Maui Office of Economic Development director Luana Mahi, whose ties to a pair of nonprofit organizations that won nearly $1.4 million in county grants that were deemed a conflict of interest by the Maui Board of Ethics last month, has been placed on leave with pay pending further investigation of her case. 

What You Need To Know

  • Appointed to the position in January 2023, Mahi was responsible for the solicitation and selection of grant awards. The grants in question were awarded while she held the position
  • An internal audit revealed that under Mahi, OED awarded a grant for the Kaahikolu watershed project to Maui Food Technology Center, for which Mahi served as president until just prior to her appointment to OED. MFTC subsequently contracted with Imina LLC, owned by Mahi’s son Keokoa Mahi, to manage the grant. Luana Mahi’s husband, Kalani Mahi, received direct payments under the grant while working for MFTC
  • Three county grants totaling $66,250 were also awarded to Brilliant Minds Media, for which Luana Mahi served as registered agent until January 2023, when she became the OED director. Keokoa Mahi is president of the nonprofit organization and Kalani Mahi serves as its director
  • Luana Mahi hired an MFTC employee who was with the nonprofit when Mahi was president. That unidentified employee continued to work with MFTC as an administrative assistant even after getting the full-time job at OED

Appointed to the position in January 2023, Mahi was responsible for the solicitation and selection of grant awards. The grants in question were awarded while she held the position.

According to Maui Mayor Richard Bissen’s office, an internal audit of grants conducted by the Maui Finance Department and administered by OED was launched in March after concerns were raised about potential impropriety. The audit revealed that under Mahi, OED awarded a grant for the Kaahikolu watershed project to Maui Food Technology Center, for which Mahi served as president until just prior to her appointment to OED.

MFTC subsequently contracted with Imina LLC, owned by Mahi’s son Keokoa Mahi, to manage the grant. Luana Mahi’s husband Kalani Mahi received direct payments under the grant while working for MFTC.

Three county grants totaling $66,250 were also awarded to Brilliant Minds Media, for which Luana Mahi served as registered agent until January 2023, when she became the OED director. Keokoa Mahi is president of the nonprofit organization and Kalani Mahi serves as its director. The grants were for work on the Maui Wall of Fame at Kahului Airport, the Maui Comic Con and a high school music program.

In addition, Luana Mahi hired an MFTC employee who was with the nonprofit when Mahi was president. That unidentified employee continued to work with MFTC as an administrative assistant even after getting the full-time job at OED.

In an advisory opinion issued last month, the Board of Ethics concluded that Mahi’s personal and familial connections to Imina and Brilliant Media constituted conflicts of oversight and advised that Mahi should “recuse herself from any acts related to the supervision, monitoring, administration, budgeting or signing” of grant or future grants related to the entities.

It also found the unnamed employee to be in conflict for accepting compensation from MFTC related to grants awarded by OED and directed that she recuse herself from work related to the grants and “not continue to receive compensation” from MFTC.

Under the Maui County Code, the contracts can be voided with 60 days of a final determination of a violation of the code of ethics.

While Bissen has not yet indicated whether the county will seek to void the contracts, he did take steps Wednesday to address issues the case has raised.

According to the mayor, unpaid balances for the grants identified in the audit are being held pending further review to ensure compliance with the county code, the county charter, and terms and conditions of the grant agreements.

A memo from the Bissen reaffirming the county’s commitment to ethical standards is being sent to all directors, deputy directors and Office of the Mayor staff.

In addition, the Corporation Counsel is conducting mandatory ethics training review for country directors and deputy directors.

“Safeguarding our County of Maui community, our people, and our values is a critical responsibility that can only be accomplished with public trust and confidence,” Bissen said. “I want to underscore my unwavering commitment to upholding a culture of the highest ethical standards within my administration. We have a zero-tolerance policy for any ethical violations, and I want to assure everyone that all infractions will be met with appropriate consequences.”