State audit slams The Hawaii Tourism Authority has mismanaged public money, has "unclear and deficient management" and is plagued by "an alarming array of management deficiencies," according to a report issued yesterday by state auditor Marion Higa.
HTA leadership
The Hawaii Tourism Authority
says it will work to improveBy Russ Lynch
rlynch@starbulletin.comRichard Humphreys, the authority's executive director, said the authority accepts the audit's overall findings.
"As a relatively new agency, the HTA recognizes the challenges pointed out by the audit and looks forward to implementing many of the recommendations made by the auditor," Humphreys said in a prepared statement.
The authority administers Hawaii's tourism promotion from funding by the state hotel room tax.
Much of the auditor's criticism had to do with contractual arrangements between the authority and Bob Fishman, who was president and chief executive of the authority for three years.
He resigned when he was called up for military service in the Pentagon after the Sept. 11 terrorist attacks.
Fishman was not an employee but worked under a contract with his own family business, Fishman Enterprises.
"We found suspect the history and justification behind the authority's decision to contract with Fishman Enterprises Inc. for up to $546,000 in compensation (plus certain expenses) to serve as chief executive officer overseeing the staff and operations of the authority for a three-year period," the audit report said.
For example, the contract said Fishman could be terminated for a number of reasons but "poor performance" was not one of them.
"We also found unclear and deficient management and operational leadership," it said.
The audit also said some provisions in more than $135 million of contracts with the Hawaii Visitors and Convention Bureau, which does the marketing for the HTA, are "disadvantageous to the state."
Humphreys said the auditor's recommendations "will make the HTA a better government agency."
Roy Tokujo, HTA board chairman, said it is important to remember that the HTA was created in 1998 for a specific purpose, in a time of economic setbacks, to improve Hawaii's number one industry, tourism.
"We took that task very seriously and moved quickly, diligently and with this singular purpose, focusing our resources and expertise toward achieving this goal. And we were successful," Tokujo said. "Hawaii's tourism reached a banner year in 2000 and was well on its way to another good year in 2001 until the events of Sept. 11."
State of Hawaii
