Audit finds Hawaii’s recycle program susceptible to fraud

HONOLULU (AP) — A state audit says Hawaii’s redemption and recycling program is susceptible to fraud because it relies on distributors and redemption centers to self-report. The Honolulu Star-Advertiser reports the audit released Tuesday found that officials have not addressed flaws in the state Deposit Beverage Container Program despite previous audits identifying problems more than a decade ago. The state auditor hired a certified public accounting firm that redeemed beverage containers at 10 redemption centers in the state. According to the report, auditors found two cases where records appeared to be altered so the state would reimburse the recycler more than what was paid out. State Auditor Les Kondo said in a statement that the program does not have “incentives or controls for distributors and redemption centers to report accurate numbers.”