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Friday, December 12, 2025

December 12, 2025 News Read
By Andrew Walden @ 5:33 PM :: 285 Views

Sen Ernst Calls for Halt and Full Audit of 8a Program

Feds Order All 8a Participants to Provide Financial Records

Undercover Video Exposes 8a Contracting Scam

Setting Stage for Legislative Session: DBEDT Forecasts Economic Growth of 1.5 Percent in 2026

UHERO Forecast for the State of Hawaiʻi: Mild recession and weak recovery in 2026

Trump DOJ Sues Hawaii in Latest Attempt to Seize Voter Data

Honolulu Charter Amendment: Require 'Fiscal Notes' for Council Bills

Hawaii ‘certificate of need’ laws have ‘chilling effect’ on healthcare access

Hawaii Unemployment Drops to 2.5%

State Governments Parlay Sports Betting Into Tax Windfall

Fraud Magnet: Top Senator Takes Aim at Hawaiian 8a Corporations

CB: … This week Sen. Joni Ernst, chair of the Senate Small Business Committee, sent a letter to Defense Secretary Pete Hegseth calling contracts awarded through the Small Business Administration’s 8(a) program a “fraud magnet.”

She specifically cited Dawson, whose offices in downtown Honolulu were raided by federal agents in 2023 as part of an embezzlement probe. Ernst was particularly worried that Dawson’s companies continued to receive defense contracts while under investigation, including a $3.4 million award from the Navy to one of his firms, Dawson MCG, just days after federal agents entered his offices to confiscate employee cellphones and computers. Civil Beat and ProPublica published an in-depth article on Wednesday about the allegations against Dawson and the SBA’s actions, and Civil Beat earlier reported on the Department of Justice’s investigation into him.

“I am troubled by a company under active federal investigation continuing to receive high-dollar, no-bid contracts from the Pentagon, despite federal actions indicating major concerns regarding the firm’s ‘good character,’ which is a required eligibility criterion for 8(a) participants,” wrote Ernst, who represents Iowa.

Ernst cited Civil Beat’s reporting about the DOJ accusing Dawson and other executives of abusing the 8(a) program by using shell companies, direct company transfers and “hollow invoices” to line their own pockets, including by purchasing luxury homes in Hawaii and Florida. SBA records obtained by Civil Beat and ProPublica show he was also spending lavishly on private jets and Porsches and pumping millions into his favorite hobby, polo.

Prosecutors said in court documents that, between 2015 and 2021, the total amount of money diverted into one of Dawson’s shell companies was $17 million, nearly double what was sent to Dawson’s nonprofit Hawaiian Native Corp. for the benefit of Native Hawaiians.

Ernst called on Hegseth to “examine for potential fraud” the Dawson MCG contract and other 8(a) awards to the company. She said she wanted the Pentagon’s review to also include 8(a) contracts awarded to the Hawaiian Native Corp.’s other subsidiaries, which operate under the name DAWSON….

Ernst sent similar letters to 21 other federal agencies, each one including an example of an 8(a) contract that the senator found problematic.

In her letter to Transportation Secretary Sean Duffy, she called out Echelon Services LLC, a firm owned by the Hawaii Pacific Foundation, which like the Hawaiian Native Corp., is a Native Hawaiian organization that under SBA rules is required to use company profits to support Native Hawaiians.

Ernst accused the foundation of having two different firms performing the same type of work for the government while participating in the 8(a) program, something she said is a potential violation of SBA rules.

Jeanine DeFries, president and CEO of the Hawaii Pacific Foundation, ~~refuted~~ (responded to) Ernst’s allegations, saying that SBA rules allow those companies to do the same work as long as they are part of a joint venture.

“We can also confirm,” DeFries said, “that we were not contacted by the senator’s or the committee’s offices prior to receiving the letter.”….

BACKGROUND: Sen Ernst Calls for Halt and Full Audit of 8a Program

read … ‘Fraud Magnet’? Top Senator Wants To Halt SBA Contracts, Citing Hawaiʻi Case - Honolulu Civil Beat

NDAA: Funding bill urges Army to negotiate land leases

SA: … The latest version of Congress’s annual defense spending bill includes several provisions for Hawaii and the Pacific, and one major change covering land lease negotiations in the state….

In a statement on the bill’s passage, U.S. Rep. Jill Tokuda, who sits on the House Armed Services Committee, said this year’s NDAA “includes important provisions for Hawai‘i, military families, and the nation as a whole.” Most importantly, it does not provide (the Pentagon) with any authority to condemn state land, despite recent threats by the U.S. Army.” …

But since Army Secretary Dan Driscoll said this summer he hoped to come to an agreement before the 2029 deadline, the office of Gov. Josh Green told media on several occasions that Army officials suggested that they were exploring the possibility of using eminent domain to seize lands they want for training, rather than negotiate with the state and the Board of Land and Natural Resources.

The Senate’s version of the NDAA contained a provision that would temporarily authorize the military to acquire mission-critical military training lands that are currently leased by its various branches in the islands, but the House version excluded it….

In an explanatory document released by a bipartisan conference committee of lawmakers resolving the differences between the versions, they wrote that “we are concerned that the Army may pursue condemnation in 2025 prior to the 2029 land lease deadline in the vicinity of the PTA before it has fully expended the opportunity for negotiation or achieved a coordinated compensation package within the various agencies of the executive branch.”

“We note that the Army does not have the authority to acquire such lands and that attempting to do so would be contrary to congressional intent,” they continued. “We therefore encourage the Army to fully develop and communicate its plans for PTA to all stakeholders prior to seeking additional legislative authorities.”

The committee also said that it hoped the Navy and Air Force would “work with all concerned parties to seek an equitable solution prior to their expiring land leases,” and that “we encourage the Army to continue working with the State of Hawaii and the Committees on Armed Services of the Senate and the House of Representatives to ensure an appropriate legislative authority aligns with the value of land in Hawaii and meets the training needs of all the Services.”

The bill also includes language establishing a new authority to provide funding for explosive ordnance disposal through intergovernmental support agreements, allowing state and local governments in Hawaii and across the country to play a greater role in removing unexploded bombs from lands formerly used by the military.

In terms of funding, NDAA includes a series of provisions and millions of dollars in support of military infrastructure and construction across Hawaii.

A major emphasis is Pearl Harbor Naval Shipyard, Hawaii’s largest industrial employer. The bill authorizes a further $493 million in the continued Dry Dock 5, which is the single most expensive construction project in the U.S. Navy’s history. It’s expected to cost at least $3.4 billion when it’s completed in 2028, not including upkeep, maintenance and operations costs….

Another provision directs the Navy, in coordination with the Hawaii-based U.S. Indo-Pacific Command, to assess the capacity of each U.S. public and private shipyard, and each foreign shipyard in allied countries or those regarded to be partners, to support battle damage repair in the event of an armed conflict in the Pacific….

read … Funding bill urges Army to negotiate land leases | Honolulu Star-Advertiser

Will 17 Legislators Force Discussion of bribery scandal?

HNN: … The Hawaii Good Government Caucus (HGGC) met with community stakeholders in preparation for the start of the 2026 session.

Retired federal public defender Alexander Silvert briefed HGGC on his Change.org petition, which called for legislative hearings and plans to file the petition on Dec. 21.

“If they try to kill it, leadership tries to kill it, which I expect them to do ... there be a debate,” Silvert said. “There have to be 17 (representatives) and 17 senators to have a debate and revive it.”

State House Speaker Nadine Nakamura said representatives are not taking action in the scandal yet ….

read … Hawaii Good Government Caucus meets to discuss petition over bribery scandal

HART: Demands for payment “false or fraudulent”

CB: … The HART counterclaim accuses Hitachi of breach of contract and violations of Hawaiʻi’s False Claims Act, which allows for triple damages when claims against a county are based on “false or fraudulent” demands for payment.

Hitachi sued HART last month seeking more than $320 million in compensation for construction delays on the rail project, which is currently running more than a decade behind schedule. The Hitachi lawsuit blames project delays on mismanagement by HART.

HART alleges in its counterclaim filed Wednesday that it is entitled to monetary damages for delays and errors caused by Hitachi….

SA: HART files counterclaim against Hitachi’s $320M lawsuit | Honolulu Star-Advertiser

HNN: Honolulu rail authority countersues Skyline contractor for millions in damages

read … The Fight Between Honolulu Rail And A Contractor Gets Uglier - Honolulu Civil Beat

Hawaii's 2026 minimum wage increase could raise prices

KHON: … Economists said the minimum wage hike from $14 to $16 an hour affects a good chunk of Hawaii’s labor force.

“And Hawaii, there’s going to be about 12% of workers who are going to be affected in the islands by this increase in the minimum wage,” said Dr. Gerard Dericks, Hawaii Pacific University Center for Entrepreneurship and Economic Education director. “That will be food service, retailing, hospitality, which represent a large share of workers in Hawaii.”…

“It’s going to be, with our two Ruby Tuesday restaurants, about $153,000 for 2026 versus 2025.”…

read … Hawaii's 2026 minimum wage increase could raise prices

Usual Suspects Attempt to Block Reopening of Lahaina Harbor

HNN: … “During the regular hours is the most frustrating thing for us is we get tourists coming in town and they don’t know where to go. So they’re peeing all over the place,” Kapu said….

The concern is not new. As soon as limited access for residents and workers was opened, tourists were offending the community by gawking at the destruction….

(CLUE: Based on these concerns, when would it be OK to reopen anything in Lahaina?)

Tour captain David Jung will be offering whale watch tours from a 70-foot catamaran starting Monday. He says the tours will not add many people into the area but will add jobs.

“I am just so happy that our mayor and our governor is allowing us to get back to work,” Jung said…

read … Lahaina harbor and roads reopening cause trespassing concern

Secretary of Homeland Security under fire for deported Hawaii veteran in hearing

KITV: … U.S. Secretary of Homeland Security Kristi Noem testified that no veterans are being deported.

Rhode Island Rep. Seth Magaziner presented a different reality by having Sae Joon Park, a U.S. Army Purple Heart veteran and longtime Hawaii resident, ready on a video call. Magaziner acknowledged Park’s past struggles with drug abuse, linking it to PTSD, which he said negatively impacted only himself….

HB: Noem Vows to Review Case of Deported Hawai‘i Purple Heart Veteran - Hawaii Business Magazine

read … Secretary of Homeland Security under fire for deported Hawaii veteran in hearing | Local | kitv.com

Nearly Half Of DOE's New Teacher Hires Are Not Licensed To Teach

CB: … The Department of Education is hiring fewer teachers and seeing an uptick in unlicensed educators in its schools, according to a recent employment report for the 2024-25 academic year.

Last year, roughly 48% of newly hired Hawaiʻi educators did not have a teacher’s license, a 20% increase from the 2020-21 academic year. The numbers include those who have completed an educator preparation program but have not yet earned a state teaching license.

The number of unlicensed educators, also known as emergency hires, has steadily increased since the pandemic, partly due to the recent increase in pay for these workers. The state also has programs in place to help emergency hires earn their license while teaching….

read … Nearly Half Of DOE's New Teacher Hires Are Not Licensed To Teach - Honolulu Civil Beat

Junking Electric Vehicles: Maui Leads the Way

CB: … The Maui Emergency Management Agency recently invited representatives from various local and state fire, health, waste and emergency management departments in Hawaiʻi to observe and ask questions as county workers carefully removed roughly 13 tons of electric vehicle batteries from an area along Honoapi‘ilani Highway in Ukumehame, MEMA Administrator Amos Lonokailua-Hewett said.

It was the first time the Maui method was carried out as part of a non-disaster operation and overseen by federal and state partners, he said, and it could be a model for future hazard mitigation efforts related to the growing risks posed by high-voltage electric and hybrid vehicle batteries across the country and around the world….

Developed by EPA in coordination with local and state partners, the method removes any remaining power still stored inside the batteries and neutralizes the fire hazard through by soaking them in a brine solution for about three days, then crushing them into smaller pieces that can be safely transported to a disposal facility….

read … ‘The Maui Method:’ A New Fix For A Major Fire Hazard In Hawaiʻi - Honolulu Civil Beat

Man charged with assaulting Moanalua High official

SA: … In a petition for a protective order filed Dec. 8, the Moanalua official wrote that at about 9:50 p.m. she was performing her duties and escorting the game officials to their cars.

“(Noga)’s primary intent was to confront the officials regarding their performance. The assault occurred immediately after (Noga) said ‘watch out for my child’ after which he struck me in the face,” wrote the victim, noting that Noga is more than twice her size. “It was (Noga)’s aggressive action and assault on me that caused me to inadvertently knock over their young child as I did not see the child and I posed no threat to the child.”

After Noga allegedly punched the woman in her face she fell to the ground. Noga told her she deserved it and “strongly stands by” assaulting her, according to the petition. Because Noga believes his “unprovoked, hostile actions were justified and that I deserved the injuries I sustained, I am in continuous and great fear that he will harass and assault me again.”

According to the Hawaii Criminal Justice Data Center, Noga has prior convictions for harassment, criminal property damage and disorderly conduct.

The protective order also names Noga’s wife, who was not arrested for a crime.

Noga and his wife allegedly “aggressively confronted the officials after the game” prompting the Moanalua official to ask them to stop.

Noga’s wife allegedly “mocked and ridiculed” the associate athletic director and told her “who the f—- do you think you are? Get the f—- out of here.” After Noga knocked her to the ground, his wife allegedly stood over her and yelled that she got what she deserved, according to the petition. “I told you get the f—- out of here but you didn’t listen,” Noga’s wife allegedly told the Moanalua administrator.

A hearing on the petition for the temporary restraining order against the Nogas is set for Thursday….

read … Man charged with assaulting Moanalua High official | Honolulu Star-Advertiser

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