Mayor hires outside auditors
| • | Harris says own party is to blame for investigation |
| • | Harris discusses 'lots of hurdles' in Q&A |
By Robbie Dingeman
Advertiser City Hall Writer
Honolulu Mayor Jeremy Harris said yesterday he has hired an independent accounting firm to audit all of his campaign finances, including spending records that are the subject of an investigation referred last week to city prosecutors.
Bruce Asato • The Honolulu Advertiser
Harris, who plans to quit as mayor in July to run for governor, is taking the step because of a continuing investigation into his campaign contributions by the state Campaign Spending Commission.
Mayor Jeremy Harris remains committed to his campaign.
Harris said Peterson Consulting LLC, a Chicago-based audit firm, will review all of the records for the Harris campaign 2000.
In addition, the firm will examine records from July through December of last year.
That is the period covered by the next state Campaign Spending Commission report, due Jan. 30. Campaign officials said the auditors will fly in this week from the company's San Francisco offices.
Harris campaign spokeswoman Ruth Ann Becker also said Peterson will conduct a management audit of all campaign finances "to determine how records management could be improved to help prevent any potential problems."
Becker said the campaign last year purchased more than $15,000 in additional software because of the continued record-keeping problems that had cropped up in using the software provided by the state campaign spending commission.
On Tuesday, the commission referred its probe of the Harris campaign to city Prosecutor Peter Carlisle as a criminal case.
Harris has denied any wrongdoing and said that the spending commission's executive director, Robert Watada, has a vendetta against him. Watada denies that and said he's just doing his job in tracking down those who break the law.
On Friday, Carlisle began sending out subpoenas for campaign records from the Harris 2000 mayoral campaign, as expected after receiving the case. Becker said that campaign attorney Chris Parsons was served Friday with the legal papers.
Becker said the records in question were similar to those already turned over to the commission. She said the subpoena asks that the materials be turned over by this Friday. No paperwork has been turned over yet by the campaign because it is still being compiled, she said.
Watada said he has turned over Harris campaign records requested by prosecutors.
In 1998, Kamehameha Schools (then known as Bishop Estate) hired the firm to conduct an audit of the educational institution. The audit proved controversial, faulting Kamehameha Schools' then-president Michael Chun and the trustees for lack of leadership and for ignoring teachers, students and parents when making decisions.
Peterson also has worked in Hawai'i for the state Insurance Division on other investigations.
Founded in 1980, Peterson Consulting describes itself as a firm of advisers and consultants providing financial, economic, accounting, engineering and information analysis and expertise to a diverse client group.
The company lists 17 offices nationwide and international offices in London. Peterson officials say the company has expertise in oil and gas, construction, healthcare, insurance, government contracts, pharmaceuticals, telecommunications, financial institutions and utilities.
