Woman charged in theft to testify in Harris probe

By Johnny Brannon
Advertiser Staff Writer

An investigative grand jury will re-convene today to continue a wide-ranging probe of campaign contributions to Mayor Jeremy Harris and the awarding of city contracts.

Among the witnesses subpoenaed to testify is Lisa-Katharine Otsuka, an associate of a consultant who worked for Harris' 2000 re-election campaign.

Investigators have questioned whether campaign money was improperly paid to her through the consultant, Harry Mattson. Otsuka said she does not know Harris, but she would not say whether she was involved with his campaign or detail her relationship with Mattson.

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's former attorney for the grand jury matters, Michael Green, previously said he would advise Otsuka to refuse to testify unless she is granted immunity from prosecution in the Harris case.

But Otsuka said after her arraignment in the theft case that she planned to testify today. Yesterday, she said she had retained a new attorney and was reviewing her options.

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.

Harris has said he does not know Otsuka, and campaign officials said she had no formal role in the campaign. Mattson has remained unavailable for comment.

Prosecutors questioned several past and present members of Harris' cabinet before the grand jury last month, and also questioned employees of several companies that contributed to Harris' campaign and were awarded city contracts.

Harris' attorney, William McCorriston, has repeatedly said that there is no connection between campaign contributions and the awarding of city contracts.

"I hope this investigation will wind up," McCorriston said yesterday. "It's been hurtful to a lot of people."

He 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.