Ka Wai Ola - Office of Hawaiian Affairs, Volume 40, Number 1, 1 January 2023 — Commission Addresses “Deep Moral Crisis” in Hawai'i Government [ARTICLE+ILLUSTRATION]

Commission Addresses “Deep Moral Crisis” in Hawai'i Government

V LEO 'ELELE V ^ TRUSTEE MESSAGES "

In response to widespread government corruption in Hawai'i, the State House of Representatives recently formed the Commission to Improve Standards of Conduct. While the commission is focused on confronting unethical behavior among state and loeal elected oflicials in general, publication of their findings eoincides with OHA's release of a report by forensic auditing firm Plante Moran. That report, re-

leased in Nov. 2022, identified evidence of fraud, waste, and abuse in numerous OHA hnaneial transactions between 2012 and 2016 worth over $7 million. The report issued by the commission states that Hawai'i has experienced "high-profile acts of criminal conduct on eaeh island" and concluded that Hawai'is government is in "a deep moral crisis" whieh "exists throughout eaeh corner of the state." To address the crisis, the commission has generated 30 legislative proposals intended to reshape Hawai'i's laws on issues related to ethics and corruption. While these measures are of value for all government agencies, many ean be directly applied to the Ofhce of Hawaiian Affairs (OHA). These proposals ean supplement the many reforms whieh, to the credit of OHA's Board of Trustees, have already been implemented at OHA. Some of the commission's bold proposals include the following legislative reforms: 1. The establishment of a new criminal offense for fraud at the state level similar to federal criminal statutes. This may promote broader accountability for individuals involved in fraud such as the ineidents that occurred at OHA. 2. The establishment of an Ofhce of the Puhlie Advocate and the publication of a "bill of rights" for the puhlie whieh would "embody the ideals of respect, fairness,

openness and dignity" in the legislative process. Specifically related to OHA, the proposed new office may empower OHA beneficiaries and Hawaiian eonstituents to demand greater transparency and accountability from elected officials. 3. The requirement of greater disclosure of relationships between legislators and lobbyists in addition to identifying bills, budget items, and programs that are supported or opposed by lobbyists. This proposal

eouiel be applieahle to OHA given the numerous hnaneial transactions flagged as conflicts of interest. 4. The implementation of term limits for state legislators whieh prohibits them from serving no more than 16 years in their lifetime in either the House or the Senate. There is some evidence that term limits may prevent political corruption. Emeritus Law Professor Randy Roth, a member of the commission and eo-au-thor of Broken Trust, has previously testified before OHA's Board of Trustees eoncerning OHA's LLCs. Recently, regarding the ethical condition of the government in Hawai'i, Roth said, "rather than engage in willful blindness...we've got to engage in robust dialogue, discussion, debate, as to what this means and what ean be done about it." It is sobering that the commission has labeled the level of government corruption in Hawai'i as a "deep moral crisis." Fortunately, the commission's report is a step in the direction of resolving this moral crisis. For our part at OHA, we have a sacred kuleana to ensure that all our practices are pono. That is why we must take appropriate action and deal with the evidence of fraud, waste and abuse identified by the Plante Moran report. We now have a great opportunity to serve our beneficiaries and be a model of integrity to other government agencies. Holo mua! ■