OHA trustees face scrutiny over land acquisition failures

During a recent meeting, a representative from the Office of Hawaiian Affairs (OHA) raised significant concerns regarding the findings of the state audit report 2304, released in March 2023. The speaker emphasized the need for OHA trustees to address the highlighted issues before considering new strategies or consultants.

The audit report pointed out that OHA trustees have not been fulfilling their fiduciary duties, particularly concerning the management of Kakaako and other OHA-owned lands. It criticized the lack of a coherent real estate strategy and land acquisition policies, describing the current approach as ad hoc and questioning the prudence of trustee actions.

The representative called attention to the responsibilities of the Resource Management (RM) Committee, which is tasked with recommending policies for managing OHA's investment portfolio and developing guidelines for land acquisitions and management. Alarmingly, the audit revealed that these policies are outdated and absent, despite previous acknowledgments of their necessity dating back to 2014.

The speaker pointed out that the chairs and vice chairs of the RM Committee over the years have not addressed these policy gaps, raising concerns about accountability. They urged the RM Committee to prioritize the development of these essential policies, especially in light of the audit's findings.

Additionally, the audit report criticized the financial implications of poor due diligence in land acquisitions, specifically referencing a problematic purchase near Nalama Kukui. The representative expressed frustration over wasted resources due to the absence of guiding policies that could have informed better decision-making.

As the meeting concluded, the representative sought clarity on the RM Committee's plans to address these pressing issues, emphasizing the urgency for action following the audit's release.