Thanks but no thanks.
The board tasked with building Oahu’s $9.2 billion rail project voted Thursday to tell the Honolulu City Council to ask off on initiating a forensic audit of
the agency until after a federal investigation into the project is settled.
On Wednesday the Council Budget Committee voted to delay approval of Resolution 19-29 Opens in a new tab, calling for the
independent forensic audit, to give the HART board time to weigh in on the issue.
HART board members did just that Thursday, saying in their own resolution Opens in a new tab they want the Council to hold off on one “until such time as the U.S. District Court matters are resolved.”
In recent weeks HART has been hit with three federal grand jury subpoenas seeking a slew of documents Opens in a new tab from the agency involving its construction contracts, relocation funds and closed-session minutes of its board’s meetings. Presumably, attorneys from the U.S. Department of Justice are investigating wrongdoing tied to the $9.2 billion rail line, the most expensive public works project in
Hawaii history. When federal transit officials first agreed to provide $1.55 billion for the project, the
cost was estimated to be $5.26 billion.
Board members told Councilwoman Heidi Tsuneyoshi, who introduced the Council resolution, that some of her concerns may be addressed by the federal investigation.
But Tsuneyoshi said it’s important that she and her colleagues have the information available “to make sure that internal controls are in place so that we can make better decisions moving forward.” She noted the Council has the final say on the budget.
A lot of the information collected by federal investigators might never be made available to city officials or the public without a forensic audit, she said.
Board members assured Tsuneyoshi that they shared her desire to learn more.
“I don’t think anybody who’s a taxpayer, as we all are, would disagree that we want to make sure our money has been well and properly spent,” board member Hoyt Zia said.
Nonetheless, the primary purpose of the board is “to make sure the project goes forward and gets done,” he said. Zia, as did other board members, said they worry a forensic audit would take away from that purpose and result in delays and more costs.
Tsuneyoshi said if HART staff already is compiling much of the same information for the subpoena, her request shouldn’t be overtaxing.
“In my opinion … it is a small investment in time and money and resources for us to get a clear picture to save a lot of time and resources moving forward,” she said. “With all due respect, we are going to be paying for those decisions made in the past for many generations to come.”
Board member Ember Shinn said she and her
colleagues have themselves asked questions about the change orders due largely to delays caused by decisions made when the project was in its infancy.
“There’s always the question of, Why did it happen?” Shinn said. “Whose fault is it? Was there any evidence of misconduct, or was it just bad decisions or not knowing what the heck we were doing?”
Tsuneyoshi’s proposal initially called for the audit to be paid for by HART.
But the committee, before deciding to hold the resolution, voted to change the language so that the money would come from general-
fund coffers.
Council Budget Chairman Joey Manahan asked for the delay in moving out the resolution, stating his preference was to hear from the HART board for its position first. He added that regardless of the resolution’s fate, “I’m sure there’ll be money put into the budget for this purpose.”
Several people testified
in favor of a forensic audit, including construction engineer and manager Lance Luke, who showed Council members the copy of his book “Everything the city wants you to know about the rail.” The inside of the book is nearly blank.
“The city doesn’t want the general public to basically know what’s going on with the rail because
HART is not forthcoming with all in the information,” Luke said. While he supports the project, “I fully support a forensic audit so the city has full accountability in all aspects of the project.”
Tsuneyoshi agreed. “We’ve waited for over
10 years for answers to fill this book,” she said. “I
don’t think we can pause any further.”
In 2016 HART board member John Henry Felix attempted to initiate a forensic audit through the board, but he failed to gather the support of one even of his colleagues, which was required for there to be an up-and-down vote on the issue.
The HART board, at its meeting Thursday, also voted to give final approval to a $160 million payout to Ansaldo Honolulu JV to
settle delay claims brought by the company.
