A secret tape recording between the former deputy director of the Department of Hawaiian Home Lands and top state officials is causing a political firestorm as Gov. Neil Abercrombie‘s office scrambles to explain why his chief of staff and attorney general offered to use Native Hawaiian trust funds in what may be a violation of state law.
Michelle Kauhane secretly recorded a meeting she had with Attorney General David Louie and Bruce Coppa, chief of staff. She released the recording Friday in which Coppa offers her $85,000 a year to go to work for the state’s homeless agency. Coppa offers to pay for the position out of DHHL funds.
The allegations of improper behavior by Coppa were part of Kauhane’s testimony earlier this week before a state Senate panel considering the confirmation of Jobie Masagatani as DHHL director. The panel voted to confirm her without asking any questions about Kauhane’s allegations.
So on Friday, Kauhane gave copies of the recording to members of the media.
Now, the governor鈥檚 office is trying to defend what some say could be a serious violation of the Hawaii Constitution when it comes to the handling of Native Hawaiian trust funds. Money that goes to DHHL can’t be used to pay for another position elsewhere in state government, they say.
A spokeswoman for the governor says the offer was not improper because the law allows DHHL employees to help out another agency.
Kauhane served under Masagatani, who was appointed by the governor eight months ago. Masagatani has become a divisive figure among Native Hawaiian homesteaders. Masagatani was approved by the Senate committee this week but still needs to be confirmed by the full Senate.
The conversation between Kauhane, Coppa and Louie begins amicably enough with causal chatter. But within a few minutes, Coppa makes his intentions clear.
“What I would I like to do is I would like to offer you a job, $85,000 and working with Colin Kippen for Hawaiians,” Coppa says. “This would be funded through DHHL.” Kippen in the state’s homeless czar.
Louie goes on to explain that he has been investigating Kauhane for an email that she sent laying out a policy implementing a prohibition on “recertifications” 鈥 a complex procedure in which Native Hawaiians who have already qualified for homesteads under the 50 percent blood quantum rule could be denied.
Louie said she could have been violating state law with the policy.
He suggests that if she leaves DHHL and takes the new job they will back off on the investigation.
“Un-frickin’-believeable!” Kuahane exclaims. The conversation becomes very tense.
She calls the offer “an insult.”
Coppa tries to calm her down, telling Kauhane that he is just trying to solve a situation between her and Masagatani that had grown untenable.
“Obviously, you can’t work with her,” he said. “I’m trying to help you here.”
Coppa says he’ll talk to Masagatani again and try to work something out.
Kauhane was fired a few days later.
DHHL Funds Controversial
Using funds from DHHL, which are supposed to exclusively assist beneficiaries of the Native Hawaiian trust, could be a violation of the 1920 Hawaiian Homes Commission Act.
鈥淚 think it would invite that inquiry,鈥 said Alan Murakami, an attorney for the Native Hawaiian Legal Corporation.
In 1920, Congress passed the act, which set aside 200,000 acres of ceded lands for Native Hawaiian homesteads. When Hawaii became a state in 1959, the federal government conveyed the land to the state, which was required to adopt the Hawaiian Homes Commission Act under the state constitution.
Murakami said that he is more disturbed by what appears to be the governor鈥檚 office making decisions about DHHL funds. Budget decisions must be made by the department and DHHL commissioners, he said, not the governor鈥檚 office.
鈥淲hat is a little troubling is whether or not Bruce (Coppa), or the the governor or the AG can make decisions on how money that would otherwise go to the department can be directed to some other agency,鈥 he said.
Michael Kahikina, a DHHL commissioner, said that the governor鈥檚 office never consulted him about using department funds to pay for Kauhane鈥檚 salary with a different department.
鈥淣obody asked us about that,鈥 he said. 鈥淓verything requires commission approval.鈥
The 20-minute tape provides a rare inside look into operations at the highest levels of state government and also reveals the dysfunction that has gripped DHHL leadership in recent years. Since Abercrombie took office, three of his top appointees to DHHL, including Kauhane, have left.
Coppa declined to answer questions about the tape on Friday. He referred a call from Civil Beat to Louise Kim-McCoy, the governor鈥檚 press secretary, who released a statement to the media.
She said that Hawaiian Home Lands funds can be used to pay for work conducted with other departments.
DHHL funds can be used to pay for DHHL personnel involved in coordinating activities with another department, provided that the activities fall within the purposes of the Hawaiian Homes Commission Act. 聽DHHL funds are regularly used to pay the salaries of personnel from other departments whose services are exclusively furthering the mission of DHHL. 聽Article XII, section 1 of the Hawaii Constitution expressly provides that DHHL funds may be utilized for ”educational, economic, political, social and cultural processes by which the general welfare and conditions of native Hawaiians are thereby improved.聽
But Kauhane said that funding for such a position should come from the state.
鈥淚 understand that the Native Hawaiian population within the homeless population is significant,鈥 said Kauhane. 鈥淚鈥檓 not denying that. But I think that we have a duty to the beneficiaries of the trust that funding a position with the homeless, that is a state obligation. That is not a beneficiary obligation.鈥
The problem with Coppa鈥檚 job offer to Kauhane is illustrated by a recent unanimous decision by the Hawaii Supreme Court which says the state violated the Hawaii Constitution by failing to adequately fund DHHL. The department was defunded under former Gov. Linda Lingle during her term in office to save the state money.
Listen to the Audio Recording:
DISCUSSION: *
GET IN-DEPTH REPORTING ON HAWAII鈥橲 BIGGEST ISSUES
Support Independent, Unbiased News
Civil Beat is a nonprofit, reader-supported newsroom based in 贬补飞补颈驶颈. When you give, your donation is combined with gifts from thousands of your fellow readers, and together you help power the strongest team of investigative journalists in the state.