Visitors bureau returns money to state
By Kelly Yamanouchi
Advertiser Staff Writer
Several reviews during the past six months of the Hawai'i Visitors and Convention Bureau's use of public money have prompted the agency to return more than $20,000 to the state tourism authority.
The reimbursed money covers more than $2,000 in personal expenses accumulated by the HVCB's former president and more than $15,000 spent inappropriately on legal fees.
HVCB was the subject of a stinging audit released by state auditor Marion Higa last July that criticized the bureau's use of state money and its management practices.
Since the auditor's report, the visitors bureau has been investigated or reviewed by the state attorney general's office, an accounting firm and a special master.
The Hawai'i Tourism Authority, the agency that contracts with HVCB for visitor marketing, is spending as much as $500,000 on reviews of the bureau. They include an audit by accounting firm Nishihama & Kishida and an evaluation by Candon Consulting Group LLC, which was selected to conduct a special master's review.
On Thursday, the tourism authority board plans to discuss the findings of the studies in a session closed to the public.
As the reviews were being conducted, HVCB returned $15,844.02 in legal fees to the tourism authority, officials said. The state audit had criticized HVCB's use of state money to pay for legal research on a bill that eventually led to the bureau losing its $4 million annual contract to market the Hawai'i Convention Center.
Another $5,015 in overpayments was reimbursed from a marketing company under contract with the visitors bureau.
HVCB also returned amounts covering personal expenses reimbursed by embattled president Tony Vericella soon after the state audit was released.
Vericella, who resigned amid criticism last July, ended up repaying $670 in personal expenses, $772.64 in travel-related expenses, $600 for family travel and $66.66 for other personal expenses.
"I believe that everything has been reimbursed at this point," said HVCB president John Monahan.
Tourism authority executive director Rex Johnson said he didn't immediately know if additional money will need to be returned, but more questions may arise as the reports by Nishihama & Kishida and special master are finalized.
"It's something that we will continue to have to check on," he said.
Johnson said major recommendations will be made to HVCB to assure the bureau's financial accountability.
Tourism authority board chairman Mike McCartney also said changes at the bureau are needed.
"I think we've gotten very good feedback and assurances from the new leadership at HVCB, so that's very positive," McCartney said.
He said the authority's reviews of the bureau parallel the state audit and in some cases go deeper. McCartney said he hopes the findings and the tourism authority's board actions will "bring closure to the past."
Monahan said yesterday he hopes there will be no significant findings in the reviews, but added, "I won't know until I see it."
"Rest assured that whatever problems are found, HVCB will react and the problems will be corrected," he said.
Monahan, a former Liberty House chief executive, took the over the helm of HVCB from interim president Les Enderton in October, but he is heading a smaller operation.
The bureau laid off about 30 of its 100 employees after losing the state's marketing agreement to promote Hawai'i internationally. That work has gone to four other agencies.
The bureau continues to market the Islands to North America and promote Hawai'i as a location for corporate meetings and sales incentive events.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
