Senator may delve deeper into HVCB's operations
By Kelly Yamanouchi
Advertiser Staff Writer
A state senator may ask for a legislative panel with subpoena powers to delve deeper into the operations of the Hawai'i Visitors and Convention Bureau, the state's major tourism marketer.
Jeff Widener • The Honolulu Advertiser
"There's a lot of information out there that if we had subpoena powers we would get," said Donna Mercado Kim, chairwoman of the Senate tourism committee.
State Auditor Marion Higa briefs the tourism committees on her critical audit of the Hawai'i Visitors and Convention Bureau.
The committee held a joint briefing with the House tourism committee yesterday on the findings of a critical state auditor's report of HVCB. Lawmakers also questioned the visitors bureau's agreement to pay the expenses of two local television station employees who covered Gov. Linda Lingle's recent mission to Japan.
The committees met for four hours yesterday and will reconvene Monday at 1 p.m. to continue an informational briefing on the audit and the media's trip to Japan at HVCB's expense.
State Auditor Marion Higa charged in her report that the visitors bureau violated accounting principles and made unwarranted use of state money. Yesterday she said some of those practices warrant further investigation, but would not call them illegal.
Higa said the Legislature could ask the state auditor's office to continue its examination of HVCB contracts and practices. Alternatively, lawmakers could convene their own investigatory committee with subpoena powers or pursue the return of any misspent money to the state.
"Certainly the kinds of money we're talking about here is no chump change," Kim said.
Higa recounted how auditors followed the trail of HVCB's payment of a $600 family vacation for an American Psychiatric Association representative who helped book the association's conference at the Hawai'i Convention Center.
Higa showed lawmakers a June 28, 2002, e-mail from HVCB saying an event representative "would like to cash in his chips — ie, asking if we could help him out on a neighbor island vacation for his family."
Jeff Widener • The Honolulu Advertiser
Higa and Kim also criticized HVCB practices that appeared to be self-serving, specifically citing the awarding of contracts to former HVCB vice president Wei-Wei Ojiri several days after she resigned from HVCB.
Sen. Donna Mercado Kim of the Senate tourism committee criticized HVCB practices that appeared to be self-serving.
The auditor further described how HVCB President Tony Vericella's parking and speeding tickets were paid for with his executive assistant's personal checks and reimbursed by HVCB. The auditor's office discovered the tickets were for Vericella's car by checking license-plate numbers on the tickets.
As reported earlier, Vericella used state money to pay for $137 in tickets, $174 for family travel and $359 for in-room movies at hotels. Vericella has apologized and said he will repay the money.
Under questioning by lawmakers yesterday, Vericella said there are differences between practices followed by state entities and a private nonprofit agency such as HVCB.
"There clearly are some gray areas there, and we would like more than anybody for someone to clarify which things should go in which areas," Vericella said.
Higa said although HVCB is a private entity, the question of "whether this is truly a private entity when they are so dependent on state funds" has long been an issue.
Higa also criticized the Hawai'i Tourism Authority's oversight of its tourism marketing contracts with HVCB.
"When DBEDT (state Department of Business, Economic Development and Tourism) controlled the contracts, the control was tighter," Higa said.
The tourism authority formed in 1998 to pay for the state's tourism marketing contracts.
"I think you're looking at some major policy issues here ... " said Higa. "The question is: have we gotten our money's worth?"
She said she thinks the state is at a disadvantage and state employees are "not prepared to take on private entities that they're up against."
If the state is serious about getting a better bang for its buck, Higa said it has to invest in its own people.
"This is my opinion, but perhaps those who are criticizing this (paying more for state staff) are better served by having a weak state expertise," she said.
Legislators also weighed in heavily against a decision by HVCB to pay for a trip by a KITV reporter and cameraman to cover the governor's Japan mission last week.
Lawmakers were told that KITV contacted the governor's office and asked to go on the trip. The governor's office discussed it with HVCB, then offered to have HVCB pay for the station's expenses.
After the arrangement became public, KITV said it would repay HVCB for the cost of the trip, estimated at about $4,100 by HVCB.
"For us to pay for them absolutely" should be prohibited, Kim said.
Tourism authority executive director Rex Johnson said he did not know KITV's Japan trip was paid by HVCB but said he thought the television coverage of the mission would be a positive thing.
"I think that all the furor that came down ... would dictate that we relook at anything like this," Johnson said. "I don't think it would be a good practice if it were perceived in that light."
Vericella said HVCB discussed the issue with Lingle's tourism czar Marsha Wienert and senior communications adviser Lenny Klompus.
Vericella said in discussing the Japan trip arrangement with Lingle's office, he did not feel he could say no to the governor, but did not think it was going to be an inappropriate expenditure.
The tourism committees plan to ask Klompus to attend Monday's briefing when the inquiry continues.
Rep. Barbara Marumoto, R-19th District (Kaimuki, Kahala, Wai'alae Iki), said she did not think paying for KITV was a misjudgment by the state.
"I think KITV misjudged in accepting a trip to Japan, and I think they corrected that now," Marumoto said.
But Kim, a Democrat, said the bureau "lost control" to Lingle's office in planning the trip. She also criticized the visitors bureau for paying for business-class tickets for Lingle's entourage and footing the bill for wives of some of the officials taking the trip.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
