Details of federal agency's findings
The U.S. Department of Housing and Urban Development, citing what it calls "inconsistent and ineffective management practices, lax oversight and a failure to follow established procurement policies" has asked the board of directors, executive director and executive assistant of the Housing and Community Development Corp. of Hawai'i to be removed or to resign.
On the basis of its review of the agency between Sept. 30, 2002, and Oct. 10, 2002, HUD said it has found that the state housing agency:
Did not follow established procurement policies and procedures in the award of a $771,000 sole-source contract by executive director Sharyn Miyashiro to her ex-husband that HUD said was "grossly higher" than the value of the services provided. Not awarding the contract through competitive procedures, HUD found, indicates "gross negligence." HUD has asked that it be reimbursed the full amount of the contract.
Contract files for consulting services did not include the proper documentation that would justify their awards.
Ron Lim, a board director, is improperly being paid by the state from HUD money even though he works for the governor and acts as a special assistant for housing.
Ed Morimoto, who works for the state housing agency, has a 50 percent interest in a towing company that has a contract with the agency.
The agency has unfairly charged overhead costs to the federal government.
Some board members do not consistently attend board meetings and one board member said she was unsure of her duties.