The Hawaiʻi Tourism Authority (HTA) is embroiled in a lawsuit filed by Isaac Choy, a former vice president of finance, who claims that his suspension was a retaliatory action for whistleblowing on procurement violations and mismanagement within the agency.
Choy, who has served as HTA’s vice president of finance and acting chief administrative officer, was suspended without pay after allegations surfaced that he made derogatory remarks about Native Hawaiians during contract negotiations. Choy is cited as saying he ‘could have said that’ in an interview with Hawaiʻi News Now, acknowledging that his comments may have crossed a line.
The incident that led to his suspension involved accusations of creating a hostile work environment, with specific reference to him allegedly using the term “dumb Hawaiian.” In a letter from HTA acting chief executive Caroline Anderson, it was stated that Choy had made derogatory comments regarding the capabilities of Native Hawaiians in leadership positions.
Choy vehemently denies these allegations, claiming in his lawsuit that his suspension was a pretext to silence him after he reported serious violations of state laws by HTA officials, including those committed by Anderson herself.
The lawsuit underscores a troubling period for HTA, which has been grappling with declining authority and funding. Once receiving $63 million annually to market Hawaiʻi and manage the impacts of tourism, the agency is now struggling to maintain its efficiency and effectiveness amid mounting criticism from residents dissatisfied with increasing tourist influx.
With lawmakers cutting direct funding from the hotel tax to HTA, the agency has sought to transition from marketing to destination management, striving to balance tourism benefits with community needs. However, a recent report by the Hawaiʻi State Auditor has revealed that these changes have yielded little to no measurable results.
According to the audit, HTA’s efforts toward destination management have primarily involved reshuffling existing programs without substantive changes or improvements in policies. The audit expressed concern over HTA’s transparency and accountability, particularly regarding its performance metrics in relation to its strategic goals.
Choy’s lawsuit also raises questions regarding questionable expenditures that he claims to have uncovered. Accusations include improper contract extensions and oversight failures connected to notable figures within the agency. A significant incident mentioned in the lawsuit involves former board chair Mufi Hannemann and his use of the Hawaiʻi Convention Center for events associated with nonprofits he operates.
Though state auditor Les Kondo ruled that no fraud occurred, his investigation stemmed from Choy’s report to the HTA board that highlighted a potential misuse of HTA resources. Hannemann has since resigned from his position as chair but remains on the HTA board.
Beyond the allegation against Hannemann, Choy’s complaints included failures to adhere to state procurement laws, such as verbal extension of contracts without proper processes, which were attributed to Anderson.
Choy’s claims further note that HTA incurred $780,000 in interest charges due to late payments, and that substantial sums were spent on marketing initiatives without appropriate contracts being established, amounting to around $1.5 million.
The lawsuit points out that such procurement violations jeopardize HTA’s capability to secure state contracts, citing instances of untrained personnel involved in vulnerable procurement operations. The whistleblower protection law in Hawaiʻi is designed to safeguard public employees from retaliation for reporting acts of misconduct, which Choy argues was violated through his suspension and imminent harm to his professional future.
In his interview, Choy criticized what he termed as the agency’s wasteful spending practices, emphasizing the need for accountability in dealing with taxpayer funds. According to him, the agency’s operations and procurement practices are not only flawed but are also leading to significant financial losses amounting to millions each year.
As this lawsuit unfolds, the implications for HTA could be far-reaching, particularly in light of the agency’s ongoing struggle to maintain its authority and effectiveness within a highly critical public and legislative environment.
The controversy surrounding Choy’s suspension and allegations against HTA leadership highlight deeper systemic issues within the agency, prompting questions about its governance, financial oversight, and overall mission in promoting sustainable tourism in Hawaiʻi.
With the future of HTA increasingly under scrutiny, this case may serve as a pivotal moment in reshaping its operations and reinforcing the vital role of transparency and accountability in public service.
image source from：https://www.civilbeat.org/2025/06/top-hawai%CA%BBi-tourism-official-claims-retaliation-for-reporting-mismanagement/
