7th arrest made in case of kickbacks at airport

Advertiser Staff

State authorities yesterday morning arrested a seventh person in connection with an investigation into an alleged cash-for-contracts kickback scheme at Honolulu International Airport.

Investigators from the Department of the Attorney General arrested Eric S. Kawasugi, 52, the owner and president of Island Fence Inc., on suspicion of theft, forgery and conspiracy to commit theft.

Kawasugi was arrested at his company at 1143 Hopaka St. and booked at the District Court cellblock, where he was released pending further investigation. The six others, who were arrested beginning in late June, likewise were not charged and were released afterward.

Neither Kawasugi nor the state attorney general's office was available for immediate comment.

The investigation centers on millions of dollars in airport construction and repair contracts awarded by airport personnel to private firms since 1995. A group of contractors are alleged to have inflated bills for airport work and kicked-back cash and other gratuities to airport personnel.