HONOLULU (KHON2) — Mufi Hannemann resigned Thursday as chair of the Hawaii Tourism Authority (HTA) Board, following ongoing questions raised by a state audit about discounted services at the Hawaii Convention Center involving his non-profits.
The audit, which led to referrals to the state attorney general and the ethics commission, did not allege fraud.
However, concerns were raised regarding $14,000 worth of discounted or comped services, including space and catering, for events organized by the Hawaii Lodging and Tourism Association and Pacific Century Fellows—both of which are led by Hannemann.
At Thursday’s HTA board meeting, Hannemann announced his resignation, explaining that continued questioning from fellow board members about the discounted services left him with no choice.
“The best thing for me to do is step down as chair, and then I’m going to have to think if I want to stay on the board,” he said. “The reputations of those credible, important organizations have been put into question.”
Hannemann further clarified that his organizations were unaware of any outstanding bills that had not been paid.
In response to the audit, changes have already been made to the process for using the convention center’s facilities.
Following Hannemann’s resignation, Todd Apo was voted in as the new chair of the HTA board.