Commission expands Harris donation probe

What do you think of the Commission's investigation of Mayor Jeremy Harris' campaign contributions? Join our discussion

By Johnny Brannon
Advertiser Staff Writer

The state Campaign Spending Commission expects to fine as many as seven more supporters of Honolulu Mayor Jeremy Harris for making illegal campaign contributions, and has issued 45 subpoenas for banking records and statements.

Mayor Jeremy Harris denies any connection to awards. Advertiser library photo

"I have had more than one company executive say they felt extorted by the campaign," Watada said. "They beg me not to reveal who they are and not to reveal what they're saying. There's clearly a fear of retaliation, that if they say something they're not going to get the contracts."

Harris campaign attorney Chris Parsons said the campaign has not pressured anyone for donations and would not knowingly accept any that were improper. Harris is running for governor in 2002.

"The campaign does not condone or encourage anyone to break the law, and anyone who does is not welcome in our campaign," Parsons said. "And certainly the mayor would not put up with anyone breaking the law."

The commission last month issued five fines totalling $7,750 to Harris supporters who gave his 1996 and 2000 campaigns more than the $4,000 limit per election for mayoral candidates. Watada said more than 60 businesses and individuals appear to have made excessive contributions.

He emphasized that the commission had not accused Harris or his campaign of wrongdoing. And Watada, who has headed the office since 1995, insists he is not engaged in a politically motivated vendetta, as the mayor has complained.

He would not say whether anyone interviewed by the commission had alleged that the Harris camp had directed them to make an illegal donation. But he called the findings so far troubling and said the investigation continues to expand.

The investigation is documenting an entrenched system, he said, through which business executives circumvent contribution limits by funneling money through their businesses, employees and relatives and require prospective subcontractors to donate.

"It's a food chain, and people at the bottom, they really suffer," Watada said. "We all knew it was going on, but we actually have hard evidence now that it's happening. Businesses I've talked to are very angry and very upset with the whole system. We've had people say they're laying off employees and at the same time making major contributions. They say that it's a necessary investment."

Some of the contributors being scrutinized also gave money to other candidates, Watada said, so the commission has requested records from the campaigns of Gov. Ben Cayetano, Lt. Gov. Mazie Hirono, former Honolulu Councilman Mufi Hannemann and Maui Mayor James "Kimo" Apana.

"I should say that I'm not in any way saying (the campaigns) have done anything wrong," Watada said. "But our investigation is widening because these contributors have given money to more than one candidate."

Harris has suggested that Watada had political motivations for targeting his supporters, and noted that Watada once campaigned for Hannemann, who was Harris' rival for mayor last year and is running for mayor again next year, as Harris runs for governor.

Watada acknowledged that he had volunteered for Hannemann's 1986 congressional bid, but said he had not campaigned for anyone while working for the commission and would not allow politics to influence an investigation.

Harris campaign attorney Parsons said there might be a perception among some businesses that contributing to Harris' campaigns would increase their chances of winning or keeping public contracts, but that it is flat wrong.

"There is no link between contributors to the mayor's campaign and contracts with the city, or, if he becomes governor, contracts with the state," Parsons said. "If someone gives money to the campaign expecting they're going to get favors, they're going to be disappointed. That may have been their experience before, but not with Mr. Harris."

Parsons said it was irresponsible and inflammatory for Watada to air his suspicions without specific allegations or evidence of wrongdoing.

"We feel we've been maligned repeatedly in public by the staff of the commission without justification," Parsons said. "I think it's very improper for him to be throwing that stuff out. If he has evidence, he should charge someone. If not, he should be quiet about an ongoing investigation."

Watada said he would take necessary action once all the evidence is gathered. Last month the commission levied a $5,500 fine — its largest ever — on Honolulu Police Commission member Alan Ho and his business partners Ben Fung and Edward Yu for exceeding the $4,000 donation limit to the Harris campaign.

Ho contributed $15,500 to Harris' 2000 campaign and $6,000 to his 1996 campaign as an individual and through Waikiki restaurants owned with his partners, Watada said. Harris appointed Ho to the police commission in 1999.

Fined $500 each for making excessive but smaller contributions to Harris were Hawai'i Design Associates, Community Planning, and John Farias Jr. Another firm, AES Design, was fined $750.

The Campaign Spending Commission is conducting more interviews with help from the private investigations firm Goodenow Associates.

"For the most part they've been truthful, and when they tell everything, we'll work out a conciliation agreement" that includes a fine, Watada said of the offenders. "If we don't get that cooperation, we can increase the fine or refer the case to a local, state or federal prosecutor."

The commission has asked the Harris campaign for financial records, but Watada would not say whether campaign officials would be interviewed.

"Right now we're focusing on the contributors," he said.

Larry Meacham of the government watchdog group Common Cause Hawai'i said the commission has developed a strong reputation of integrity in recent years, and it's not surprising the Harris campaign should bristle at the scrutiny.

"Every time they go after someone, the politicians take it personally and say they've been unfairly targeted," Meacham said. "Everyone always says they're being persecuted."

Watada said he would prefer that everyone simply abide by campaign contribution limits so he would not have to pursue them.

"This is already expanding more than I'd like to see it expand," he said. "But we're simply going to follow the money."

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.