OHA trustee Apo fined $25K for ethics breach

The state Ethics Commission has fined an Office of Hawaiian Affairs trustee $25,000 for violating ethics laws by using his state office, staff and resources for his own business purposes on “innumerable occasions,” including on a critical vote and subsequent work associated with the controversial Thirty Meter Telescope.

After an investigation into OHA Trustee Peter Apo’s actions from 2014 through 2016, “the Commission believes that Trustee Apo’s use of state resources to support his private business likely began prior to 2014,” the Hawaii State Ethics Commission said Wednesday in a document concluding its investigation.

The commission found Apo, who owns The Peter Apo Co., likely violated the Fair Treatment Law and the Conflicts of Interests Law — using his position to enrich himself by swaying OHA’s board of trustees to amend its position on the Thirty Meter Telescope (TMT) Observatory.

On April 30, 2015, OHA’s board of trustees met to discuss its position on TMT and Mauna Kea. OHA trustee Hulu Lindsey moved to rescind the board’s support of the TMT project and oppose selection of Mauna Kea as the site for it.

Apo, however, moved to amend the motion, “to state only that the Board of Trustees rescinds its support of the project but not that it opposed the selection of Mauna Kea as the site.” The amended motion passed, and Apo recommended cultural training for the TMT Observatory Organization.

Then on July 2, 2015, Apo emailed the TMT organization chairman and solicited private work for his company, the commission found.

The Peter Apo Co. is entwined with two companies — DTL and WCIT Architects — doing work for OHA. The two are part of a fourth company, Kuhikuhi Puuone Collaborative, that has a contract with OHA to develop a master plan for OHA’s Kakaako Makai property.

Apo’s company provided consultant services between Jan. 1, 2014, and June 1, 2016, to DTL, “a company that provides culturally based strategic planning, community outreach and branding,” which is affiliated with WCIT.

The commission found Apo violated the Fair Treatment Law, which prohibits state employees from using state time, email, offices or other resources for private business work. It also prohibits an employee from engaging in a substantial financial transaction with a subordinate.

He frequently used his trustee aides to do work for his company. One such aide was paid by the company.

Apo forwarded OHA emails to his private email account, and when he would respond with his private email address, it would contain contact information for his private company.

OHA Chairwoman Colette Machado said in a written statement: “Trustee Apo did the right thing by cooperating fully with the Ethics Commission’s inquiry and took responsibility for his conduct.

“The resolution, with no further action, gives Trustee Apo the opportunity to learn from his errors and to move forward.”

Although the commission said there were “numerous and repeated likely violations of the State Ethics Code,” it did not issue a charge against Apo.

The commission wrote it “believes it is reasonable, fair and in the public interest to resolve this investigation” by issuing a resolution of the investigation and requiring Apo to pay an administrative penalty to the state.