Hawaii County Council members are taking a tougher stance against abuse of county purchasing cards, known as pCards, following a high-profile lapse by Mayor Billy Kenoi.
Hawaii County Council members are taking a tougher stance against abuse of county purchasing cards, known as pCards, following a high-profile lapse by Mayor Billy Kenoi.
The council Finance Committee on Tuesday unanimously advanced Bill 78 after amending it to add stricter controls and more transparency to county spending on travel and gifts. It now goes to future council meetings for two readings and votes.
The original bill, by Puna Councilman Greggor Ilagan, added the language that “no exception involving public funds shall be authorized without a public purpose” to the section of law stating the mayor or council chairman “may approve exceptions with good cause to any provision relating to travel and expenses.”
An amendment by Kohala Councilwoman Margaret Wille added new requirements that a written request for authorization must be made, along with documentation establishing the public purpose and approval made in writing. Authorization for the purchase of alcoholic beverages will not be allowed unless authorized by an approved exception. In addition, purchases for gifts must be $100 or less, unless authorized by an approved exception.
A memorandum explaining the reasons for the exceptional expenditure along with copies of the written request for authorization, documentation and the signed authorization must be submitted to the Finance Department director within seven days of the expenditure. The Finance director must maintain a log of all travel expenditures authorized through an exception and must make the log available for public inspection, under the amendments.
“It adds a little more accountability and a little more transparency,” Wille said.
Council members generally liked the changes, but Hilo Councilman Aaron Chung said the language still needs some work.
“I’m OK moving this forward, but it needs to be tweaked,” Chung said.
Puna Councilman Dan Paleka worried the requirements for approval in writing for gifts could be troublesome for last-minute purchases caused by scheduling changes when visiting other officials.
“I’m not the type to go empty-handed,” Paleka said.
If necessary, he’ll just pay for gifts out of his own pocket, he said.
“For us as a council member, we’ve got to do what we think is right,” he added.
The changes come in the midst of an investigation by the state attorney general, following Big Island newspapers reporting Kenoi used his pCard at Honolulu hostess bars and to buy personal items including an expensive surfboard and bicycle. Kenoi generally paid the money back, but $9,559 in reimbursements didn’t occur until months later, after the newspapers broke the story.
An audit by Legislative Auditor Bonnie Nims found several problems, primarily in the Mayor’s Office and the Department of Liquor Control, with cards being used for personal purchases and purchases, such as for alcohol, against county policies.
Email Nancy Cook Lauer at ncook-lauer@westhawaiitoday.com.