Audit flogs
liquor panel

Top commission officials refuse
a call for their resignations

The city auditor has issued a stinging report accusing the embattled Honolulu Liquor Commission of "inadequate" oversight and management of its operations, leading to calls for top managers to be fired.

John Carroll: Chief investigator says obstacles include need to fill 20 vacancies

"The Honolulu Liquor Commission is unaccountable, it is mismanaged and it is out of control," said City Councilman Charles Djou, whose district has the largest number of liquor licensees. "The first step for reform is to fire its senior managers."

But Liquor Control Administrator Wally Weatherwax and chief investigator John Carroll said they will not resign because they are part of the solution in reforming the agency.

City Auditor Les Tanaka said the administration of the Liquor Commission has failed to effectively address operational issues, leading to poor staff morale and "concerns that the commission is unable to fulfill its responsibilities."

Tanaka's review of the commission's management comes when the agency has been rocked by a series of scandals:

Wally Weatherwax: Commission administrator insists he is part of the solution

There are also structural obstacles that get in the way, the audit noted, suggesting, for example, a Charter amendment to exclude the administrator's position from civil service, which is the case in Maui and Hawaii counties.

"The theme of the report was that the senior managers allowed a culture of corruption to exist over at the liquor commission," said Djou. "When things go wrong, these managers are held accountable and can be dismissed."

Commissioners have the power to appoint and remove the administrator, but the administrator is responsible for all other staffing decisions.

"Reform is impossible so long as those two men are at the Honolulu Liquor Commission," Djou said.

"Let's be clear," Weatherwax said. "This audit does not say that there's any gross negligence or criminal malfeasance on anyone's part."

Weatherwax and Carroll said they are making progress but have obstacles to overcome, including trying to fill 20 vacant positions.

"It's a tough job," said Weatherwax, who has been the agency administrator since 1998. "We're working hard to gain the public trust."

"I have no intention of stepping down. I believe that there's lots of work to be done, and we're intending to do that," he said.

Carroll added, "We have a plan set up, and we're going to go forward as long as we're sitting here."

Mayor Mufi Hannemann said, "The commission has my full support in taking whatever actions are necessary to address the concerns raised in the audit and to ensure the highest degree of public confidence in the commission and its staff."