingly popular pastime for many, even from our own Hawaiian people. Yet, this is to be expected from a people so beset with obstacles and hurdles to overcome. Frustration is a damaging thing. It causes us to lash out at the people around us. It causes us to condemn those that are trying to help us. We want to hurt because we hurt. And so it is not unusual to see OHA become the target of all the frustration, anger and hurt we hold within ourselves.
Last month the Honolulu Star-Bulletin published an editorial by a Hawaiian whieh said, "What trust has OHA set up from whieh the native Hawaiians properly may say they own any dividends, any mutual funds, any savings gathering interest in the bank? I show you nothing at all." As I reflected on those statements it occurred to me that it is not so mueh that the statement needed correction as that we at OHA are guilty of not keeping our beneficiaries informed about who we are and what we are doing for them. OHA is a trust! That is why we are called trustees. The state constitution says, "There is hereby established the Office of Hawaiian Affairs. The Office of Hawaiian Affairs shall hold title to all the real and personal property . . . held in trust for native Hawaiians and Hawaiians." We had humble beginnings in 1980. Translated freely that means we were underfunded and under-staffed but given a horrendous mandate; uto better the conditions of the native Hawaiians and Hawaiians." Beginning in 1983 OHA created its first investment program designed to invest at least a portion of the funds derived from the ineome of the ceded land leases. We initially invested $1.5 million with Dean Witter Reynolds, ine. Again in 1986 we placed an additional $2.1 million with Dean Witter Reynolds, ine. for a total of $3.6 million. Our records show that over the six-year period from 1984 through 1990 we received $2,750,000 in earnings for this investment, or a time-weighted return of 12.1percent. Of this sum of $6,350,000 we spent only $735,000 to supplement ineome for programs. During the period 1981 through 1990, OHA received approximately $12 million from
the ceded land trust leases. The legislature demanded that we match eaeh dollar they provided to us in general funds to operate our program with a dollar of revenue we received from the ceded land leases. So, over the period of those 10 years we spent $16 million for programs $8 million from general funds and $8 million from special funds) and yet we were still able to set aside $3.6 million for investments in order to build assets toward the future needs of the Hawaiian people. Today that $3.6 million has grown to $6,350,000 plus dollars. And we have a number of programs to show for our efforts.
• We have a fledgling self-help housing program whieh has assisted many Hawaiians attain their goal of building and owning their own homes. • We have a $3 million revolving loan fund that has allowed over 90 Hawaiians to attain their dreams of owning and operating their own businesses. • We have educational and tutorial programs for young Hawaiian students so that they may secure a proper foundation to assure their success in the eeonomie world. • We have actively exerted our influence and guidance in preserving the Hawaiian cultural heritage and practices assuring that Hawai'i will always maintain a vigorous and loving host cuiture. • We have vigorously defended against the erosion of Hawaiian entitlements and rights. We have offered scholarships for higher education and leadership training for our Haweiiian youth in order to insure the continuance of strong Hawaiian leadership throughout this multi-eth-nie society. • We have begun a $10 million Educational Foundation in order to plan for the future of those Hawaiian children yet to be born so that their needs ean be met in the years to eome. • We have guaranteed that our Hawaiian language will live on through our newly forged partnership and lobbying effort with the Board of Education.
• And, of course, no one ean ignore our efforts to obtain Hawaiians' rightful, legal and full share of the entitlements that the law guarantees. Those efforts have brought immediate results. Beginning in 1990 OHA began receiving $10 million per year instead of $1.2 million. Soon, very soon, OHA will settle the issue of back leases due to OHA of over $95 million. And there is more to eome, mueh more. We have money in the bank! We have programs on the books! We have the ability to fight for the rights of the Hawaiian people! We are training leaders everyday! We have helped to preserve our cultural heritage, history, lifestyle and language! All of these accomplishments belong to the Hawaiian people. All these accomplishments are part of the assets of that trust we, the board of trustees and the hard working staff of the Office of Hawaiian Affairs have built for our beneficiary, our Native Hawaiian. No other agency ean offer this to the Hawaiian, because no other agency is empowered by law to act on behalf of the Hawaiian, and only on behalf of the Hawaiian. OHA has no other beneficiary. Remember, the nine trustees serve the Hawaiian people. They are elected by the Hawaiian people to serve the Hawaiian people. So I say to you that you, the Native Hawaiian, own a pieee of this asset held in trust for you.
We here at OHA are going to be here to defend your rights, build your trust assets, administer your programs and tell your story. We will be here for as long as you want us to be, because we have the power of the law to fight for justice for every Hawaiian man, woman and child no matter where they may reside, no matter who they are, no matter what they believe. A i manao kekahi e lilo i pookele i waena o oukou, e pono no e lilo ia i kauwa na oukou. Na ke Akua e malama a e alakai ia kakou apau.