I wanted to point out that when you take a look at transferring lands and moneys to OHA you have to also ask, you have the fiduciary responsibility to ask, will these properties be cared for in behalf of the beneficiary?

Members of the Legislature, without coming to Ways and Means, without going to House Finance, without making anything public, the Office Of Hawaiians Affairs has now created several Limited Liability Corporations.

This past year lands on Kauai were transferred into Hiileialoha. This past year the Waimea Falls Park on Oahu was transferred into Hiileialoha. Few weeks ago a half a million dollars went in there now we’re waiting for another $4.2 million transfer.

I have brought for the Legislature the corporate documents of Hiileialoha, which demonstrate that upon the dissolution of this corporation all of the assets, lands and moneys will be transferred to non-profit corporations.

This is a mechanism to withdraw lands finances that are assets of our people into private corporate mechanism and I wanted to also inform you that in the last year Hiileialoha has formed three subsidiary corporations.

Only now are they in the Legislature with a bill to ask you to legalize this. Have you taken a look at this corporation?

I know that you have not received the valuation reports for any of these parcels. I doubt whether any was done. I can tell this because I’m hearing your questions. You won’t get them and we didn’t either. Is this the way the Legislature looks after the Trust Property of our peoples?

I’d like to point out to you that in the last several months there’s been a public and most embarrassing display. Allegations and evidence now surfacing of gross mismanagement of funds at OHA, failure to account for the amounts that have been reimbursed for travel to the mainland. Nepotism. Violation of the state procurement laws and violation of other contractual requirements that state agencies are required to abide by.

This is in the public forum. There has not been any response from the Attorney General’s office and I don’t think that we will see one. That is why today when I come I have to ask you to consider two alternatives. If you’re going to proceed to transfer land and money put it into an escrow account or receivership, we need to have an audit of the Office of Hawaiian Affairs both a fiscal audit and a management audit.

In the alternative, the easier thing to do is hold the measure for a year. Call for the audits and we need both a fiscal audit and a management audit. And if these audits shall come forward and satisfy the legislature that these mechanisms for holding lands and funds are legal, then perhaps you can consider transferring $200 million dollars of assets to a state agency that your legislative auditor already told you had no master plan for the Hawaiian peoples.

That is why I’m asking that you call for an audit now we need two audits and I’m asking that in the interest of protecting our peoples' assets, that you not take this transfer.

I am going to leave with Representatives Barbara Marumoto and Cynthia Thielen copies of documents that I believe raise some pretty serious legal problems with OHA. Most of which have already been made public.

I’m going to leave with you the corporate documents of Hiileialoha. I’m going to leave with you the corporate contracts for Hoakea LLC this was something created by OHA for a media campaign with Barbara Tanabe. Take a look at it. The first contract for $1.1 million dollars. Second contract $90,000. Third contract $100,000 later crossed out and changed to $250,000.

These are contracts that state on their face “for a campaign that will come into effect after the Akaka bill passes." Given the fact that the Akaka bill hasn’t passed why have all of these millions of dollars been transferred out of the Trust without anything, any monitoring of Ways and Means and House Finance.

I’m also leaving with Representatives Thielen and Marumoto all a whole list of grants given out small grants for purposes that purport to be Hawaiian governance. The problem was I couldn’t find them reported in the OHA annual statement.

Thirdly, documents that will set forth thousands of dollars reimbursed to staffers, we’re not able to present receipts for items such as a $1,000 dinner at Tony Roma’s in Seattle Washington. How does this protect the assets of my peoples. Please look at this. Please send it to the auditor.

And finally for your viewing pleasure several of the Hoakea contracts. I’m bringing this to you because I’m trying to show you that we’re not in a position to turn over 200 million dollars worth of lands and proceeds to this state agency without getting some accountability. There isn’t a rush. There is a great need to get accountability here.

And let me ask you chairs especially if you’re able to come up with a valuation reports of any of these parcels. I would appreciate receiving a copy of it. Having served as an OHA trustee and looked at many of these parcels directly I haven’t been able to get thee valuation I haven’t been able to get the formulas uh they wont’ tell me what the 200 million dollars is based on and it’s a totally different figure from what I was working with in 1998 to 2000. Completely a different figure. We need to find out what’s behind the figures and we need to get some accountability.

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