Latest news with #Hannemann
Yahoo
08-04-2025
- Business
- Yahoo
Hawai‘i Tourism Authority chair recommends putting audit probe ‘to bed'
STAR-ADVERTISER FILE PHOTO Hawaii Convention Center STAR-ADVERTISER FILE PHOTO Hawaii Convention Center Hawai 'i Tourism Authority board Chair Todd Apo told the HTA Administrative and Audit Standing Committee on Monday that he did not 'see an abuse of discretion ' regarding Hawai 'i Convention Center discounts received by two nonprofits affiliated with the previous HTA board chair, Mufi Hannemann, and recommended putting the matter 'to bed.' The committee was expected to take action on issues raised in the fiscal year 2024 HTA Independent Financial Audit, which was presented at HTA board meetings on March 25 and 27 and led Hannemann to resign his position as board chair, though he remains on the board. State Auditor Leslie H. Kondo, who was expected to speak at the committee meeting, did not show up. The financial audit of HTA's fiscal year 2024 by Accuity LLP, a firm contracted by the state auditor's office, determined that there were procedural deficiencies that allowed for free food and rent for events at the convention center, but did not issue a finding of fraud. The main audit document did not name the events in question, but they were the Hawai 'i Lodging &Tourism Association's public-safety conference, which was held at the convention center on Dec. 6, 2023, and a meeting of the Pacific Century Fellows, which was held May 15 in an HTA boardroom at the convention center. The two organizations were not originally billed by the convention center as the events were reserved under HTA's space form, and food and beverage costs for events on those forms are later reconciled with HTA. However, HLTA and PCF were presented with a bill for nearly $14, 000 prior to the March 27 HTA board meeting. Apo told HTA's Administrative Audit and Standing Committee, 'I believe the CEO had the authority and discretion to identify HTA events and use the HTA request form in order to do those which happened here. I understand that there can be a difference of opinion as to whether these two events should have been HTA events, but I don't see an abuse of discretion in what was done in deciding to use these forms. Therefore, two entities were not charged.' Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Hannemann said he resigned as board chair to avoid distractions and to focus on repairing damage to the reputations of HLTA and PCF. He said that he did not ask for special use and that the meetings were approved by HTA staff leadership and charged in accordance with the normal HTA and center practices. He said Monday in a statement to the Honolulu Star-Advertiser, 'I would like to thank the Hawai 'i Tourism Authority Chair Todd Apo for correcting the record and clarifying the unfortunate chain of events regarding the use of the Convention Center. I am especially pleased that his recent statement clears me and the two nonprofits, the HLTA and Pacific Century Fellows, of wrongdoing. The integrity of these non-profit organizations—one of which has raised millions of dollars for Hawaii's charities and the other a premier leadership mentoring program—should have never had their reputations damaged or impugned.' Daniel Naho 'opi 'i, who resigned as interim HTA president and CEO effective March 21, told the Star-Advertiser that he invited PCF to the convention center and had administrative staff fill out an HTA space request. Naho 'opi 'i said he did not make a request for the HLTA event, which fell under destination stewardship. However, he said that both events qualified as HTA activities based on past practices. 'They were typical of many other events that we had done, ' Naho 'opi 'i said. 'We've had many requests. This is not unusual.' Apo noted that since the audit report, HTA has made changes to how it reserves convention center space and is working to determine whether adopting additional policy or procedures is warranted. 'To me this should put to bed the questions of these two events that we were dealing with at Tuesday's and Thursday's special and regular board meetings, ' he said. 'I'd really like us to be able to focus on correcting going forward, learning from what happened, and to move on.' The HTA board has not taken a vote related to the issues, nor have members of the HTA Administrative and Audit Standing Committee. Not all details about the procedural deficiencies that allowed for free food and rent for events at the convention center have been addressed, nor have all of the billing issues been resolved. Hannemann said the organizations were surprised to receive a bill over 10 months after the last event given that there were numerous indications that the two events were being co-sponsored by HTA or even comped by the center. HTA board Member Stephanie Iona, who previously managed Koloa Ballrooms, Hemmeter Corp. events and many hotel operations for large conventions, said she is among the board members who requested that a full list of discounted and comped events be shared and compared with what was submitted to the auditor. Iona said based on her past experiences, final paperwork should include key information such as the date, time of the event, number of guests, menu and services along with the payment requirement and a customer signature agreeing to the services. 'No services are provided without payments. But should a concession be provided after the services, any balance is sent with a bill for payment, ' she said. 'If not paid, delinquent notices, etc., are followed up, leading to harsher measures of collection if needed.' Since receiving invoices, HLTA and PCF have sent money to the center. However, both organizations are asking for a clarification of the costs, which they say are inconsistent with the number of attendees and their recollection of the food and beverages that were served. State Business, Economic Development and Tourism Director James Kunane Tokioka, who is a voting member of the HTA board, told the Star-Advertiser that to his knowledge no additional organizations have been billed. Apo told the Star-Advertiser after the committee meeting that he was satisfied the issues raised by the financial audit were examined and that corrective action has been taken. 'Whether anything else comes up in regard to these transactions, we will address them if that happens, ' he said.'I thank Mufi for having stepped out of the chair position so that we could get this look and understanding of the situation objectively, and appreciate the patience of the two organizations, who do really good things for our state.' While Monday's meeting was about moving on, it stopped short of full resolution, leaving some questioning the thoroughness of the HTA board's inquiry. It also left others questioning whether the call-out was targeted since only the HLTA and the PCF were released as examples, and Naho 'opi 'i said other organizations received similar discounts. To be sure, there have been many public instances of board infighting, especially between Hannemann and Tokioka, who is also a voting member of the board. HTA board member Mahi na Paishon said at the committee meeting, 'I remain concerned on how this will unfold in terms of possible perception in the way that HTA is handling communications. The possible perception (is ) that perhaps there could be concerns of possible defamation or things of that nature and possible targeting of certain individuals, whether it be at the staff level or the board level.' Tokioka told the committee that he was ready to move on, though he had previously been among the most critical HTA board members who were reviewing the allegations against Hannemann that were brought forward during the audit by HTA Vice President of Finance Isaac Choy. 'I agree with Chair Apo's assessment of all of this, and obviously, I was one of the vocal people in the last two meetings. I think the best thing for us to do now is to move forward, ' Tokioka said during the committee meeting. 'I think that we can all agree that it should not have happened and we should have had better safeguards in place, and that's on HTA. We've fixed that and we've moved forward.' Tokioka added, 'I'm sure that the auditor is going to be watching this or hearing about this, and I'm sure he will respond to what Chair Apo said, and that's his prerogative.' HTA board member David Arakawa questioned Apo's recommendation during the committee meeting and expressed concerns about lingering issues. 'I take issue with the chair making a finding that there was no abuse of discretion. I think the audit speaks for itself, ' Arakawa said. 'If that's our position, that there was no abuse of discretion, then we should formally challenge the audit.' Following the audit discussion, the committee also went into executive session for an agenda item listed as 'Discussion, Evaluation, and Action Relating to the Resignation of Interim President &CEO Daniel Naho 'opi 'i and the Proposed Interim President &CEO, Chief Administrative Officer, Caroline Anderson.' After the lengthy closed-door meeting, John Cole, state deputy attorney general, said there were a motion and a second on a recommendation for an interim HTA president and CEO but that the motion did not pass, so no action was taken. Even if the committee had voted to support a new interim president and CEO, the full HTA board would have had to approve its recommendation. Anderson has been serving as HTA interim president and CEO since Naho 'opi 'i's departure.
Yahoo
29-03-2025
- Business
- Yahoo
Legislature moves to tighten oversight of Hawai‘i Tourism Authority
State lawmakers took swift action Friday to amend a bill to tighten oversight of the Hawai 'i Tourism Authority, which is undergoing more leadership shake-ups, while dealing with allegations that procedural deficiencies allowed for inappropriate freebies at the Hawai 'i Convention Center. The House Finance Committee is moving Senate Bill 1571 forward with a new amendment that requires that the governor appoint the HTA CEO and that the Senate confirm the choice. The bill also downgrades the HTA board to an advisory board, which continues the trend of increasing the state Department of Business, Economic Development and Tourism's oversight of HTA. Rep. Adrian Tam (D, Waikiki ), chair of the House Committee on Tourism, said he proposed the amendment to SB 1571, which was supported by the House Committee on Tourism and the House Committee on Labor before it was relayed to the House Committee on Finance. 'We just feel that we need to start the discussion of having legislative oversight on who becomes CEO of HTA given what has been happening recently at the HTA board, ' Tam said. 'We've seen in the past where the Senate has rejected gubernatorial nominees. These checks and balances will ensure that the CEO truly does work for the people of Hawaii.' Tam said improving oversight of HTA has been a hot topic since the HTA board met Tuesday and Thursday to discuss the findings of a financial audit of HTA's fiscal year 2024 by Accuity LLP, a firm contracted by the State Auditor's Office. Mufi Hannemann resigned Thursday as chair of the HTA board, saying he wants to end distractions after allegations surfaced that two of his nonprofits, the Hawai 'i Lodging and Tourism Association and the Pacific Century Fellows, received Hawai 'i Convention Center freebies. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Hannemann, a former Honolulu mayor who is also the longtime president and CEO of HLTA and the founder of the Pacific Century Fellows, told the Honolulu Star-Advertiser, 'Recent questions surrounding unpaid invoices at the Hawai 'i Convention Center have cast unnecessary scrutiny on two highly respected organizations I am affiliated with—distractions that risk overshadowing the facts and the important work we are all committed to.' 'Allegations were raised regarding unpaid invoices totaling approximately $14, 000 for events held at the Hawai 'i Convention Center. However, the state deputy attorney general assigned to HTA stated that there was not enough information to warrant an investigation at this time, and the State Auditor found no fraud, ' he said. 'The auditor did recommend that HTA strengthen its internal policies to ensure more accurate and timely billing. I fully support this recommendation.' Hannemann's resignation follows other key HTA staff leadership departures and changes, as well as board changes. Caroline Anderson was recently appointed as HTA's new interim president and CEO following the resignation of its previous interim top leader, Daniel Naho 'opi 'i, who had been in the role for 18 months and had been the agency's 11th top leader since the state Legislature created the HTA in 1998. Kalani Ka 'ana 'ana, HTA chief stewardship officer, also has taken over as interim HTA public affairs officer after the departure of T. Ilihia Gionson. Anderson also serves as HTA's planning director and interim chief administrative officer. But the HTA chief brand officer position is vacant until a decision is made on how to reallocate an already overburdened staff. Ka 'ana 'ana said HTA is budgeted to have 30 full-time equivalent positions, but currently only 23 are filled. The staff shortages have weighed heavily on HTA staff, as has mounting confusion about the chain of command since 2024's Legislature took away HTA's exemption from administrative boards, which made it less autonomous from DBEDT. Todd Apo, who was elected to take Hannemann's place as HTA chair, and Anderson represented HTA at the SB 1571 hearing Friday. Anderson stood on her written testimony, which offered comments on the implications that the bill would have on HTA's governance and the State Planning Act. 'HTA's role as a 'policy-making and advisory board' needs clarification. We are already experiencing confusion and difficulties with the recent changes that have blurred some lines between the Authority and the Department, ' Anderson wrote. 'Adding the word 'advisory' would create additional confusion and uncertainty. The high importance of industry and community input to HTA's work is vital to the purpose, mission, and impact of the Authority's work. Moving that to an advisory duty should first include greater discussion with all stakeholders.' HTA was not immediately able to respond to the latest amendment regarding the changes to how a CEO is appointed. HTA in recent years has grown more politicized. But Better Destination LLC, a third-party contractor hired by the HTA, recommended last summer that HTA should restructure to a community-driven nonprofit destination stewardship organization rather than a government entity under the state Legislature. HTA had formed a Governance Study Permitted Interaction Group to review the findings, but so far, the PIG has not presented a recommendation. University of Hawaii at Manoa political scientist Colin Moore said the governance changes proposed by SB 1571 seem reactive. But Moore added, 'It's obvious that the status quo isn't working, so more conversation is warranted.' 'You either want to take the politics out of it, like the consultant suggested, or there's probably an argument to put the politics back, ' he said. 'Having the governor appoint the CEO and the Senate confirm the choice in some ways elevates the position and makes the governor and the Senate more directly responsible—that's not necessarily a bad thing.' Jerry Gibson, president of the Hawaii Hotel Alliance, said the bill's changes are worth considering, but noted that HTA's advisory board must include members who are savvy about tourism and marketing. 'We are very fortunate to have a governor that is very in tune with tourism and also in tune with what it does for the economy and for the 200, 000 jobs that revolve around tourism, ' Gibson said. 'I have confidence that the governor and the Senate would hire the very best.' Keith Vieira, principal of KV &Associates, agreed with Gibson but said the change could prove challenging if the political landscape changed. 'The governance study was concerned about politics, and this adds more politics, ' Vieira said. 'You want to leave it up to the logic of the board and the intent of the board to do the right thing, whereas we know that certainly hasn't always been the case in the Legislature where it's politics and power.' 9 Comments By participating in online discussions you acknowledge that you have agreed to the. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our. Having trouble with comments ? .
Yahoo
28-03-2025
- Business
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Hannemann resigns amid HTA controversy
The Hawai 'i Tourism Authority is back in the hot seat with state legislators and the public as it undergoes more leadership shake-ups while dealing with allegations that procedural deficiencies allowed for inappropriate freebies at the Hawai 'i Convention Center. Mufi Hannemann resigned Thursday as chair of the Hawai 'i Tourism Authority board, saying he wants to end distractions after allegations surfaced during a discussion of a state financial audit that two of his nonprofits, the Hawai 'i Lodging and Tourism Association and the Pacific Century Fellows, received Hawai 'i Convention Center freebies. Hannemann, a former Hono lulu mayor who is also the longtime president and CEO of HLTA and founder of the Pacific Century Fellows, told the board Thursday, 'The best thing for me to do is to step down as chair, and then I will have to think whether I want to stay on the board, because the reputations of those incredible, important organizations have been put into question.' The allegations emerged Tuesday during a special HTA board meeting to discuss the findings of a financial audit of HTA's fiscal year 2024 by Accuity LLP, a firm contracted by the state auditor's office. Accuity's audit determined that there were procedural deficiencies that allowed for free food and rent for events at the convention center, but did not issue a finding of fraud. The audit did not name the events in question, but they were the Hawai 'i Lodging & Tourism Association's public safety conference, which was held at the convention center on Dec. 6, 2023, and a meeting of the Pacific Century Fellows, which was held May 15 in an HTA boardroom at the convention center. The board did not take any action on the allegations about comps during the HTA special board meeting, which was continued until Thursday. At Thursday's meeting the HTA board discussed the issue for about an hour and a half, with many members expressing concerns about public perception and trust. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. Ultimately, the board voted to move further discussion to the next HTA Administrative & Audit Standing Committee Meeting. The committee is expected to make a recommendation to the board—which is likely to be well scrutinized by the public and could determine how well HTA fares as the state Legislature winds down. The timing of HTA's latest drama comes as the House Finance Committee is slated at 2 p.m. today in Room 308 to hear Senate Bill 1571, which would give the state Department of Business, Economic Development and Tourism more power over HTA by downgrading the HTA board to an advisory board. House Majority Leader Rep. Sean Quinlan (D, Waialua-Haleiwa-Punaluu ) said lawmakers have varying opinions on the bill. 'One argument is that if you make the board advisory, that would make people less likely to want to serve on the board because it's a big-time commitment, especially for a neighbor islander. I really do love the board members. I think they are wonderful people—sometimes they don't always get along, ' Quinlan said. 'You could make another argument that the board hasn't been able to quite figure things out lately. I think it's a discussion that is going to involve a lot of people. They need to really think about what is the future of the board and what responsibilities should they have.' State Rep. Adrian Tam (D, Waikiki ), current chair of the House Tourism Committee, said HTA's current issues also could determine how lawmakers weigh their budget requests. 'I think that the HTA board needs to sort itself out and focus more on tourism. All this infighting only hurts this industry and makes us dysfunctional, ' Tam said. 'We are going through a session right now and they have presented their budget. And this is not helping their case on whether or not they have have the confidence of Legislature.' The job of convincing the state Legislature that HTA is up to the task now falls to former Honolulu City Council Chair Todd Apo, whom the board elected to replace Hannemann as HTA chair, and HTA Planning Director Caroline Anderson, who was recently appointed to serve as interim HTA president and CEO and interim HTA administrative officer after the March 21 resignation of Daniel Naho 'opi 'i. Gov. Josh Green appointed Apo to serve on the board in October. Apo is CEO of 'Iole, a nonprofit focused on sustainability and resilience. He also served in senior roles at the Hawai 'i Community Foundation and Howard Hughes Holdings Inc. HTA board member James McCully, chair of the HTA Administrative and Audit Standing Committee, said, 'I think this is a watershed movement for this board, and I enter into it with great optimism and I thank member Apo for being willing to serve.' Hannemann, who was a Green appointee to the HTA board, was largely credited in 2024 with helping HTA to make a comeback in the state Legislature when it emerged from session with a recurring $60 million lump sum budget—no small feat for an agency that had endured cutbacks, organizational changes and the threat of repeal or defunding over several earlier sessions. However, legislators showed that some lingering doubts about HTA's capabilities remained when they passed Senate Bill 3364, which went into effect July 1, and repealed HTA's exemption from the administrative supervision of boards and commissions. The exemption from the administrative supervision of boards and commissions was the last one HTA had since it was founded in 1998. The Legislature also took away its procurement exemption in 2021, and in 2022 the agency lost its special fund status. Since the exemption's removal, the Hannemann-led HTA board and James Kunane Tokioka, director of the state Department of Business, Economic Development and Tourism, have had some very public disagreements over HTA's budget, HTA's use of its crisis funding and the top salary threshold for a new president and CEO. Tokioka said removal of the exemption, which was instituted by legislators who had lost confidence in HTA, makes it 'an attached agency that needs approval for expenditures, the budget and (spending categories ).' Naho 'opi 'i, who had been HTA's 11th top leader since the state Legislature created the agency in 1998, indicated in a resignation letter seen by the Honolulu Star-Advertiser that the HTA /DBEDT leadership structure was hard to navigate. 'I have had the privilege of working alongside dedicated colleagues and passionate stakeholders who recognize the delicate balance between tourism, culture, and the well-being of our residents, ' Naho 'opi 'i said. 'However, my time in this position has also been marked by increasing discomfort due to the actions of some board members and the persistent political interference from external agents. Instead of fostering an environment where HTA can operate with the stability and strategic clarity needed to fulfill its mission, I have found myself endlessly navigating a landscape dominated by conflicting political agendas, inconsistent direction, and decisions that often appear driven by external pressures rather than the long-term interests of Hawaii's people and place.' Tokioka said he wishes Naho 'opi 'i well, but added, 'There were things that I thought he should do and not do.' It's still unclear whether Hannemann will have the option of choosing to remain on the HTA board, but if he does, Tokioka said he is confident that there will be a path forward. 'I can work with everybody. It's never been personal for me. I have 10 other boards that fall under DBEDT, and not on one of them do I have any conflict with the chair or executive director, ' he said. The HTA Administrative Audit & Standing Committee has much to unpack from the meetings on Tuesday and Thursday, and there were some inconsistencies in how HTA applied its policies. Hannemann told the HTA board Thursday that it was only that morning that he had been presented with a bill from the convention center for $14, 000 in relation to the two events. Convention Center General Manager Teri Orton told the HTA board that Hanne mann's organizations were not billed sooner for the events because they were reserved as HTA space. Hannemann said he did not expect a bill for the Pacific Century Fellows meeting since he had planned to hold it in another location and moved it there at Naho 'opi 'i's request to make it more convenient for the HTA staff who were participating. He added that he believed the HTA space request for the HLTA Visitor Public Safety Conference was appropriate as it was an HTA-sponsored event. The forms reserving the events as HTA space were unsigned. Now the HTA board must try to determine who approved the events as HTA space and whether that approval was out of character or the result of undue influence. Tokioka said once the billing issue emerged in the financial audit, HTA's policy was tightened to require the signature of the HTA president and CEO and the HTA vice president of finance before any comps for HTA space are approved. State Auditor Leslie H. Kondo told the Star-Advertiser, 'We didn't find any evidence of fraud. If we had found evidence of fraud, we would have reported it immediately to the board and to management.' 'Based upon the information that we were provided, it appeared that there were organizations that were receiving complimentary or discounted use of the facility that did not seem consistent with HTA's use policies, ' Kondo said. 'We didn't look at the records themselves, so I don't know the total. But I can tell you that there were more than the two organizations that Mr. Hannemann is associated with that appear that they were able to use the facility without having to pay or at a discounted rate.' John Cole, state deputy attorney general, told the Star-Advertiser that the matter had been referred to the Attorney General's Office, but it determined that there was not enough information to open an investigation. The State Ethics Commission told the Star-Advertiser that state ethics investigations are confidential, and it could not comment as to whether an investigation had been opened.
Yahoo
28-03-2025
- Business
- Yahoo
Mufi Hannemann resigns as Hawaii Tourism Authority Chair amid audit questions
HONOLULU (KHON2) — Mufi Hannemann resigned Thursday as chair of the Hawaii Tourism Authority (HTA) Board, following ongoing questions raised by a state audit about discounted services at the Hawaii Convention Center involving his non-profits. Councilmembers hope for progress as Blangiardi set to start town hall meetings The audit, which led to referrals to the state attorney general and the ethics commission, did not allege fraud. However, concerns were raised regarding $14,000 worth of discounted or comped services, including space and catering, for events organized by the Hawaii Lodging and Tourism Association and Pacific Century Fellows—both of which are led by Hannemann. At Thursday's HTA board meeting, Hannemann announced his resignation, explaining that continued questioning from fellow board members about the discounted services left him with no choice.'The best thing for me to do is step down as chair, and then I'm going to have to think if I want to stay on the board,' he said. 'The reputations of those credible, important organizations have been put into question.' Hannemann further clarified that his organizations were unaware of any outstanding bills that had not been paid. In response to the audit, changes have already been made to the process for using the convention center's facilities. Download the free KHON2 app for iOS or Android to stay informed on the latest news Following Hannemann's resignation, Todd Apo was voted in as the new chair of the HTA board. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
28-03-2025
- Business
- Yahoo
Hannemann resigns as HTA chair amid allegations of freebies
GEORGE F. LEE / SEPT. 30 Mufi Hannemann resigned today as chairperson of the Hawai'i Tourism Authority Board today amid a dispute over Hawaii Convention Center freebies. Hannemann is seen here attending an HTA event at the Convention Center in September. 1 /2 GEORGE F. LEE / SEPT. 30 Mufi Hannemann resigned today as chairperson of the Hawai'i Tourism Authority Board today amid a dispute over Hawaii Convention Center freebies. Hannemann is seen here attending an HTA event at the Convention Center in September. GEORGE F. LEE / MARCH 14 Mufi Hannemann resigned today as chairperson of the Hawai'i Tourism Authority Board today amid a dispute over Hawaii Convention Center freebies. Hannemann is seen here attending the fourth State of the City address by Honolulu Mayor Rick Blangairdi at the Mission Auditorium this month. 2 /2 GEORGE F. LEE / MARCH 14 Mufi Hannemann resigned today as chairperson of the Hawai'i Tourism Authority Board today amid a dispute over Hawaii Convention Center freebies. Hannemann is seen here attending the fourth State of the City address by Honolulu Mayor Rick Blangairdi at the Mission Auditorium this month. GEORGE F. LEE / SEPT. 30 Mufi Hannemann resigned today as chairperson of the Hawai'i Tourism Authority Board today amid a dispute over Hawaii Convention Center freebies. Hannemann is seen here attending an HTA event at the Convention Center in September. GEORGE F. LEE / MARCH 14 Mufi Hannemann resigned today as chairperson of the Hawai'i Tourism Authority Board today amid a dispute over Hawaii Convention Center freebies. Hannemann is seen here attending the fourth State of the City address by Honolulu Mayor Rick Blangairdi at the Mission Auditorium this month. Mufi Hannemann resigned as chairperson of the Hawai'i Tourism Authority Board today saying he wants to end distractions after allegations surfaced during discussion of a state financial audit that two of his nonprofits received Hawai'i Convention Center freebies. Allegations emerged Tuesday during a special HTA board meeting to discuss the findings of a financial audit of HTA's fiscal year 2024 by Accuity LLP, a firm contracted by the State Auditor's Office. Accuity's audit determined that there were procedural deficiencies that allowed for free food and rental income for events at the Convention Center, but did not issue a finding of fraud. The audit did not name the events in question but they were the Hawai 'i Lodging & Tourism Association's public safety conference, which was held at the Convention Center on Dec. 6, 2023, and a meeting of the Pacific Century Fellows, which was held May 15 in an HTA boardroom at the convention center. Hannemann, the former Honolulu mayor who is also the longtime president and CEO of HLTA and the founder of the Pacific Century Fellows, told the board today, 'The best thing for me to do is to step down as chair, and then I will have to think whether I want to stay on the board, because the reputations of those incredible, important organizations have been put into question.' Hannemann told the board that he was only today presented with a bill from the Convention Center for $14, 000 in relation to the two events. Convention Center General Manager Teri Orton told the HTA board that Hannemann's organizations were not billed sooner for the events because they were reserved as HTA space. The forms reserving the events as HTA space were unsigned. Now, the HTA board must try to determine who approved the events as HTA space and whether that approval was out of character or the result of undue influence. Don 't miss out on what 's happening ! Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE ! Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA. State Auditor Leslie H. Kondo told the Star-Advertiser, 'We didn't find any evidence of fraud. If we had found evidence of fraud, we would have reported it immediately to the board and to management.' 'Based upon the information that we were provided, it appeared that there were organizations that were receiving complimentary or discounted use of the facility that did not seem consistent with HTA's use policies, ' Kondo said. 'We didn't look at the records themselves so I don't know the total. But I can tell you that there were more than the two organizations that Mr. Hannemann is associated with that appear that they were able to use the facility without having to pay or at a discounted rate.' State Department of Business, Economic, Development & Tourism director James Kunane Tokioka told the Honolulu Star-Advertiser that once the state audit brought up the issue, the policy was tightened to require the signature of the HTA president and CEO and the HTA vice president of finance before any comps for HTA space are approved. The board did not take any action on the allegations about comps during the HTA special board meeting, which was continued until today. At today's meeting, the HTA board discussed the issue for about an hour and a half, with many expressing concerns about public perception and trust. Ultimately, the board voted to move further discussion to the next Administrative & Audit Standing Committee Meeting. The committee is expected to make a recommendation to the board later. John Cole, state deputy attorney general, told the Star-Advertiser that the matter had been referred to the AG's office, but they determined that there was not enough information to open an investigation. The State Ethics Commission told the Star-Advertiser that state ethics investigations are confidential and it could not comment as to whether or not an investigation had been opened. After Hannemann's resignation, the board elected former Honolulu City Council chairperson Todd Apo to serve as its new chair. Gov. Josh Green appointed Apo to serve on the board in October. Apo is CEO of 'Iole, a nonprofit focused on sustainability and resilience. He has also served in senior roles at the Hawai'i Community Foundation and Howard Hughes Holdings Inc. 49 Comments By participating in online discussions you acknowledge that you have agreed to the. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our. Having trouble with comments ? .
