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The Honolulu Advertiser
Posted on: Saturday, November 2, 2002

Developments in HCDCH case

Advertiser Staff

A timeline of developments involving the Housing and Community Development Corp. of Hawai'i.

• 1999 — 2002: U.S. Department of Housing and Urban Development audits criticize HCDCH management, fiscal practices and failure to spend money in timely manner.

• May 20, 2002: HUD Assistant Secretary Michael Liu send letter to HCDCH citing serious management deficiencies at the agency. He orders agency to spend up to $2 million on private management consultant contract.

• July 5, 2002: The Advertiser reports that HCDCH executive director Sharyn Miyashiro awarded a non-bid, sole source contract on Sept. 22, 2000, to Punaluu Builders, a construction firm partly owned by ex-husband Dennis Mi-tsunaga.

• Sept. 1, 2002: Liu sends Miyashiro a letter alleging a conflict of interest in contract award to Punaluu Builders.

• Sept. 4-7, 2002: HUD auditors review HCDCH files.

• Sept. 8, 2002: The Advertiser details overlapping public/private interests among HCDCH board members.

• Sept. 13, 2002: Liu sends letter imposing tight new restrictions on HCDCH expenditure of federal money, including prior approval of all contracts and all management hiring.

• Sept. 30-Oct. 10, 2002: HUD reviewers examine HCDCH books.

• Oct. 8, 2002: Miyashiro announces to staff she will retire at end of year.

• Oct. 11, 2002: The Advertiser reports that records are missing in several HCDCH contract files that should have been used to justify millions of dollars worth of consultant contracts.

• Oct. 14, 2002: HUD auditors accuse Miyashiro of conflict of interest in contract award and criticize consultant contract procedures.

• Oct. 15, 2002: Gov. Ben Cayetano instructs attorney general's office to investigate HCDCH.

• Oct. 28, 2002: The Advertiser reveals that HCDCH forfeited $461,000 in federal money, after the spending deadline expired, that could have been used to hire three employees. Agency said a hiring freeze prohibited the hiring.

• Nov. 1, 2002: Liu letter seeks resignations of Miyashiro, executive assistant Robert Hall, and nine board members of HCDCH by the end of the year and demands reimbursement of $771,000 for Punaluu Builders contract. Cayetano, a Democrat, blasts Liu, a former prominent Hawaii Republican, saying his letter was timed to influence the Nov. 5 general election.