The Office of Hawaiian Affairs is a slush fund—Where is the money going?

The Office of Hawaiian Affairs is a slush fund—Where is the money going?

by Andrew Walden 

The Office of Hawaiian Affairs (OHA) is a slush fund.  

OHA obtains an annual state appropriation fixed by the legislature.  Customarily, the appropriation estimates a 20% cut of ‘ceded lands’ revenues.  Efforts by OHA to expand ceded lands revenues serve to steer Hawaii towards greater and greater reliance on the tourism industry by repressing alternatives.  Given the predominance of entertainers on the OHA Board of Trustees, this should not be a surprise.

In spite of the relatively manini amounts involved, the cost of acquisition is very high—for instance:

OHA gets a 20% cut of state harbors revenues, thus increasing consumer prices for all imported goods.  OHA’s take for your misery?  A paltry $77M.

OHA supports litigation and legislation designed to restrict the availability of developable land, thus increasing the cost of housing.     

Housing and the high cost of goods are key factors driving the exodus of locals from Hawaii.

Ironically, OHA is repeating the error of Hawaiian Kingdom royals who exploited their own people and relied on an alliance with businessmen.

Looking forwards, OHA seeks expanded revenues from telescope leases on Mauna Kea and military leases statewide.  Anti-telescope and anti-military protesters are controlled by OHA insiders who see the upcoming master lease renewals as an opportunity to get more money for themselves. 

The result:

• America’s defense posture is compromised.
• Perfectly good telescopes are being dismantled and shipped off to Chile where science is appreciated.  
• Military and scientific employment opportunities are lost and Hawaii becomes that much more reliant on tourism. 

In other words, the cost of acquisition is extreme.  But since OHA isn’t paying, OHA doesn’t care.

That’s the income side of the transaction: But what about the expense side?  Where is this ceded-lands money going?

Hawai’i Free Press has obtained a copy of the Fiscal Year 2022-23 Office of Hawaiian Affairs check register in response to an open records request.

The register shows 1,957 checks totaling $35,665,490.47--a spending increase of $2,894,471.42 or 8.8% from last year.

View the check register here:

• XCL: 2022-23 Check Register
• PDF: 2022-23 Check Register

Which insiders are enjoying the cash flow? 

$12.7M goes to these big winners:

1. Kanu o ka Aina $3.1M
2. Kuilei Consulting $2.7M
3. DHHL $2.3M  (DHHL was promised $3M)
4. NHLC $1.2M
5. Resources Connection LLC $1.2M
6. Alu Like $670K
7. Marsh $444K
8. Oahu Publications, Inc (Publishes Star-Adv) $220K
9. Klein LLLC $211K
10. Forest Solutions, LLC $211K
11. Solutions Pacific $199K
12. Denton’s $177K

Kakaako Goes Out With a Bang

Kuilei Consulting, Inc -- Karl Veto Baker raked in $2,751,674.90, a 229% increase from the $1,199,275.57 Kuilei took for 2021-22, to pay insiders for promoting OHA’s Kakaako Makai development schemes. 

READ: “Dead Bodies, Convicted Felons and Kakaako Makai: Meet the new Gang at OHA.”   

Incorporated April 2, 2021, Kuilei has been raking in OHA money since January 6, 2022.   But this may be nearing the end.  In the 2024 legislative session, OHA did no Kakaako Makai lobbying.   Instead of buttonholing legislators, Veto Baker began the year by racking up $1,000 per day fines from the DPP for promoting a luau at his Pauoa Valley home.

CB Dec, 2022: “Budget documents from last year show OHA has either spent or committed $4 million for Kakaako Makai operations.”

DO THE MATH: $1,199,275.57 + $2,751,674.90 = $3,950,950.47  What a coincidence!

Here is the breakdown:

$3.9M -- Lobbyists, PR, Kakaako Makai

• $2,751,674.90 Kuilei Consulting, Inc
• $167,367.01 Kalaimoku Group / John Aeto (advertising)       
• $444,505.36 paid to Broken Trust DC Lobbyists Marsh USA Inc.
• $199,123.67 Solutions Pacific (Ray Soon)
• $220,493.87 Oahu Publications, Inc (Publishes Star-Adv)
• $78,000.00  Hawaii Public Policy Advocates, LLC
• $14,100.00 Strategies 360. Inc
• $13,852.99 Strategic Communication Solutions, LLC (Nathan Hokama)
• $12,487.50 Digital Moku

Robin Danner Etal -- $81,035.53 (down each year from $262K, $576K, $977K)

• CNHA  -- $54,814.38 in one Sept, 2022 payment -- READ: Dirty OHA Contract is Model for CNHA Takeover of Tourism Marketing
• Homestead Community Development Corp $25,521.15
• Edith Kanakaole Foundation -- $500
• SCHHA -- $200

$2.4M -- Consultants, Computer Software, Engineering, Training and Marketing

Spending doubled from last year – the difference all goes to Resources Connection LLC 

• $14,037.95  Akamine, Oyadomari & Kosaki CPAs Inc
• $11,497.38  Aurora Design and Consulting LLC
• $20,996.40 CHERRYROAD TECHNOLOGIES INC. (systems integration and consulting services)
• $46,154.45 DATAHOUSE (consulting)
• $56,000.00 DL CONSULTING LIMITED (No bid sole-source contract: LINK)
• $211,453.57 paid to Forest Solutions, LLC -- (owned by Mrs. Michael Saalfeld) See: “Secrecy surrounds Parker Ranch's sale of 3,509 acres to biofuel pioneer” and “Parker Ranch files lawsuit against German industrialist’s 3,500-acre purchase.”
• $7,461.30 FOUNDANT TECHNOLOGIES, INC.
• $115,000.00  N&K CPAs Inc
• $50,610.00 Ohanasoft, LLC (Oracle Consultant Joon Kwok)
• $92,694.62 Oracle America, Inc
• $178,350.00 Plante & Moran Auditor
• $9,300.00 Politico LLC
• $1,207,050.43 Resources Connection LLC  (Tammi Watson Honolulu Consultant)
• $181,621.46 RUNNING LOGISTICS LLC
• $58,861.23  SHI INTERNATIONAL CORP (Software House Int’l)      
• $13,703.13 Supporting the Language of Kauai, Inc (For OHA Insider Cash Bonanza Comes with Poi Mill)      
• $11,931.73 The SystemCenter, Inc
• $8,621.25 THOUGHTFOCUS, Inc
• $7,098.24 WPEngine, Inc
• $54,925.28 Xerox Corp
• $45,077.18 Keith Yabusaki
• $64,412.33 ZR Systems Group, LLC (computer consultants)

$1.7M to Lawyers (NHLC and Klein big winners)

• $212,774.67 to Klein Law Group LLLC (see: OHA Sacrifices $3.2M to Hide Lawyer’s Conflict of Interest?)
• $71,217.28 to ES&A, INC which, among other things, in the past defended the OHA LLCs refusal to comply with Hawaii’s open records laws. See: Lawsuit: OHA-Owned Corporations Must Comply With Open Records Laws and OHA’s Hidden LLCs: Why Plead Guilty to Stealing $14M?
• $61,597.28  to Sherry Broder ESQ
• $9,404.92 Ogawa, Lau, Nakamura & Jew
• $55,806.56 paid to McCorriston Miller.
• $54,922.82 Law Offices Of Rodney Bridgers, LLLC
• $177,365.11 paid to Dentons (formerly Alston Hunt).
• $1,158,800.00 paid to Native Hawaiian Legal Corp.

Over $390K to Banks and Investment Advisors:

• $382,181.24 paid to Bank of America.
• $0 paid to Bank of Hawaii—was $1.7M last year.  (Apparently the mortgage on OHA HQ is finally paid off.  See: Surprise: Entire OHA Trust Fund Frozen by Gentry Pacific Boondoggle)
• $8,107.14 paid to First Hawaiian.
• $0  Orrick, Harrington (investment consultants was $50K last year—who is advising OHA on stock market?) 
• $0  SEGAL ADVISORS, INC. (investment consultants was $70K last year-- who is advising OHA on stock market?)

Other Highlights found by searching the register include

• $669,967.08 to Alu Like (back in the money after years in the wilderness)
• $97,853.66  Adult Friends for Youth (Fake gang counselor who was moving multi-pound quantities of meth until he was killed.)
• $100,000.00 to Ho’okako’o Corp (charter schools)
• $2,862,430.89 (up from $493,853.18) paid to Kanu o Ka Aina Learning Ohana and another $220,725.00 (up from $114,125.50) paid to Kanu o Ka Aina PCS.  Outgoing OHA Trustee Bob Lindsey formerly member of Board.  Flashback: “OHA Chair’s Charter School Gets Seven Times More Than All Other Charters Combined”
• $166,281.31 (up from $55,863.50) to Kipuka O Ke Ola (5 Mountains) – Bob Lindsey formerly on Board
• $2,258,587.29 to DHHL (Shortchanged?  OHA in 2009 promised to give DHHL $3M per year for 30 yrs)
• $0 paid to OHA’s Hi’ilei Aloha, LLC.  First year OHAs LLCs don’t get a subsidy.  See: Lawsuit: OHA Uses Corporations to Sidestep Open Meetings Law, Loot Assets, Line Cronies' Pockets
• $496,048.53 paid to University of Hawaii
• $13,308,079.97 paid to Director of Finance and $2,022,275.89 paid to OHA (payroll)
• $28,090.00 to US Department of the Interior

RELATED:

• 2022: OHA Check Register 2022--Insiders Rake in $1.2M for Kakaako Makai Lobbying
• 2022: OHA LLCs Funnel Dollars to COO, Individuals, Lawfirm
• 2022: Auditor Rips 'Never-ending fishing expedition'
• 2021: Legislative Audit of OHA’s Limited Liability Companies Cancelled
• 2021: OHA Check Register: Complete List of Who Gets Paid FY2020-21
• 2020: OHA Check Register: First Year After Crabbe--Insiders Still Rake in Millions
• 2019: How OHA Lawyers Hid $200K Procurement Violation
• 2019: After Years of Illegality, OHA LLCs Hand over Check Registers--Trustees Repeal Nepotism Clause
• 2019: OHA LLCs Agree to Provide Check Register
• 2019: OHA Refuses to Cooperate with Auditor--May Lose Legislative Appropriation to Hide LLC Secrets
• 2018: Crooks and Cronies: Who's Cashing in on the 2017-18 OHA Check Register
• 2015: Lawsuit: OHA Uses Corporations to Sidestep Open Meetings Law, Loot Assets, Line Cronies' Pockets.
• 2015: After Two Months, OHA Coughs up Check Register
• OHA Procurement: https://www.oha.org/solicitations