Posted on: Friday, July 20, 2001

Judge requests data on Kahapea pension

By David Waite
Advertiser Staff Writer

Circuit Judge Reynaldo Graulty yesterday said he wants to know exactly how much former city housing official Michael Kahapea will be earning in retirement pay when he turns 65 before ruling on a request by prosecutors to have Kahapea pay back more than $1.6 million to the city.

Kahapea, now 58, was convicted in October of theft, money laundering and other charges after a Circuit Court jury found him guilty of funneling city money to businesses "owned" by friends, many of which existed only on paper. The firms were paid by the city to move businesses away from the city's 'Ewa Villages revitalization project, but most of relocation work was never done.

City Deputy Prosecutor Randal Lee told Graulty during earlier restitution hearings that of the $5.6 million in city money squandered on the 'Ewa Villages revitalization project, about $3.4 million benefited Kahapea or his associates directly.

Honolulu Police Maj. Daniel Hanagami has said that if Kahapea gave half of the money to his friends or relatives and kept half for himself, as he believes is the case, Kahapea would have pocketed between $1.6 million to $1.7 million.

An official from the state and county employees retirement system testified in court yesterday that the formula to determine the retirement pay for Kahapea, who worked for the city 11 years, would be based on the average pay he received during his three highest paid years with the city.

While Lee had information at yesterday's hearing about Kahapea's pay during the years he was employed by the city, as well as the formula that would be used to determine the amount of retirement pay Kahapea would receive, Lee was not able to say what Kahapea's monthly or annual retirement income would be.

Graulty then continued the hearing until July 30 so Lee can call a witness from the retirement system to calculate what Kahapea's retirement pay will be.

Kahapea gave contracts to move the 'Ewa businesses to friends and relatives, who kicked back large amounts of money to him, according to testimony at his trial. He was sentenced to 50 years in prison, although the Hawai'i Paroling Authority has yet to set the minimum term he must serve.

The prosecution maintained at Kahapea's trial that much of the money he pocketed was gambled away in Las Vegas slot machines from about 1992 to 1997.