Hawaii Recycling Program Under Fire: Audit Reveals Ongoing Failures and Fraud Concerns

·3 min read

A recent audit of Hawaii's recycling program shows a lack of progress, leading to concerns for businesses and investors, especially with upcoming changes to the 'bottle bill'.

Volunteers loading garbage bags onto a truck during an environmental cleanup event.
Photo by Alfo Medeiros

Hawaii's recycling program, celebrating its twentieth anniversary, continues to face scrutiny as a recent audit reveals ongoing issues within the Department of Health (DOH). The audit, reported by Hawaii Free Press, highlights persistent failures to implement prior recommendations, including those mandated by the state legislature under Section 342G-121.5, HRS. This lack of progress raises concerns for businesses and investors who need confidence in the transparency and efficiency of state-run programs.

The audit findings have significant implications for various sectors. The “bottle bill,” officially known as the Deposit Beverage Container Program, is on the verge of major changes, and a new bill proposes to double the deposit and refund value for eligible beverage containers from 5 cents to 10 cents, effective January 1, 2026, as per Big Island Thieves. The aim is to boost recycling rates and cut down on litter. However, repeated failures to implement prior recommendations, could undermine the effectiveness of such initiatives.

Previous investigations detailed in Hawaii News Now have uncovered instances of potential fraud within the recycling redemption system, with concerns raised about the accuracy of self-reporting by recycling centers. A 2019 report in the Star Advertiser even emphasized that the redemption system operates largely on an honor system, and raised concerns that the agency is not equipped with the staff to run a regular auditing routine as required.

For businesses, the issues identified in audits can create uncertainties around compliance costs and logistical challenges. Investors, on the other hand, may express concerns about the program's financial management and long-term viability. These persistent issues require a renewed focus on accountability, transparency, and efficient management within the DOH to ensure the effective administration of recycling programs. The state's commitment to sustainability depends on it.

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