Chairman Of Hawaii State FCU Ousted After Spending Scandal
HONOLULU – Members of Hawaii’s Hawaii State FCU voted two new faces onto its board of directors and ousted the chairwoman, the center of a recent board scandal over board expenses.
Ousted during the recent elections were board chair Beverly Ing Lee; while Peter Leong, former president of the $1.1 billion credit union, did not seek reelection.
The scandal surrounded reports of the board’s use of Chairman Lee’s travel agency to arrange official trips, frequently at ticket prices higher than what the airlines offered directly. Benefits received by board members included up to seven off-island trips per year and certain reimbursed costs for board spouses and companions, as well as a corporate credit card for each director with a limit of $5,000 per card.
After the disclosures, the directors voted to reduce their benefits.
Three new directors were elected to the seven-person board.
The controversy ignited a member vote of 13,500, about 25% higher than last year’s.