Posted on: Wednesday, July 16, 2003

EDITORIAL
First audit subject: city liquor commission

Leslie Tanaka was sworn in as the new city auditor at Honolulu Hale on July 1. He's the first to hold the job.

We're sure council members have strong ideas about what city functions should first undergo his scrutiny. We suggest turning him loose on a thorough management audit of the city Liquor Commission and its employees.

The business that the Liquor Commission regulates most assuredly needs to be regulated. It ranges from upscale resort lounges to the dingiest dive. For many establishments, failure to obtain or renew a liquor license is tantamount to a death sentence.

Two very strong indications suggest that Honolulu may not be entirely well served by the current system of regulation:

• Eight liquor inspectors were indicted on charges of taking bribes from club owners. Five pleaded guilty and three are set to go on trial in November.

• An Ethics Commission ruling this week scolds the Liquor Commission for allowing liquor licensees to donate booze, food and gift certificates for the annual statewide industry conference it hosted in 2000. The conference, hosted by county commissions on a rotating basis, brings together commissioners and industry members to discuss work-related programs.

We can clearly see the value of this kind of meeting, but wonder why it had to be held at the Kahala Mandarin Oriental Hawai'i Hotel in a party atmosphere, instead of in a businesslike and less opulent venue.

We worry when people in public service begin expecting entitlements that places them in the appearance of conflict. The businesses donating prizes, drinks and services are businesses that depend on the Liquor Commission for the licenses that keep them in business.

So we'd like to see Tanaka do a thorough study — beginning with a look at how other cities handle this needed but nettlesome and graft-prone regulation.