OHA committee authorizes $172,500 for due diligence on possible KITV, KIKU acquisition

The Office of Hawaiian Affairs (OHA) Investment and Land Management Committee on June 24 authorized up to $172,500 for due diligence on a possible acquisition of commercial television stations KITV and KIKU from Allen Media Group, approving the motion on a 5‑4 roll‑call vote.

Chair Keone Souza introduced action item ILM 26.07 and moved to "authorize and expend up to $172,500" to complete two phases of due diligence: an initial phase (up to $45,000) to secure non‑disclosure agreements and gather critical materials, and a second, more extensive phase (up to $127,500) for financial, technical and contractual analysis. The committee record includes an estimated 90‑day timeline for completion of the study and delivery of an executive summary back to the board.

The authorization came after public testimony and a lengthy trustee discussion about priorities, risk and cultural opportunity. Germaine Meyers, an Anahola Hawaiian Homestead lessee and OHA beneficiary, testified in strong opposition, citing a prior full‑board vote less than a month earlier that she said had rejected substantially the same proposal and warning that repeated reappearance of the measure could undermine public trust. "Beneficiaries deserve confidence that when the board reaches a decision, that decision will be respected," Meyers told trustees.

An online testifier (name not provided in the transcript) challenged the board to show measurable beneficiary outcomes tied to trust‑fund growth — noting the speaker’s review that the trust fund rose from about $330 million in 2016 to more than double that amount in roughly a decade — and asked how a media acquisition would deliver concrete benefits compared with housing, health or education programs.

Board Chair Malou Kahele, who explained why the item was routed through committee rather than presented directly to the full board, said the two‑phase study would allow OHA to "get into the weeds" on valuation, lease and retransmission agreements, tower and transmitter infrastructure, and a five‑year forward‑looking financial assessment. "It will take about 90 days for that due diligence to be completed," Kahele said, adding that the board would later decide whether to pursue the acquisition after reviewing the executive summary.

Trustees who supported the study framed it as a rare strategic opportunity that could advance Native Hawaiian storytelling and journalism if the strategic rationale proved sound. Trustee Galuteria compared the potential to indigenous broadcasting efforts elsewhere and argued local ownership could expand pathways for Native Hawaiian journalists and language programming. Trustees who opposed or urged caution, including Trustees Akaka and Akina, cited OHA’s limited experience in broadcasting, the organization’s ongoing internal challenges and the risk of diverting funds from other priorities.

During the public meeting, counsel and trustees referenced Hawaiʻi Revised Statutes sections 92‑4 and 92‑5A (confidential deliberations/privileges) as the legal basis for moving to executive session if necessary for negotiation strategy and confidential due diligence matters.

The committee’s action authorizes staff to begin the two‑phase study and return an executive summary for board consideration; it does not approve any purchase. Next steps include finalizing consultant contracts and starting the phase‑one information gathering. The motion passed on a 5‑4 vote, and the committee adjourned after completing the agenda.