BOE: Kuali‘i has a conflict of interest with OPA

LIHU‘E — After a lengthy discussion, the county Board of Ethics on Friday unanimously found Kaua‘i County Councilmember KipuKai Kuali‘i does have a conflict of interest with regards to matters on the council’s agenda related to the Office of Prosecuting Attorney, Victims of Crime Act funding and appropriations to the Office of Economic Development.

Besides serving on the county council, Kuali‘i works for the YWCA as director of operations. The nonprofit receives annual federal funding from VOCA through OPA, and also some funding from OED.

The request for the board’s advisory opinion came from Kuali‘i himself. Council Vice Chair JoAnn Yukimura had made a request earlier this year to the board to look into Kuali‘i’s potential conflict of interest, and then dropped it following Kuali‘i’s assurance he would ask the board for an opinion after the budget review sessions for Fiscal Year 2013, according to Kuali‘i.

In a letter dated July 25 requesting the board’s opinion, Kuali‘i said once council approval is given and money is allocated to OED, OPA or any other county agency, he has no control or influence on how the money is spent. Therefore, he does not believe he has a conflict of interest with regards to matters on the council’s agenda related to OPA, VOCA funding or appropriation to OED, he states in the letter.

“Contrary to what (YWCA Executive Director Renae) Hamilton says, or Councilmember Kuali‘i, it’s my belief that any action that the council takes to increase or to allow going for a VOCA grant or whatever, some of that interest does flow to the YWCA,” board member Mark Hubbard said. “Even though Councilmember Kuali‘i does not receive that pay, as an employee of YWCA there is a benefit.”

Hubbard said the benefit is indirect, and normally he is not “too excited about indirect stuff,” but in this case he feels there is a conflict.

Board member Paul Weil said the perception that Kuali‘i is in a management-type position at YWCA gives the perception of a public conflict.

“We should protect the council member and the agency against negative publicity and perceptions,” Weil said. Despite stating in his letter that he doesn’t believe there was a conflict of interest in council matters related to OPA and VOCA funding, Kuali‘i told the board he has been recusing himself when those items come up on the council’s agenda.

“The only reason I’m here is because a fellow councilmember put the complaint forward,” said Kuali‘i.

He later explained this statement at the board meeting by saying Yukimura wanted him to recuse himself from all budgetary decisions related to OPA. He said he has participated in those decisions, but has recused himself from line items related to VOCA grants and OED appropriations.

“I just want to be clear that this whole request … arose because Councilmember Kuali‘i did not recuse himself, and did not make a request for a decision before he voted on many issues dealing with the Prosecuting Attorney’s Office, and I have personally asked him to recuse himself,” Yukimura said at the meeting.

Yukimura said that a previous testimony by Kapa‘a resident Glenn Mickens, in which he said Kuali‘i would do the very best for YWCA, is the very reason there might be a conflict of interest.

“When there might be the interest of the YWCA, for example, not alienating the prosecuting attorney because (YWCA) gets money from them, or not talking about the VOCA grants because of the dismissal of a VOCA counselor, the money for that might go to the YWCA, there is a potential for a conflict of interest,” she said.

Hamilton said the YWCA has always received additional funding from OPA each year. At the end of each fiscal year, Hamilton said, there is often some leftover funding, so the potential for YWCA receiving extra funding is not tied to council decisions.

Deputy County Prosecutor Jake Delaplane said the VOCA funding that goes to YWCA is “severely restricted,” and can only be used for certain things. Additionally, Kuali‘i has no involvement with processing VOCA funds, directly or indirectly, he said.

Kuali‘i has not participated in any vote related to VOCA funding to YWCA.

Later on Friday afternoon, he issued a written statement saying that “out of an abundance of caution,” he had asked the Board of Ethics whether there is conflict of interest if he participates in council agenda items related to YWCA and budget matters involving OPA’s VOCA program. Pending the board’s opinion, he said he has declared a conflict of interest may exist and has refrained from voting on related matters at council meetings dated May 18, 2011, July 20, 2011 and May 9, 2012.

“Today, the Board of Ethics issued its advisory opinion stating that a conflict does exist in both instances and I thank the board for its guidance,” Kuali‘i wrote in his statement Friday. “I have refrained from voting on such matters and will continue to do so.”