Ka Wai Ola - Office of Hawaiian Affairs, Volume 10, Number 11, 1 Nowemapa 1999 — TRUSTEE To save Pauahi's will [ARTICLE+ILLUSTRATION]

TRUSTEE To save Pauahi's will

N THE PAST, I have occasionally used my eolumn to share the views of constituents on issues of interest to us Hawaiians. The following is by Miehael Crozier, former state senator, and Palani Vaughan, a 1962 Kamehameha graduate: Pauahi's will is being broken. She established a perpetual trust that holds Native Hawaiian lands, and she structured a system of checks and balances. She had five frnctpp<;/f~,RO*; u/hn

would debate and argue eaeh issue. Her will is very clear: she wanted five trustees. She gave her personal wealth to a uniquely Hawaiian structure, Kamehameha Schools Bishop Estate (KSBE). Pauahi did not ask for a voluntary board of trustees. She did not ask for part-time trustees. She wanted full-time trustees who would receive commissions set by law. What right do we have to criticize, object or change Pauahi's wishes? Pauahi's will is a private document. Her estate is not a public entity. The courts, the IRS and the alumni have no right to break her will. Today they are attempting to break it and put in its plaee, a

"Westemized," single-CEO stmcture with a voluntary, part-time board. While this is acceptable for charities in the United States, it is not appropriate for KSBE. To "Westernize" KSBE is to break Pauahi's will and destroy this uniquely Hawaiian land tmst. The breaking of Pauahi's will under the disguise of "modernizing" is wrong. But the attack does not stop there. The interim trustees, Judge Chang, Mr. Roth, the Nā Pua group, Beadie Dawson and Oswald Stender have all remained quiet

about a provision in the settlement agreement with the IRS that will do to KSBE what the breaking of Lunalilo's will did to his estate. It will force the sale of all KSBE lands. Basically the IRS asked for, and the temporary tmstees agreed to, a guaranteed yearly pay-out of ineome from the endowment to the operations of the estate. While this sounds good, it will pvpntna11v 1 paH tn thp

forced to sale all of estate īand. Again, this is a breaking of Pauahi's will. The Hawaiian community is not being told that the guaranteed pay-out is based on the asset value of the estate. As the value increases, the pay-out increases. If the ineome does not keep up with inflation, whieh is customary in real estate, especially in Hawai'i, then the asset must be sold. Over time all of KSBE lands, hke Lunahlo's estate, will be sold. By agreeing to the guaranteed payout, the temporary tmstees have obligated the estate to a yearly appraisal cost of $10 to $15 million. As KSBE converts to a CEO structure with a voluntary board, the lands will be sold to save the yearly cost of the appraisals. It is only a question of time. The Hawauan community must ask why these changes are being rushed. Why isn't there an educational process so the Hawaiian community ean understand what is happening? Why are the supporters of change, who are breaking the will under the guise of "modernization," not pointing out the dangers? Why is the press not reporting these important issues? We would like to ask all Hawai'i residents and, in particular, the Hawaiian community, to eall the courts and KSBE and ask that the process be delayed. Here are the numbers: • Judge Chang 539-4006 • KSBE 523-6200 • Justice Klein 539-4725 • Justice Levinson 539-4735 • Justice Nakayama 539-4720 • Justice Ramil 539-4715 • Chief Justice Moon 539-4700 • Colbert Matsumoto 523-2999 Please eall Nā Kia'i at 668-7024 for a copy of our petition in support of Pauahi's will. ■

"T o 'Westernize' KSBE is to break Pauahi's will and destroy this uniquely Hawaiian land trust." - Miehael Crozier and Palani Vaughan

[?]

»TyT*Tr«Mi WmSmSSSSSSsĒĒm