Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 2, 1 February 1996 — Trustee submits independent legislative package [ARTICLE+ILLUSTRATION]

Trustee submits independent legislative package

by Billie Beamer Trustee-at-large I am submitting independent legislative proposals to enable OHA to function as an accountable focused growing $300 million trust, rated amongst the top 25 Hawai'i companies. 1 was the only trustee who prepared a legislative

package, but the three member legislative committee tiled my proposals preferring the status quo. OHA's sole legislative directive appropriated $300,000 for a media package. There is a critical breakdown in the follow-up of management's responsibilities. The only trustee avenue for remedy is immediate enabling legislation. The politics of the majority does not excuse vou and me from not act-

ing to address the crises. Trustees who are aware of facts contrary to majority beliefs, cannot remain silent. PRIORITY 1: AMEND HRS 10-12 TO RESTORE THE ORIGINAL 1979 TRUSTEE AUTHORITY, deleted in 1990 to be. NOTIFlED AND APPROVE HIRES, DELETED IN 1990. Re-insert the controls with an additional provision in the event of a vacated administrator's position the trustees shall assert their authority to hire and fire. The OHA administrator assured that the deletion would assure efficient management. The deletion mocked the authority of the trustees, and circumvention became standard. Financial reporting, internal controls and evaluations of staff are non existent since 1991 when "The Happy Days Began." The proviso holds the board hostage to a nonelected administrator. PRIORITY 2, DELETE /ADD PROVISOS TO HRS 10-10 The board by a majority vote, shall appoint an administrator who shall serve without regard to the provisions of chapters 76 and 77 for a term to be determined by the board. The board, by a [twothirds vote] majority vote of all members to whieh it is-entitled, may remove the administrator [for cause] at any time. The most important decision made by trustees is to hire and fire an administrator. No incentive ean

overcome poor hiring or timely decisions to terminate a manager. To require more votes to terminate than to hire, corrupts the authority to employment the qualified. [Just cause] is cumbersome. Since OHA empioyees are exempt and are at-will, all ean be terminated with notice. Trustee capriciousness should be corrected by the courts.

PRIORITY 3, Add to HRS 10-8 Meetings shall be called and held at the eall of the chair or by a quorum, as often as may be necessary for transaction of the board's business. An agenda prepared by the ehaiiman shall include items submitted by trustees for discussion. THE CHAIR now denies trustees and others the right to submit agenda items. His censorship precludes the kinds of decisions required of fiduciaries. Even if trustee suesestions are

with majority backing, the right to contribute to the agenda for discussion purposes is necessary to an open process of decision making. PRIORITY 4, to underscore the authority of the board and not the ehaiiman in legislative acts. ACT 276 Section 5. Provided that whenever the need arises, the chairperson. with the approval of a majority of the board of the trustees for the Office of Hawaiian Affairs, is authori/.ed to transfer sufficient funds and positions between programs The Morrison-Knudsen extravagant bankrupting waste of company assets by Wm. Agee, Chairman, resulted from taking authority beyond the board's scrutiny. OHA's chairman does not have exclusive power. Nine trustee votes are of equal weight. OHA's board must always retain its trust authority even when delegating. There have been too many frightening incidence of hires made and funds expended without authority. If you agree with this critical legislative request, please share this information with others and have them eall our legislators for their urgently needed awareness. Please remember, that I represent this package as a sole trustee and not the Board of Trustees. lf you ean help distribute this information please eall Roy Ah Nee or me for a packet of details, 5941899 594-1872 OR FAX 594-1864.