Hawaii
Sandwich Isles Communications Broke The Law When It Cut Services To Hawaiian Homelands
Sandwich Isles Communications violated state laws and its obligations to its customers when it cut telephone and broadband services earlier this month without ample warning and is likely to face penalties for abandoning its services, according to testimony Monday before the Hawaii Public Utilities Commission.
Sandwich Isles’ President Al Hee was in the hot seat for much of Monday’s six-hour hearing to determine if the company broke the law when it gave its customers just a week’s notice that service could be terminated in late May. Its customers were given even less notice when services were actually cut in early June.
State and federal laws as well as Sandwich Isles’ certificate of authority, which allow it to operate in the state, require at least 30 days notice.
“There’s no doubt that we did not conform with the certificate of authority,” Hee said in his closing arguments.
The impact to Hawaiian homeland beneficiaries in Kahikinui on Maui and Puukapu on Hawaii island were particularly significant. They are far from areas that have cell service, and the shutdown of telephone services presented safety issues when households were unable to contact emergency services.
Hee argued that state and federal authorities should have been aware of the impending shutdown because Sandwich Isles has been losing money for at least the last four years. He blamed decisions made by the state Department of Hawaiian Home Lands to allow other carriers to operate on homesteads, thereby shrinking Sandwich Isles’ customer base.
State regulators and attorneys for the consumer advocate didn’t seem to buy that.
“There’s a lot of finger pointing going on, but I don’t hear a lot of accountability for this error,” Scott Boone, a state attorney representing the consumer advocate, said.
The PUC is expected to issue a written order that lays out what penalties, if any, Sandwich Isles will face and what the next steps will be to address the ongoing service disruption, PUC Chairman Leo Asuncion said.
Hee argued that the Hawaiian Homes Commission, and not the PUC, has jurisdiction in a case like this involving a provider on Hawaiian homelands. He also contended that the rules the commission was operating under didn’t apply to a company like Sandwich Isles, which was initially created to be the only company that serviced homesteads in rural areas.
But over the years, DHHL opened the way for other telephone and broadband providers to hook up people on homelands. Hee believes that lead to the financial ruin of his company.
The company defaulted on more than $130 million in federal loans, and a federal court entered a monetary judgment against it in 2020. That same year, the Federal Communications Commission fined Hee $50 million for violations related to fraud, charges that sent Hee to federal prison in 2016.
But what really did in Sandwich Isles, according Hee, was a recent bid by Hawaiian Telcom to acquire the conduits that bring connectivity to homes without also acquiring the equipment necessary to actually plug in those households. Because that equipment is still owned by Sandwich Isles, the company had a duty to provide services to its customers despite its financial straits.
Waimana Enterprises, Sandwich Isles’ parent company, also put in a bid for the conduits but lost to Hawaiian Telcom. Under questioning by commissioners, Hee implied that Sandwich Isles and Waimana are no longer responsible for people on homelands.
“If no one is truly interested in doing it other than Sandwich Isles and Waimana, that’s not our kuleana,” Hee said. “We’re not the people responsible for those Hawaiians out there that don’t have services. We were the solution.”
Boone’s questions focused on public safety concerns DHHL raised in written responses to the PUC’s subpoenas. Some households may not be able to dial 911 because their landlines and internet are down and they are out of the range of cell service.
Boone asked Hee if anyone at Sandwich Isles researched which of their customers would still have access to internet if their phone lines were cut. Hee said the company had not.
“We terminated service because we ran out of money. We didn’t research anything,” Hee said.
Hee said several times during the hearing that he wasn’t able to provide specific answers because he did not participate in the day-to-day operations of Sandwich Isles. All of its remaining 25 to 30 employees were terminated June 1, according to Hee.
Under questioning from Boone, Hee said the areas he knew that had lost voice services included Kahikinui on Maui, Puukapu on Hawaii island, parts of Molokai, and areas of Kauai. Hee also said that DHHL offices as well as Sandwich Isles’ other clients like the U.S. Coast Guard and Target still have service because of contractural obligations with those entities.
Caroline Ishida, the PUC’s chief counsel, wanted more specifics on where there are service outages, as well as where households may still have connectivity because they were not automatically disconnected yet.
“Does anyone out in the world know where those services are if you don’t know?” Ishida asked.
“I don’t know,” Hee said.
Ishida also asked if Sandwich Isles would refund customers who still paid their bills even while their services were down.
“Absolutely, no question about it,” Hee said.
The interactions between Hee and the PUC heated up once the commissioners had their turn to ask questions.
In one exchange, Hee said Sandwich Isles could restart services if the PUC could ensure it starts gaining revenue.
“If we order you to restart service, do you have the financial and personnel and technical capacity to perform that restart of service?” Commissioner Colin Yost asked.
“As long as that order has money attached to it, yes,” Hee said.
Commissioner Naomi Kuwaye pressed Hee on how much financial assistance Sandwich Isles’ parent company, Waimana Enterprises, is able to provide the beleaguered telecommunications company. Hee said Waimana’s financial support has already been in the millions.
Both Kuwaye and Yost asked repeatedly why Sandwich Isles did not notify its customers in advance that they would lose service, and asked Hee if he understood that Sandwich Isles’ certificate of authority required that.
“That’s what you got, and there are rules established that govern what happens under a COA. You are not disputing that,” Yost said.
“I am not disputing that,” Hee replied.
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HONOLULU (HawaiiNewsNow) – Anxiety ran high in Manoa ahead of Wednesday’s impending storm, which comes about two weeks after a second Kona low flooded 14 residential units along Koali Road.
It was not the first time the homes were swamped in recent months.
Last November, a water main break overflowed the same ground-level units near UH Manoa, causing extensive damage.
Now, as tenants clean up and repair their homes after the latest storm, they are bracing for yet another storm expected to hit Wednesday.
“It sounds like a movie, it sounds a little surreal, a little not real,” Koali Road resident Carlos Jimenez said.
Jimenez, whose home was flooded both times, recalled the recent one, which covered his home in about two feet of water, describing the deluge as “a little bit above knee high.”
The damage to Jimenez’s unit went beyond the floor, too, because of the heavy rain.
“The ceiling got water-damaged. From what I saw, it was soaking water, sagging, and it was about to collapse,” Jimenez said.
Fortunately, crews repaired his roof days before the third storm could send another round of downpours.
Outside, both of Jimenez’s vehicles sat damaged and dead.
After all that he has seen at his Koali Road home, Jimenez said he would take the new storm seriously.
“Get ready, you know, with my mother. She lives with me. She’s 87,” Jimenez said.
After witnessing the devastation in the neighborhood, Jimenez’s neighbor, Dario Aricala, whose home was spared, is not taking it for granted during this week’s wet weather.
“The last storm, we almost got flooded. We are hoping for the best that this storm is not such bad,” Aricala said.
Click here to donate to Jimenez’s GoFundMe page.
In the meantime, other residents have been staying elsewhere during cleanup and repairs, and the property manager said he has been helping them.
Copyright 2026 Hawaii News Now. All rights reserved.
A statewide Flood Watch is in effect across Hawaii from Wednesday morning, April 8, through Friday afternoon, April 10, as a developing low-pressure system northwest of the islands, described by the National Weather Service (NWS) public guidance as a kona low, is forecast to bring prolonged heavy rainfall and elevated flood risk.
The NWS office in Honolulu reports that the system will draw deep tropical moisture northward across the state, creating conditions favorable for widespread showers and thunderstorms. Excessive rainfall may lead to flash flooding in urban areas, low-lying locations, and regions with poor drainage, while steep terrain remains susceptible to landslides.
All major islands, including Kauai, Oahu, Maui, Molokai, Lanai, Kahoolawe, and the Big Island, are included in the Flood Watch. Forecasters note that antecedent wet conditions from recent rainfall events have left soils saturated, increasing runoff efficiency and the likelihood of rapid stream rises under heavier rainfall rates.
Multiple kona low systems affected the islands between March 10 and March 22, producing extreme rainfall totals, including more than 330 mm (13 inches) in about 12 hours on Oʻahu’s North Shore and multi-day accumulations reaching approximately 1 170 mm (46 inches) on Maui.
The events triggered widespread flooding, landslides, evacuations, and infrastructure stress, including emergency warnings tied to Wahiawā Dam and power outages affecting more than 130 000 customers statewide.
Despite several days of drier trade wind conditions, soil moisture remains elevated, allowing new rainfall to convert more efficiently into surface runoff, increasing the likelihood of rapid stream rises and flash flooding under the current forecast system.
The heaviest rainfall associated with the new system is forecast to develop during the midweek period, with conditions deteriorating from Wednesday into Thursday as the low-pressure system strengthens west of the state. Forecast guidance indicates that the western islands may experience the initial phase of heavier rainfall before activity gradually shifts eastward later in the event.
In addition to heavy rain, the system is expected to generate strong southerly winds, with gusts of 64–80 km/h (40–50 mph) possible across many areas and locally stronger gusts exceeding 93 km/h (58 mph) in exposed locations or near convective activity. A Wind Advisory may be issued as conditions develop.
Winter weather conditions are also possible at higher elevations on the Big Island, resulting in a Winter Storm Watch in effect for summits above 3 810 m (12 500 feet), where a combination of snow and freezing rain is forecast during the same period.
Heavy rainfall is likely to persist into Thursday and Friday, with the flash-flood threat remaining elevated into the weekend, but periods of heavy rain may continue beyond the initial peak as moisture remains in place around the system.
The setup reflects a kona low pattern, characterized by a low-pressure system northwest of the islands producing southerly flow and transporting deep tropical moisture into the region over multiple days.
References:
1 Area Forecast Discussion for Hawaii – NWS Honolulu – April 7, 2026
2 Flood Watch – NWS Honolulu – April 7, 2026
HONOLULU (HawaiiNewsNow) – Oahu residents aren’t taking any chances with emergency preparedness ahead of the latest round of severe weather.
City Mill has been working to keep shelves stocked with supplies.
“We’ve been selling a lot of sand and sandbags. We have a product called Quick Dam, and we have sold out at a couple stores. We’re trying to move them around so that everybody has something,” City Mill Merchant Iris Wilhelm-Norseth said.
Tape, batteries and flashlights have also been moving quickly among customers, along with pumps and rain boots.
City Mill and other officials are stressing emergency preparedness as recent storms have shown flooding can happen anywhere at any time.
“The little flash flood in Manoa kind of flipped people out too. That came out of nowhere. So people are very concerned,” she added.
Hawaiian Electric said it is also ready, following emergency preparedness procedures to ensure communities aren’t left without power for prolonged periods.
“It doesn’t take a named storm to really cause significant damage to the public infrastructure, whether it’s roads or other types of infrastructure, or the electrical, grid. We know that these heavy rains and very strong winds can have significant impacts,” HECO spokesperson Darren Pai said.
If the Public Safety Power Shutoff program is implemented, the utility said it would be a coordinated decision with emergency responders in the interest of keeping communities safe.
The Board of Water Supply is also asking customers to store water in case service is interrupted for an extended time.
And for storm supplies that don’t get put to use this time around, officials say not to toss them too quickly.
“This is also a great opportunity for people if they don’t use it to hold on to it because we are going into hurricane season starting in May again,” Wilhelm-Norseth added.
Copyright 2026 Hawaii News Now. All rights reserved.
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