Hawaii State Officials Get Fined for Flight Upgrades
The head of the Hawaii Tourism Authority and three former and current agency officials have been fined more than $12,000 for accepting flight upgrades.
The Hawaii State Ethics Commission yesterday found that CEO George Szigeti, COO Randy Baldemor; Jadie Goo, director of marketing for China, Taiwan, Hong Kong and Southeast Asia; and David Uchiyama, former vice president of brand management, solicited or accepted flight upgrades from Japan Airlines, China Airlines, Air China and China Southern Airlines while on trips for state business in 2015 and 2016, without informing the state that they did so. All four were fined a total of over $12,000.
By law, state officials must travel in coach for work trips. If they accept upgrades, they must disclose them and treat them as gifts. The upgrades were each valued at more than $200.
"State officials can't use their positions to get perks or benefits that aren't available generally to others," Daniel Gluck, executive director of the ethics commission, told Hawaii News Now. "The state can only pay for economy class, and that's how they're required to travel. If they have their own miles from their credit card, they can use that to upgrade themselves, but generally the state shouldn't be paying for those kinds of upgrades."
All the officials admitted accepting the upgrades. All but Szigeti said that they solicited or directed assistants to solicit upgrades. Szigeti said he accepted upgrades to business class from Japan Airlines on work trips to Japan, and in making its decision, the commission pointed out that Japan Airlines has $1 million in contracts with the tourism authority.
"We have put a policy in place strictly forbidding any courtesy travel upgrades when conducting business on behalf of the Hawaii Tourism Authority," Szigeti and the agency said in a statement issued Monday. "We regret that this happened and appreciate the clarification from the ethics commission that courtesy travel upgrades are not available to any state employee."
The commission levied the administrative fines to close out the investigation, and the fines aren't considered legal admissions or findings of guilt. The fines are being paid as settlement agreements with the state instead of via formal processes.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
