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The Honolulu Advertiser

Posted at 10:43 a.m., Thursday, October 17, 2002

Otsuka refuses to testify in Harris probe

By Johnny Brannon
Advertiser Staff Writer

A subpoenaed witness refused to testify today before a grand jury investigating Mayor Jeremy Harris' campaign finances and the awarding of city contracts.

Lisa-Katharine Otsuka, 32, will invoke her Fifth Amendment right and remain silent unless she is granted immunity from prosecution, her attorney Paul Cunney said.

Otsuka is an associate of a consultant who worked for Harris' 2000 re-election campaign.

Harris campaign attorney Chris Parsons appeared before the grand jury today with documents that were subpoenaed, but said he does not know what prosecutors want from Otsuka.

"We're clueless," he said. "As far as the officers of the campaign, the people who were running the campaign, we have no information. We don't know Miss Otsuka."

Harris also has said he does not know Otsuka.

Investigators have questioned whether campaign money was improperly paid to her through the consultant, Harry Mattson. Otsuka has said she does not know Harris, and has not revealed whether she was involved with his campaign or detailed her relationship with Mattson.

Mattson has remained unavailable for comment.

Otsuka was arrested after she failed to appear before the grand jury when it first convened on Sept. 5. She was later indicted on an unrelated theft charge for allegedly stealing about $3,000 from a dance group's fund-raising event in 2001.

Several other witnesses are also expected to appear today, but prosecutors would not identify them or say how many remained to be questioned after the September hearing.

Otsuka was arrested at a Waikiki hotel in August on suspicion of money laundering, promoting prostitution and illegally operating a business. She has not been charged with those offenses, and said she was shocked by the arrest.

Parsons said he hoped the grand jury proceedings would conclude soon.

"This has gone on for a long time," he said. "A lot of very honorable people have been exposed to a lot of innuendo and a lot of doubt and I think it's time to wrap it up and put it to rest."

Harris' attorney, William McCorriston said he is "very confident" that questions posed to Otsuka before the grand jury will have nothing to do with the mayor.

An administration spokeswoman has said Harris changed the process for awarding nonbid design contracts to insulate it from political pressures and favoritism. The administration has declined repeated requests to explain specifically what was changed, however.

Investigative grand juries generally gather evidence that can later be presented to another grand jury if prosecutors seek an indictment.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.