Agribusiness Development Corporation audit reveals the agency has failed entirely in its 27-year existence
The Agribusiness Development Corporation (ADC) is a government agency that controls and manages large agricultural lands and water projects throughout Hawaiʻi. It was originally created in 1994 to help transition Hawaiʻi from sugar and pineapple plantations to a more diversified agribusiness industry.
When the Hawaiʻi Office of the Auditor tried to audit the ADC in 2018, Executive Director James Nakatani said that the ADC was too busy to participate. Yet yesterday's release of their audit report paints a different picture, revealing how leaders of the ADC have failed to accomplish the agency's mission within its 27-year existence.
This isn't the first time the ADC has been under fire. The government agency has been sued for mismanaging land and water resources, violating the Clean Water Act, and a plethora of other things throughout the last few years.
“We found that ADC corporation has done little – if anything – to facilitate the development of agriculture enterprises to fill the economic void created by the demise of the sugar and pineapple industries”
Key Summary of Audit
The auditor noted the following: "We found that ADC corporation has done little – if anything – to facilitate the development of agriculture enterprises to fill the economic void created by the demise of the sugar and pineapple industries"
ADC staff and board members either ignore or remain unaware of the agency's duties. They overall misunderstand ADC's purpose
The ADC has no agribusiness plan for defining and establishing goals, objectives, policies, and priority guidelines. An excerpt from the audit notes the following: “The executive director thinks such a plan is unnecessary: ‘I have everything up here,’ he said, pointing to his head”
The ADC blatantly mismanage their various land and water holdings
ADCʻs financial records were not auditable because their record-keeping and filing systems are in disarray. Important documents like board approvals, license agreements, and proof of insurance were missing. Basic land management records like inventories of land holdings and tenant listings were non-existent
It is estimated that the agency has received over a billion dollars in taxpayer funds, perhaps even more, yet was not able to fully account for its expenditures
Their vacant properties are home to criminal activity, exposing surrounding communities to unnecessary risk
ADC's Board of Directors has failed to provide the corporation with guidance and oversight. This allows the ADC to omit statutory requirements and James Nakatani to operate with little to no accountability
Land Managed by ADC
Hawaiʻi deserves better. If we want to increase our food self-sufficiency and grow our agricultural economy, we need vision, competency and sound leadership. We can utilize Hawaiʻi’s prime agricultural lands to feed our local community. However, it’s hard to imagine this vision coming to fruition with the current ADC regime. In the words of the ADC executive director, “no one here [at the ADC] has a deep agricultural background.”
Join us this legislative session in urging our lawmakers to do better. Together, we can work towards a more sustainable future.
Stay tuned for updates on how you can engage by following us online at @hiprogressiveaction on Instagram and Facebook and @hawaiiaction on Twitter