Hannemann resigns as HTA chair amid allegations of freebies

Mufi Hannemann resigned as chairperson of the Hawai’i Tourism Authority Board today saying he wants to end distractions after allegations surfaced during discussion of a state financial audit that two of his nonprofits received Hawai’i Convention Center freebies.

Allegations emerged Tuesday during a special HTA board meeting to discuss the findings of a financial audit of HTA’s fiscal year 2024 by Accuity LLP, a firm contracted by the State Auditor’s Office. Accuity’s audit determined that there were procedural deficiencies that allowed for free food and rental income for events at the Convention Center, but did not issue a finding of fraud.

The audit did not name the events in question but they were the Hawai‘i Lodging & Tourism Association’s public safety conference, which was held at the Convention Center on Dec. 6, 2023, and a meeting of the Pacific Century Fellows, which was held May 15 in an HTA boardroom at the convention center.

Hannemann, the former Honolulu mayor who is also the longtime president and CEO of HLTA and the founder of the Pacific Century Fellows, told the board today, “The best thing for me to do is to step down as chair, and then I will have to think whether I want to stay on the board, because the reputations of those incredible, important organizations have been put into question.”

Hannemann told the board that he was only today presented with a bill from the Convention Center for $14,000 in relation to the two events. Convention Center General Manager Teri Orton told the HTA board that Hannemann’s organizations were not billed sooner for the events because they were reserved as HTA space.

The forms reserving the events as HTA space were unsigned. Now, the HTA board must try to determine who approved the events as HTA space and whether that approval was out of character or the result of undue influence.

Orton has provided a list to the state auditor of about $200,000 worth of discounted and comped events that pertained to more organizations than just those under Hannemann’s purview.

State Department of Business, Economic, Development & Tourism director James Kunane Tokioka told the Honolulu Star-Advertiser that once the state audit brought up the issue, the policy was tightened to require the signature of the HTA president and CEO and the HTA vice president of finance before any comps for HTA space are approved.

The board did not take any action on the allegations about comps during the HTA special board meeting, which was continued until today. At today’s meeting, the HTA board discussed the issue for about an hour and a half, with many expressing concerns about public perception and trust. Ultimately, the board voted to move further discussion to the next Administrative & Audit Standing Committee Meeting. The committee is expected to make a recommendation to the board later.

John Cole, state deputy attorney general, told the Star-Advertiser that the matter had been referred to the AG’s office, but they determined that there was not enough information to open an investigation. The State Ethics Commission told the Star-Advertiser that state ethics investigations are confidential and it could not comment as to whether or not an investigation had been opened.

After Hannemann’s resignation, the board elected former Honolulu City Council chairperson Todd Apo to serve as its new chair. Gov. Josh Green appointed Apo to serve on the board in October.

Apo is CEO of ‘Iole, a nonprofit focused on sustainability and resilience. He has also served in senior roles at the Hawai’i Community Foundation and Howard Hughes Holdings Inc.