Posted on: Friday, May 31, 2002

Liquor panel had begun probe

By Curtis Lum
Advertiser Staff Writer

The Honolulu Liquor Commission's administrator yesterday said he was conducting his own investigation into alleged corruption on his staff as early as a year ago, and that the indictments last week of eight current and former investigators came as no surprise.

Wallace Weatherwax said he did not know who or how many of the investigators were under investigation by the U.S. Attorney's office. But he said he knew a grand jury was hearing evidence last week and would issue the indictments.

Two retired inspector supervisors and six current inspectors were indicted May 23 on 57 counts of bribery and extortion. The eight are accused of taking bribes from hostess bars in return for not enforcing liquor laws. The six were placed on administrative leave.

In an interview, Weatherwax said there were "several instances" that go back to mid-2001 in which similar allegations were made. He said the allegations were reported to Honolulu police and that HPD and the commission began investigations.

When the federal government got involved, Weatherwax said, he was asked to halt his probe.

"Because they asked us not to go forward, I could not complete my investigation to find out which ones (were under investigation), so everyone was under suspicion," he said.

Weatherwax said he doesn't believe any cases that involved the six indicted inspectors are in jeopardy. He said other evidence, including police reports, are available.

For the past two years, HPD has been under an agreement with the commission to conduct undercover operations at hostess bars. The cases, mostly involving prostitution, are turned over to the Liquor Commission for processing, he said.

"That 10 percent of the licensees where you need to do some kind of undercover operations, the police department is well-suited to do that and that's why we have them do it," he said.

On Monday, eight former police officers will begin training to temporarily fill the vacant positions.

"The operational need here is primarily to have a presence in these establishments and to maintain what is already the high compliance of the licensees," Weatherwax said. "It's not like we've got rabid people who are suddenly out there fondling each other every 10 minutes. It's not happening."