David C. Farmer, Trustee vs. Harmon

David C. Farmer, Successor-Trustee vs. Harmon

(Formerly Woo vs. Harmon & Nicholson vs. Harmon)

U.S. District Court For the District of Hawaii

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DEFENDANT’S WITNESS

REX JOHNSON

Former chief executive officer of the Hawaii Tourism authority; former Director, State Department of Transportation, under Governor John Waihee; former Executive Director for the Nature Conservancy of Hawaii.

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August 2, 2008

Hawaii tourism chief's X-rated
e-mails may cost him his job

Adult-oriented material discovered in
Johnson's agency e-mail account

By DERRICK DePLEDGE & ROBBIE DINGEMAN, Advertiser

Rex Johnson, the president and chief executive officer of the Hawai'i Tourism Authority, is being urged by the authority's board of directors to resign after adult-oriented material was found in his government e-mail account.

The board discussed the matter Tuesday in executive session and two board members later approached Johnson about his possible resignation. The board's administrative standing committee has scheduled an executive session regarding Johnson on Wednesday afternoon.

"It was a huge mistake," Johnson said in an interview yesterday. "I have apologized for my actions to the board."

Johnson acknowledged receiving adult-oriented e-mails on his government account and forwarding the e-mails to friends, whom he described as "fishing and baseball buddies" who often exchange jokes to keep in touch. He said the e-mails were not sent to business contacts.

Johnson said he understands his actions were an unauthorized use of state computers and contrary to state personnel guidelines against accessing or downloading sexually explicit material. But he said he does not believe it should cost him his job.

"I don't believe so," Johnson said. "But others may feel that it should."

Kelvin Bloom the chairman of the authority's board of directors, said he has been instructed by legal counsel not to discuss the matter because it involves personnel.

"The board has the full range of options from dismissal to 'get back to work,' " Johnson said.

Several state lawmakers, including state House Speaker Calvin Say, D-20th (St. Louis Heights, Palolo Valley, Wilhelmina Rise), state Senate President Colleen Hanabusa, D-21st (Nanakuli, Makaha), and state Senate Vice President Donna Mercado Kim, D-14th (Halawa, Moanalua, Kamehameha Heights), have given their support to Johnson even though they disapprove of his actions.

Board meeting urged

Mercado Kim said through a spokesman that she personally contacted five board members, including Bloom, and asked them to hold a meeting of the full board where Johnson could explain himself. At least two other senators either personally or had their staff contact board members on Johnson's behalf.

While embarrassing, lawmakers said, they question whether Johnson's actions warrant his resignation or firing given his experience and the challenges facing the tourism industry during the economic downturn.

"I believe that he is definitely entitled to due process," Hanabusa said. "I believe that he should have this discussion with his full board.

"Yes, it showed bad judgment, but the question becomes whether this is something that whoever it is that's pressuring him to resign — whether it's the whole board or bits of the board or whatever it may come out to be — whether this is something that warrants that decision."

Tourism advocate

Say said Johnson has been an effective advocate for tourism at the Legislature. The speaker said the board should consider allowing Johnson to continue, given the slump in tourism. "At this point, step back, breathe in a little," he said.

State Rep. Ryan Yamane, D-37th (Waipahu, Mililani), the chairman of the House Tourism and Culture Committee, said he questions whether changing leadership now is the right move but, like Say and others, said he is not trying to unduly influence the board.

"As chair, I would like to know how they plan to respond to or deal with the loss of somebody like Mr. Johnson as the head of HTA. You cannot, during this time in our industry, you can't just remove somebody and think that putting somebody else in their place is going to start them off where they left off.

"There's a learning curve."

Ongoing probe

Johnson's e-mails were discovered by the state auditor as part of an ongoing investigation of the state Department of Business, Economic Development and Tourism and an audit of the HTA's major contractors.

The tourism authority is under the DBEDT umbrella, but is governed by an appointed board with 12 voting members and four nonvoting members; Gov. Linda Lingle's tourism liaison and the directors of the state Department of Transportation, the state Department of Land and Natural Resources and the State Foundation on Culture and the Arts.

The e-mails, which contain X-rated movie clips, slideshows and photographs of adult nudity, fall outside the scope of the auditor's investigations but she reported it in late June to the Lingle administration and House and Senate leaders.

Johnson, who earns $240,000 a year, is evaluated annually by the board.

Johnson is known as a risk-taker and for his candor and he has sometimes clashed with those who prefer rosy optimism about the state's dominant private industry.

Lingle's appointment of Marsha Wienert as tourism liaison was widely seen in political and tourism circles as a way for the governor to have a larger voice on tourism, since Johnson reports to the board, not the governor.

Waihee cabinet member

Johnson previously served as the director of the state Department of Transportation under then-Gov. John Waihee and also as a leader with the Hawai'i Community Development Authority.

Just before he took over at the tourism authority in 2002, he was director of facilities at the Research Corporation of the University of Hawai'i, which was responsible for the planning and building of the university's new medical school. Previously, he had been executive director for the Nature Conservancy of Hawai'i.

In 2003, another tourism leader was criticized for personal conduct. Tony Vericella, then-president of the Hawai'i Visitors and Convention Bureau, apologized after the state auditor found that he had spent $670 in taxpayer money to pay for parking and speeding tickets, in-room hotel movies and other personal expenses.

Vericella acknowledged that the spending was improper and paid the money back. He resigned shortly after the audit.

Hawaii tourism chief's X-rated e-mails may cost him his job ...

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November 5, 2008

Johnson to receive $291,000

Settlement follows his forced resignation
as chief of tourism board

By Curtis Lum. Advertiser Staff Writer

Former Hawai'i Tourism Authority chief Rex Johnson will receive more than $291,000 in severance and vacation pay as the result of a negotiated settlement with the HTA board.

The board yesterday released the terms of an amended employment agreement with Johnson, who was forced to resign on Oct. 8 after it was discovered that he had used his state computer to forward pornographic, racist and sexist e-mails.

Johnson had 10 months remaining on his contract and board members had to decide how much severance pay he would receive.

The HTA board said it would honor the terms of the contract and pay Johnson the balance owed to him through Aug. 20, 2009. He will receive nearly $10,000 a week, or $208,181, plus 722 hours of unused vacation, which will be paid at a rate of $115.38 an hour, or $83,304.

Johnson's original contract had called for him not to be paid for unused vacation if he failed to give a 30-day notice. That clause was removed in the amended agreement.

The turmoil surrounding the agency comes as the tourism industry is experiencing double-digit declines in visitor arrivals and spending from a year ago. Last week, the state reported September visitor arrivals plunged 19.5 percent in September from the same month a year earlier. And on Monday an industry consulting group reported hotel occupancy in September was the lowest since the months following the Sept. 11 terrorist attacks.

Kelvin Bloom, HTA chairman, said he hopes the agency can now move forward with its mission to promote the state to the world.

"Recognizing the need for HTA to focus on more significant tourism issues without further distraction, the board has concluded this matter as expeditiously as possible," Bloom said in a statement.

In August, Johnson survived an attempt to oust him over the pornographic e-mail, but the HTA board cut his annual pay by $40,000 to $200,000 and shortened his four-year contract to one year.

But when the existence of the racist and sexist jokes was uncovered, Johnson and the HTA board faced harsh criticism from civic groups, community leaders and Gov. Linda Lingle, who demanded that Johnson resign or be fired.

Following hours of closed-door meetings, the board last month accepted Johnson's resignation. The former director of the Department of Transportation in the Waihee administration had headed the HTA since 2002.

A day after his resignation, the HTA named its chief administrative officer, Lloyd Unebasami, as interim president and chief executive officer. The search for a permanent president began immediately and the next step was to determine Johnson's severance pay.

www.kycbs.net/Nature-Conservancy-Hawaii.htm

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News Releases

12-14-2005

Rex Johnson appointed to U.S. Travel and Tourism Board

HONOLULU - United States Secretary of Commerce Carlos M. Gutierrez, has announced the appointment of Rex Johnson, President and Chief Executive Officer of the Hawaii Tourism Authority (HTA), to serve on the U.S. Travel and Tourism Advisory (USTTA) Board.

The USTTA Board was created in 2003 to advise the Secretary of Commerce on the design, development and implementation of an international advertising and promotional campaign to encourage individuals to travel to the United States. In 2005, the Board's mission was expanded to include advising the Secretary on national tourism strategy, government policies and programs that affect the United States travel and tourism industry. The USTTA Board also provides a forum for discussing and proposing solutions to industry-related problems.

Mr. Johnson will be one of 15 travel and tourism industry executives from across the nation to serve on the USTTA Board. His term will expire on September 21, 2007. USTTA board members include:

* James Rasulo, Chairman of Walt Disney Parks and Resorts (Chairman)
* Marilyn Carlson Nelson, CEO and Chairman of Carlson Companies (Vice-Chair)
* Charles A. Gargano, CEO and Chairman of Empire State Development
* Noel Irwin Hentschel, CEO and Chairman of American Tours International
* Chris von Imhof, Board Member of the Anchorage Convention and Visitors Bureau
* Jeremy Jacobs, Chairman and CEO of the Delaware North Company
* Lawrence Katz, President and CEO of Dot's Diner Restaurant Chain
* Jonathan Linen, Vice Chairman of American Express
* J.W. Marriot, Jr., CEO of Marriot International, Inc.
* Manny Stamatakis, Chairman of the Greater Philadelphia Tourism Marketing Corporation
* Robert Taubman, Chairman and CEO of the Taubman Company
* Andrew Taylor, Chairman and CEO of Enterprise Rent-A-Car
* Glenn Tilton, Chairman and CEO of United Airlines
* Jonathan M. Tisch, Chairman and CEO of Loews Hotels

The Hawaii Tourism Authority was created in 1998 to ensure a successful visitor industry well into the future. Its mission is to strategically manage the growth of Hawaii's visitor industry in a manner consistent with its economic goal, cultural values, preservation of natural resources and community interests. For more information, please visit www.hawaii.gov/tourism .

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Rex Johnson will be asked to testify regarding his business, professional, political and personal relationships with John Waihee, David C. Farmer, Steven Guttman, Summit Communications, Grant Johnston, Sandwich Isles Communications, Al Hee, Robert Kihune, Gilbert Tam, Faye Kurren, Haunani Apoliona, OHA, Kamehameha Schools, Calvin Say, Colleen Hanabusa, Richard Wong, Jeff Stone, Eric Shinseki, Kazu Hiramoto, Larry Mehau, Linda Lingle, and others to be named upon discovery.

Related references:

http://www.kycbs.net/Confessions.htm

http://www.kycbs.net/NatureConservancy.htm

http://www.kycbs.net/Nature-Conservancy-Hawaii.htm

http://www.kycbs.net/JUSTICE.htm

http://www.kycbs.net/Peregrine-Fund.htm

http://www.kycbs.net/Peregrine-Gallery.htm

http://www.kycbs.net/Transportation.htm

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