Ka Wai Ola - Office of Hawaiian Affairs, Volume 9, Number 6, 1 June 1992 — It is time to unite for the good of all [ARTICLE+ILLUSTRATION]

It is time to unite for the good of all

by Clayton H.W. Hee Chairman, OHA Board of Trustees

Now that the 1992 legislative session is over, and the state budget has been passed with the down payment to OHA of $5 million included as part of an agreed-upon initial settlement of $ 1 12 million, I would like to offer tne following eomments:

The $112 million represents an agreement by the state and OHA, based on expert opinions of auditors for both parties. The state's auditor, Ernst & Young, and OHA's auditor Deloitte & Touche, disagreed on the exact moneys generated on state lands in whieh OHA is owed a 20 percent revenue share, according to state law. lnitially the state said the entire amount due to OHA was $95 million. OHA disagreed. After months of careful analysis of our auditor's findings, the state changed its position and increased its evaluation of the moneys owed from $95 million to $102 million to finally $112 million on 56 separate issues. On another matter, two OHA trustees, Rowena Akana and Moanikeala Akaka, have charged that the negotiations have been eonducted behind closed doors. This is not true. OHA records show that upon every agreement reached by the state on OHA's figures, they (and all other trustees) were afforded the opportunity to comment and vote on the meetings. The minutes of those meetings are public record and availabie to anyone, anytime. The minutes of the OHA Entitlements Committee meeting on April 21, 1992 show the following: 1. Both Akana and Akaka were present at the meeting to express their views. 2. The committee was informed of the $112 million figure the state had agreed to pay OHA for 56 issues. 3. The committee members present were given a rough draft of the state budget "proviso" showing OHA was going to receive a $5 million down payment in 1992. It should be noted that the figure of $112 million represents nothing more than the state's

reviewing OHA's audit and agreeing to those numbers. At no time whatsoever was I or anyone connected to OHA engaged in a "negotiation" over percentages or fair share or "what we believe" should be paid to the Hawaiian people according to our opinions. The $112 million represents a review of "hard numbers" based on "hard data." There was simply nothing to negotiate. The fact of the matter is that any discussion centered on "how auditors reached conclusions," and mueh of that discussion was provided by the auditors themselves. Finally, it has been alleged that i "tried" to oust Trustee Akana behind closed doors. In fact, reorganization of the board was done in the manner in whieh it has always been conducted since OHA's inception in 1980. The trustees themselves expressed a desire for change in an executive session and ratified that change in an open session of the board meeting. As soon as the board learned about the lawsuit filed by Trustee Akana, we offered to reinstate her as vice chair both to promote board harmony and to avoid the high cost of litigation. The board made this offer even before Akana filed her complaint. Akana declined the offer. Judge Soong denied Akana's motion for injunctive relief because there was no case or controversy. Upon reflection, I agree that the OHA board reorganization proceedings should be conducted in open session and not in executive session. The board posted the "vote of no confidence on Vice-Chair Akana" on the next board agenda for its May 14 BOT meeting in Kona. As chairman of the board, I assume responsibility for the error. I should have reviewed Chapter 92 of the Hawai'i Revised Statutes more carefully, and not relied upon my understanding of the manner in whieh past trustees have conducted board reorganizations for the last 10 years. It is widely known that 1 offered to step down at the April board meeting should the majority of trustees feel, as Akana does, that I am not a capable leader. No one voiced agreement with Akana. My offer stands. However, I would not think about fighting to stay on as the chairman, but would step down immediately without forcing a vote by the other trustees. OHA and the Hawaiian people face new ehal-

lenges. We must set aside personal differences and unite for the good of all. Mueh more remains to be accomplished. The $112 million represents only the initial agreement. OHA has yet to enter into discussion about the housing projects built on ceded lands by the Hawai'i Housing Authority and the Housing Finance and Development Corporation. It must still discuss the millions of dollars owed to OHA by the state's reinvesting of those same moneys long owed to OHA, thereby accruing additional interest revenues; as well as moneys owed to OHA by the state Dspartment of Transportation Harbors Division and the state Department of Health. On a personal note, I am gratified that the other trustees have stood by me and have always provided me with the energy to continue the work started in 1980. I am further humbled by the Hawaiian people who have called to express their support, and as importantly, the kupuna who have counseled and inspired me to hamau, ho'omana'o and ho'omau.