Office of Hawaiian Affairs Trustee Keli`i Akina is publicly calling on the OHA Board of Trustees to take action to remove CEO Kamana`opono Crabbe, after a scathing audit revealed serious financial mismanagement.
“Although the state audit reveals that OHA’s CEO is personally responsible for the misspending of millions of dollars, the Trustees who allow him to remain in place are now just as complicit,” Trustee Akina said.
“Failure to act decisively to remove the CEO, considering the overwhelming evidence presented by the state Auditor, would be a dereliction of our fiduciary duty as Trustees to protect the Native Hawaiian trust fund.”
After months of rigorous examination of OHA grants, sponsorships and spending in fiscal years 2015 and 2016, the state audit identified gross financial mismanagement and inappropriate spending.
According to the state Auditor, there were numerous instances where the CEO ignored grants staff recommendations, effectively overriding processes put in place to ensure fairness and impartiality.
“Although $7 million of Native Hawaiian trust funds were awarded by OHA in accordance with strict internal policies and controls, twice that amount- $14 million- flowed out of OHA through loosely-administered, noncompetitive methods,” Trustee Akina continued. “While the OHA Board had knowledge of some of these expenditures, the CEO should be working with us, and not against us, in fulfilling our fiduciary duty over the funds.”
The state Auditor also found that in fiscal year 2015, the CEO exceeded his discretionary sponsorship budget of $65,000 to award a total amount of $285,499. Similarly, in 2016, the CEO exceeded his discretionary sponsorship budget of $100,000, and funds expended totaled $210,700.
“The findings of the state audit are egregious, but are merely the tip of the iceberg. They validate the need for a more comprehensive, independent audit. For example, the state Auditor raised questions about, but did not investigate, OHA’s limited liability companies for which OHAs CEO is a manager,” said Trustee Akina. “The need to conduct this independent audit without delay or interference is one more reason the CEO must be removed immediately.”
