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State auditor recommends firing of DBEDT director

Ted Liu denies any wrongdoing

By Richard Borreca

POSTED: 02:04 p.m. HST, Nov 23, 2009

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The state legislative auditor is recommending that Gov. Linda Lingle consider firing Ted Liu, director of the state Department of Business, Economic Development and Tourism, for mismanaging state finances in his department.

A nearly two-year investigation into the state's handling of a federal program to stimulate overseas trade concluded with a 138-page report that says the department poor accounting could lend itself to abuse.

"A lack of effective internal controls has enabled the departments overseas office to spend money with little accountability and created opportunities for fraud and abuse," the report says.

The report has not yet been made public, but Liu this morning held a meeting with members of the news media to deny that he did anything wrong.

Also Lenny Klompus, Lingle's senior assistant for communications, said the governor would not dismiss Liu.

"To attempt to make criminal what may be likes and dislikes -- disagreements or differences in judgment or approach -- to seek to paint everything with a paintbrush of 'violations', to constantly review and re-review old issues for political purposes, is in my view, unfair and unproductive," Liu said.

The state legislative auditor is recommending that Gov. Linda Lingle consider firing Ted Liu, director of the state Department of Business, Economic Development and Tourism, for mismanaging state finances in his department.


A nearly two-year investigation into the state's handling of a federal program to stimulate overseas trade concluded with a 138-page report that says the department poor accounting could lend itself to abuse.

"A lack of effective internal controls has enabled the departments overseas office to spend money with little accountability and created opportunities for fraud and abuse," the report says.

The report has not yet been made public, but Liu this morning held a meeting with members of the news media to deny that he did anything wrong.

Also Lenny Klompus, Lingle's senior assistant for communications, said the governor would not dismiss Liu.

"To attempt to make criminal what may be likes and dislikes -- disagreements or differences in judgment or approach -- to seek to paint everything with a paintbrush of 'violations', to constantly review and re-review old issues for political purposes, is in my view, unfair and unproductive," Liu said.

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