Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 1, 1 January 1996 — Trustee in-fighting a necessary guardian's challenge to ill-used power [ARTICLE+ILLUSTRATION]

Trustee in-fighting a necessary guardian's challenge to ill-used power

by Billie Beamer Trustee-at-large I have been a trustee for one year and only received one December 1994 financial statement, the fmdings of an

external audit. This gross administrative negligence denies trustees the receipt of regular detailed statements to account for every expenditure of your $250 million estate for whieh we are liable. During this same year, we have been without in-house legal staff after the administrative release of Pumehana

Libman. Without legally approved eontracts, some vendors have not been paid for a year. Trustees are court designated guardians to manage an estate's fiscal resources and other assets for the benefit of the heirs until

they ean manage their own inheritance at maturity. The selection of a sovereign preference is the maturation inheritance date for OHA's heirs to assuine control of their estate. OHA was not conceived to

be just another free spending divisive and controlled politieal entity. The vision of these polkieal tyrants is short-sight-ed, they 'iake while the taking is good.' The minority faction is held hostage while fighting for decision-making based on 'merit and priorities.' When there is a fight, you are assured that watchdogs are on hand. You should be eon-

cemed when there is complete harmony and we are all pacified by stuffing our mouths from your eookie jar. The so called dissidents are bent on establishing a protective infrastructure of impeecable credibility to administer the tmst

resources. In this maturational phase we guardians should provide for the basic well-being and education of the heirs. I do not find this moral ethic of guardianship an understanding evidenced anywhere in OHA's deliberations. Fiduciaries must provide eeonomie accountability of expenditures and must regularly assess productive use of the monies. OHA'S POLITICAL MODE appears bent on using the resources to preserve an

extended power base. Friends, intimates, minions and proteges receive the benefits from an unlimited slush of tmst funds. Thirty-two million was expended from trast funds beyond budgeted items called parachutes. Heirs must encourage public challenge. You can't be ostriches, you must know that there is gross negligence in the management of your $250 million.

ineome from state for $ 15-$ 1 8 million No expenditure plan or regceded lands rentals ular reporting to trastees. Cash on hand $25-$28 million No expenditure or savings plan. Trastees receive no reports. Budget from State 3-4 mil Total per year Does not include other lion for non 50% Hawaiians $13-$ 14 million expenditures from Trust Budget from OHA 3-4 mil funds. Trastees receive no lion for 50% Hawaiians accounting or priorities for A supplementary budget expenditures. from OHA Trast funds for 50% Hawaiians Valuation of funds invested $203 million Professional managers subby money managers mit the only regular monthly reports to the trastees. FHB custodian of OHA who knows the No accounting to trastees of funds total??????? commissions paiid, to whom, and interest earned in all accounts. Federal and other monies $11 million for Regular accounting loans to trastees just beginning. Grants and donations $1,312,848 Majority controls. Other trast $32 million '94 No criteria, called parawithdrawals chutes. n ». u , , $10,000 replenished monthcash About $100,000 , ly, no accounting to Trustees, no criteria.

WHAT 1S THE SOLUT!ON? Stop being concerned about maintaining a cosmetic image and the illusory glorification of "Pono." We have asked and asked, but are ignored. Of more importance is, do you want forthright management and accountability? The tight control here at OHA leaves the challengers one alternative to protect and manage this estate, that is through the courts. Sorry, but the infighting will continue until we stop the willful violation of the law and OHA's procedures. Three beneficiaries, Courtney Tagupa, epa, mpa; Walter Kawaiaiea, retired businessman and lohanna Lawrence, public advocate have joined Trastee Keale and I by filing a complaint in Circuit Court to begin to demand accountability. See Trastee Keale's article. If you wish a copy, please eall Roy Ah Nee 594-1899.