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The Department of Hawaiian Home Lands is falling down on its responsibilities to administer homesteads to Native Hawaiians, .

The assessment says the commission fails to hold lessees accountable for delinquent loans, is not focusing enough on the thousands of Hawaiians who remain on the waiting list for plots and that rising loan obligations and delinquencies pose a solvency risk. 

According to the audit: 

The commission has not fulfilled its fiduciary responsibilities to prudently mitigate overall loan risk and impartially administer the Hawaiian Homes Commission Act (HHCA) on behalf of all beneficiaries, having instead favored one class of beneficiaries— lessees—over those on a growing waitlist for leases and an unknown number of people who have yet to apply. As of June 30, 2011, there were about 9,200 beneficiary leases and nearly 26,200 applicants seeking leases.

Read the full audit .

(Photo: DHHL)

— Sophie Cocke