Posted on: Friday, November 1, 2002

2 of Harris' consultants appear before grand jury

By Johnny Brannon
Advertiser Staff Writer

Lisa-Katharine Otsuka, arrives at the grand jury chambers yesterday afternoon with her attorney, Victor Bakke. Richard Ambo • The Honolulu Advertiser

Two political consultants who worked on Mayor Jeremy Harris' 2000 re-election campaign appeared yesterday before a grand jury investigating the campaign's finances and the awarding of city contracts.

Prosecutors and defense attorneys would not say whether Harry Mattson and Norma Wong testified before the secret panel or invoked their constitutional right to remain silent.

Mattson and Wong are partners in two polling and consulting firms that worked for Harris, and were paid about $75,000 by the campaign in 1999 and 2000.

The two arrived at the grand jury chambers before 8 a.m. and remained for several hours, but evaded reporters. Their attorneys declined to comment.

Another witness, Lisa-Katharine Otsuka, appeared at the grand jury chambers in the afternoon did not testify. Otsuka is an associate of Mattson, and investigators have questioned whether money from the Harris campaign improperly went to Otsuka.

Her attorney, Victor Bakke, said Otsuka met with Honolulu Police Department officers yesterday and provided a handwriting sample but was not asked for testimony.

Otsuka refused to testify before the grand jury on Oct. 17 unless she is granted immunity from prosecution in state and federal courts.

She complained then that police had recently arrested her mother at work for an outstanding traffic warrant and attempted to question her on matters related to the Harris case.

"We cooperated with HPD, but we could have done this down at the police station," Bakke said yesterday. "We're cooperating. They have a lot of power, as you've seen. We don't want anyone else arrested or wrung through the system."

Bakke and Otsuka would not elaborate on her relationship with Mattson, and he did not return calls later yesterday. Mattson suggested in a written statement last month that he had been involved in a legitimate business venture with Otsuka but that the relationship has soured.

Prosecutors said they could not comment on the investigation or the grand jury proceedings. Harris and Otsuka say they do not know each other, and campaign officials say Otsuka had no formal role in the campaign and was not directly paid by it.

Otsuka was indicted in September on an unrelated theft charge and is scheduled for trial in December. She also was arrested in August on suspicion of money laundering, promoting prostitution, and illegally operating a business, but has not been charged with those offenses.

The Harris probe began earlier this year, after investigators from the State Campaign Spending Commission found what they believe is evidence that Harris' campaign deliberately hid the sources of some donations to evade campaign contribution limits.

Harris campaign officials insist the suspicion is baseless.

A Harris spokeswoman has repeatedly stated that Harris changed city contracting procedures to insulate them from political pressures and favoritism, but has declined repeated requests to explain exactly what was changed.