Governor orders inquiry into housing agency allegations
By Jim Dooley
Advertiser Staff Writer
Gov. Ben Cayetano has asked Attorney General Earl Anzai to investigate allegations of wrongdoing in the state public housing agency, the Housing and Community Development Corp. of Hawaii (HCDCH).
"If the Attorney General finds any evidence of wrongdoing, the state will take action and share its findings with the federal government and all appropriate and interested government agencies," Cayetano said in a written statement yesterday.
He was responding to an Oct. 10 letter from federal official Michael Liu to HCDCH board chairman Wesley Segawa, listing numerous violations of federal procurement law and regulations in the award of millions of dollars worth of federally funded contracts by the agency and its executive director, Sharyn Miyashiro.
The violations centered on contracts she awarded to companies partly owned by brothers Dennis and Dwight Mitsunaga, both former in-laws of Miyashiro.
"If Mr. Liu believes a criminal investigation is warranted, then he should refer the matter to the U.S. Attorney's office for action," Cayetano said.
"It is important to understand the difference between negligence and criminal wrongdoing," the governor's statement continued.
"If the Attorney General finds evidence of negligence, the state will take immediate corrective action. If there is evidence of criminal wrongdoing, the state will refer the matter to the appropriate government agencies for prosecution."
The governor said the housing agency "has been one of the most productive ever in providing moderate rentals for Hawai'i's needy and poor. With limited resources, more affordable rental units were preserved and built than under all other administrations combined."
Liu, assistant secretary in charge of public housing for the U.S. Department of Housing and Urban Development (HUD), put tight new controls on HCDCH's award of consulting contracts. Last month, he ordered the agency to spend as much as $2 million to hire a consultant to help straighten out its finances.
Last week, Liu said the management contract out of Washington might be finalized this month.
Reach Jim Dooley at jdooley@honoluluadvertiser.com or 535-2447.
