Tourism nominee advances to Senate

By Katherine Nichols
Advertiser Staff Writer

JOHNSON: Commitment to position questioned

The five previous nominees to the authority board enjoyed relatively smooth passage from Senate hearing to Senate floor.

But the nomination of the former Bank of Hawaii chief from Gov. Ben Cayetano's office drew questions about Johnson's commitment to the authority, and the hearing was repeatedly delayed. E-mails and phone calls from the governor's office and community urged the Senate committee to vote for Johnson.

Sen. Donna Mercado Kim, D-15th (Kalihi Valley, 'Aiea), spoke out against what she called pressure from the governor's office to approve Johnson. But Mercado, who leads the eight-member committee, ultimately recommended at the group's first full assembly that Johnson be approved.

"I don't believe it's fair (for the governor) to criticize us because we have these legitimate concerns," Kim said later. "I do have strong beliefs, but I do compromise."

Kim said that her "knee-jerk reaction" to the governor's accusation that she had a "personal vendetta" was to deny the nomination, knowing her colleagues would support her recommendation.

"But that doesn't do anything for my credibility," she said.

Kim said she was impressed that Johnson had read the state auditor's report of the tourism authority, completed his vision statement and convinced her of his commitment to the position.

"I believe he will live up to his statements and will be accountable," Kim said.

Sen. Sam Slom, R-8th (Wai'alae Iki, Hawai'i Kai), did not agree. Though he made clear that he was not challenging Johnson's character or integrity, he took issue with Johnson's reluctance to move the authority toward openness and public awareness.

As a former member of the Economic Revitalization Task Force that recommended formation of the tourism authority, Johnson went behind closed doors to make important decisions, Slom said.

When Johnson expressed in the hearing that he thought this practice acceptable, Slom said, "To me that's a key point. We're talking about involving the public. I think that's a major issue that's not resolved."

Because the issues he raised were not adequately addressed, Slom did not support the nomination.

"If I'm to be the only person to vote no, then so be it," he said. "I will do so with a clear conscience."

If Johnson is confirmed, Slom said he would support the nominee and "keep his feet to the fire and make sure that we will continue with what the chair (Kim) has tried to do to have a more open, diversified, accountable and responsible board."

The sixth nominee in the largest turnover of the board since the tourism authority's inception in 1998, Johnson is former chairman and chief executive of Bank of Hawaii and its former parent company, Pacific Century Financial Corp.

After 42 years with the company and several tumultuous years of restructuring, Pacific Century's falling profits, asset-quality problems and mounting pressure from shareholders indirectly forced Johnson into retirement in August 2000.

In his vision statement, Johnson said he was concerned about the "apparent lack of governance that has occurred since the HTA was established." As a result, he said, he would work for changes to comply with the auditor's report and fulfill the authority's primary mission.