Ka Wai Ola - Office of Hawaiian Affairs, Volume 11, Number 2, 1 ʻAukake 1994 — The final Mahele -- it's your Choice [ARTICLE+ILLUSTRATION]

The final Mahele -- it's your Choice

by The Rev. Moses K. Keale, Sr. Trustee, Kaua'i & Ni'ihau On Jan. 27, 1848, His Majesty King Kamehameha III initiated the "Great Mahele," the distribution of land to the chiefs and the Kingdom of Hawai'i. The Mahele changed land ownership in Hawai'i from a feudal system to fee-simple ownership. But the Kuleana Act, whieh opened land ownership to the people, resulted in less than 30,000 acres actually being awarded to the native tenants. Now we stand at the threshold of the new

Mahele\ After 100 years of struggle, hurt, pain, hardship and deprivation, we Hawaiians have given birth to a new energy and new empowerment. Through diligent efforts, we created the Office of Hawaiian Affairs. We challenged the state to follow the law. We fought hard for our entitlement. We demanded our rights! The battle resulted in the state acknowledging its debt and forming a large cash asset base. Today, we hold more than $150 million in trust. Now, when the economy is stmg-

gling and cash assets are scarce, our assets are a target for hungry investors. Is it any wonder that many people want to make deals with this office? These trust assets are intended and required to be used to better the conditions

of the native Hawaiian. What has OHA done with those assets? In October 1991, we fired our assets manager and money manager of 10 years. In that decade, Carl Choy and Cardinha & Co. managed our assets with conservative strategies approved by the board, and never lost any money! In November 1991, led by

Chairman Clayton Hee and Trustee Abraham Aiona. chairman of the budget and finance committee, OHA hired a new investment monitor and new money managers. On Jan. 31, 1992, the same two trustees asked the board to repeal OHA's investment objectives and guidelines and promised that new guidelines were to be put in plaee. Later, the board was asked to approve their recommendation to add six new money managers to our list of money handlers. Between January through March 1994 the portfolio devalued $6 million, in other words a net loss. On June 30, the Chairman and Trustee Aiona onee again asked us to rush into another deal to encumber OHA's assets, to issue $100 million of revenue bonds for a mortgage financing home program. Onee again, the process of reviewing this matter has been circumvented. It has not been

referred to subject committees yet or put forth for public review. You are being shortchanged in your ability to have your views known and we, the trustees, are being coerced to make decisions without complete information.

This nonsense must end! We dragged the Education Foundation through the most rigorous of committee reviews, passed funding for the foundation four times. In the end, trustees DeSoto, Aiona and Hee encouraged trustees to derail the transfer of funds to the foundation, making the whole process a sham! It appears that wherever

the beneficiaries would directly benefit from an action, such action is placed under the closest scrutiny. But where an action results in the encumbrance of assets through consultant contract or other encumbrance to third parties, the process is allowed to be short-tracked and only minimally scrutinized. I predict that if we continue on this path of action, there will be no benefits left for the people for whom these assets were intended. We will have completed the final Mahele. Our lands and our assets will be no more. I will fight this every step of the way even if it means taking legal action in court. I will protect those assets whieh I have fought for more than 14 years to protect. Will you do your part? Editor' s note: new investment guidelines and objectives were approved by majority vote ofthe board Nov. 22. 1993.