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The Honolulu Advertiser

Updated at 11:37 a.m., Wednesday, November 27, 2002

Grand jury session cancellation unclear

By Johnny Brannon
Advertiser Staff Writer

The session of a grand jury seeking indictments for illegal campaign contributions by people connected to a major Honolulu engineering firm was abruptly canceled an hour before it was to convene today.

Prosecutors would not say whether anyone targeted in the case had agreed to cooperate with authorities and testify against others, or whether the cancellation was due to a legal challenge.

The grand jury was set to hear evidence regarding contributions that people connected to SSFM International Inc. made to Mayor Jeremy Harris, Gov. Ben Cayetano and other Hawai'i politicians.

Officers and employees of the engineering firm, and their relatives, donated at least $85,000 to Harris since 1996, and gave nearly that amount to Cayetano, according to state Campaign Spending Commission records. People connected to the company gave lesser amounts to Maui Mayor James "Kimo" Apana and Lt. Gov. Mazie Hirono.

Commission director Robert Watada said he had been subpoenaed to testify in the case but was informed this morning that he need not appear before the grand jury. City Department of Design and Construction director Rae Loui was also subpoenaed; she could not be reached for comment.

SSFM is one of the state's largest engineering companies and has worked on a wide variety of city and state projects, such as the Central O'ahu Regional Park, Sand Island Wastewater Treatment Plant and the Honolulu International Airport terminal.

SSFM president and chief executive officer Michael Matsumoto did not return calls, and an attorney for the company declined to comment.

The campaign commission has long been investigating political donations linked to SSFM. Company officers and directors asked people to contribute to Harris and Cayetano, then reimbursed them to evade state contribution limits, according to court documents supporting a subpoena the commission issued in March. The payments were allegedly made from a special account held by Matsumoto.

A separate grand jury has been meeting for months to hear evidence related to Harris' campaign and the awarding of city contracts.

Harris' top campaign fund-raiser and several Cabinet members have appeared before that grand jury, which is expected to continue meeting into the new year.

Harris has denied any link between campaign contributions and the awarding of city contracts.