Wednesday, July 08, 2020
Hawai'i Free Press

Current Articles | Archives

Sunday, December 29, 2019
Don't Sweep OHA Audit Under the Rug
By Keli'i Akina PhD @ 2:32 AM :: 1573 Views :: Ethics, OHA

Don't Sweep OHA Audit Under the Rug!

by OHA Trustee Keli'i Akina, PhD, Ka Wai Ola, January, 2020

Some say it's not an "audit," but a "report."  Others say it doesn't "show fraud," but "indicators of potential fraud."  However people talk about it, you owe it to yourself to look at what the latest audit of OHA actually says.

SHOCKING FINDINGS

The firm CliftonLarsonAllen (CLA) examined 2% of all contracts and disbursements OHA and its LLCs entered into from July 2012 to June 2016. They Red-Flagged 17% of them for ''potentially fraudulent, wasteful or abusive expenditures."

Here are some of their findings:

• The Akamai Foundation, on behalf of Na'i Aupuni, received a $2.6 million grant but OHA was unable to give the CLA auditors any supporting invoices, receipts or billings to demonstrate what costs were actually incurred by the grant awardee.

•A $1.6 million contract was awarded to WCIT to produce the Conceptual Master Plan for OHA's Kaka'ako Makai properties but according to CLA, the purpose of this contract was not accomplished.

• A $250,000 contract was awarded to Kuauli 'Aina Based Insights LLC to "examine the original source deeds of former Hawaiian Kingdom Government and Crown Lands sold" from 1845-1859.  The contract bypassed the required procurement process.

• OHA gave a $200,000 grant to 'Aha Kane while the OHA CEO at that time, who founded 'Aha Kane, was serving as an Advisory Chair to the organization.

• Reed Smith LLP received a $200,000 professional services contract to provide legal advice regarding Native Hawaiian self-governance and Hawaiian language immersion education. The main provider of the services contracted for was an OHA employee whose employment with OHA ended shortly before the contract was awarded.

• Absolute Plus received $185,000 to provide reports to the Board on each Trust Fund Advisor and the entire trust fund, yet OHA could not provide CLA with the reports, or any evidence that the required work was performed.

• OHA gave $150,000 to ABW Holdings, LLC for a lease guaranty OHA had signed on behalf of Kauhale, LLC when it defaulted on its commercial lease at Waikiki Beachwalk.

NOT A CLEAN BILL OF HEALTH

While the CLA report "did not identify actual instances of fraud, waste and abuse," the truth is that CLA cannot, and was not asked to make, a formal determination of fraud since it is not a law enforcement entity. CLA did what they were hired to do, which is point out indicators of potential fraud. CLA stated, "Because our engagement was limited to-the matters described in the contract, fraud and/or financial irregularities may exist within the organization that we may not have identified during the performance of our procedures."

Clearly, the auditors did not give OHA "a clean bill of health."

The Honolulu Star-Advertiser editors put it this way: "Audit should set off alarms at OHA." And Hawai'i News Now reported: "Auditors find a mess when they look into Office of Hawaiian Affairs spending."

SERIOUS QUESTIONS

There are serious questions which must now be answered:

• Where are the contract deliverables that the audit could not find?

• Where is the large amount of documentation that OHA could not produce for the auditors?

• Will OHA trustees look into cases with serious indicators of potential waste, fraud and abuse?

• Will the trustees make appropriate referrals to government agencies and law enforcement bodies?

The worst thing OHA could do is downplay the audit and fail to hold responsible parties accountable. Beneficiaries need to insist that OHA trustees follow through and complete the work the audit began.

Let's not sweep the independent audit under the rug. 

UPDATE: State Auditor Suspends OHA Audit Over Refusal to Release Records.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT