Regents see need for full disclosure

By Beverly Creamer
Advertiser Education Writer

Reacting with sensitivity to issues of potential conflict of interest, University of Hawai'i regents raised concerns yesterday about the ownership of a Waikiki hotel being considered to provide 500 dorm spaces for the coming year.

And they expressed concern that they weren't immediately told the Queen Kapi'olani Hotel — owned by a company of former board chairman Bert Kobayashi, currently an ex-officio member of the UH Foundation board — is one of those under consideration for use as a dormitory next year for Manoa and Kapi'olani Community College students.

The other hotel under consideration is the 'Ohi'a Hotel, owned by developer Peter Savio.

"We clearly have fiduciary liability in these matters," said regent Kitty Lagareta, who called for disclosures when any business deal brought to the board involves a sitting member of the board or the foundation's board.

Chairwoman Patricia Lee also called for "disclosure by the administration" of such relationships.

Concern over potential conflicts of interest have been high since last summer when Lagareta and regent Ted Hong questioned whether the board could approve a university development on Maui on land owned by then-regent Everett Dowling. Dowling had recused himself from discussions but he subsequently resigned. A contract for the development has since been signed.

Hong and chairwoman Lee have subsequently asked for legal opinions from university counsel regarding attorneys in Lee's law firm holding contracts with UH, and the fact that Hong's sister represented the Office of Hawaiian Affairs in a suit against UH. They were both told to recuse themselves when such matters come up.

Yesterday, regent Jane Tatibouet said the board understands the need for additional dorm space, but "it has to be properly put together and we have to understand the conflicts."

At the same time regents wanted assurances that any hotel chosen will provide ample furniture for each student, as well as Internet access. They also want guidelines in place involving items such as cleaning and parking and how costs are shared.

With time short to make a final decision, the regents want to take action at their next meeting.

During committee meetings yesterday regents also deferred approval of the reorganization of the office of the Manoa chancellor, concerned that there had not been sufficient consultation with the student government and the unions.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com or 525-8013.