Thursday, February 3, 2011

Article Exposes Concerns About Excessive Benefits and Conflicts of Interest at Hawaii State FCU

An article appearing in the January 30, 2011 Honolulu Star Advertiser reports on potential conflicts of interest and excessive benefits to the board members of Hawaii State Federal Credit Union, the second largest credit union in the state.

The article cites as examples of excessive benefits that the credit union pays for up to seven off-island trips annually for each board member with up to four trips to the mainland, covers travel expenses for spouses, and reimburses board members for health insurance costs.

Frank Diekmann, editor and publisher of Credit Union Journal, is quoted as saying that these benefits are pretty much in excess of what credit union boards receive regardless of the size of the credit union.

Additionally, according to documents obtained by the newspaper, regulators raised red flags with respect to "the use of a travel agency owned by the board chairwoman to book official trips, frequently at higher prices than what the airlines offered directly, and accepting free rooms at a Waikiki hotel where the annual membership meetings were held."

To read the article, click here.

Read editorial Uphold credit union trust

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