Harris aides to testify today before grand jury
| Key players in the inquiry into donations, city contracting |
By Johnny Brannon and Robbie Dingeman
Advertiser Staff Writers
An investigative grand jury is set to convene this morning at Circuit Court to hear testimony from past and current members of Mayor Jeremy Harris' Cabinet about how city contracts have been awarded during the mayor's tenure.
The panel is also scheduled to hear testimony from employees of at least four engineering companies that contributed heavily to Harris' mayoral and gubernatorial campaigns and which won lucrative consultant contracts with the city and state.
Investigators have asked whether any contracts were awarded in exchange for contributions or were solicited with that understanding or expectation, and whether contractors were pressured by anyone to hire certain subcontractors for government projects. About two dozen witnesses have been subpoenaed to testify.
Harris declined to comment on the proceedings or the fact that his Cabinet members have been subpoenaed. He has insisted that there is no connection between campaign donations and city contracting and that the system for selecting contractors is set up to preclude favoritism, cronyism, and political kickbacks or bribes.
"I'm looking forward to testimony under oath before the grand jury because that should put to rest any suggestion that's there's been some quid pro quo of contracts for political contributions," said Harris' attorney, William McCorriston.
"I think it's necessary to wind up this investigation, and if this is leading toward that end, it's a good thing."
The criminal investigation began in January when the state Campaign Spending Commission voted to refer an administrative probe of the Harris campaign to Honolulu Prosecutor Peter Carlisle.
Robert Watada, the commission's director, said investigators working for his agency have found evidence that Harris campaign officials hid the source of political contributions by attributing them to people who never donated to the campaign.
Investigators from the San Francisco district attorney's office have assisted Honolulu prosecutors by questioning several residents of the Bay area who say they never donated money to Harris but were listed on Harris campaign reports as contributors.
Chris Parsons, attorney for the Harris campaign, said he is confident that neither the mayor nor campaign officials would be charged with any wrongdoing.
"I continue to be confident that when the dust settles, no one who was involved in any key way with the campaign was involved in anything criminal," said Parsons, who has been subpoenaed to present campaign documents to the grand jury and to vouch for their authenticity.
He declined to describe the nature of the records, but said he would cooperate fully with prosecutors and the grand jury.
"People in key positions in the campaign have not done anything to violate the law," Parsons said. "We're cooperating. They've asked for documents, and we're providing them."
Witnesses subpoenaed to testify before investigative grand juries are generally not suspected of wrongdoing, but they can be granted immunity from prosecution and be compelled to provide evidence that incriminates others, legal experts say.
The proceedings are closed to the public. Witnesses may be represented by attorneys, but they cannot be present during questioning.
Investigative grand juries do not generally levy criminal charges against suspects, but instead gather evidence that can be presented to a second grand jury later if prosecutors elect to seek charges. The same citizens who serve on an investigative grand jury can be impaneled as the grand jury that considers whether to hand down indictments.
The city officials who have been subpoenaed to testify have been in charge of managing taxpayer money for the city or awarding contracts for city construction projects.
They include former Department of Budget and Fiscal Services directors Roy Amemiya and Caroll Takahashi; Department of Design and Construction director Rae Loui; and a former director of that department, Randall Fujiki, who now heads the Department of Planning and Permitting.
The companies with employees who have been subpoenaed include R.M. Towill Corp., ParEn Inc./Park Engineering, SSFM International Inc., and Thermal Engineering Corp. All four firms contributed to Harris' campaigns, as did many company employees and their family members.
The state Campaign Spending Commission fined Thermal Engineering $31,000 earlier this year for improperly reimbursing members of the company's board of directors for money they donated to Gov. Ben Cayetano, Harris, Maui Mayor James "Kimo" Apana, and gubernatorial candidate Linda Lingle. Neither those politicians nor their campaigns have been accused of any wrongdoing connected with the contributions.
Commission director Robert Watada said his agency has also been investigating the donations made by people associated with Park Engineering, R.M. Towill and SSFM, to see whether the companies improperly reimbursed contributors. Company officials either could not be reached or declined to comment.
The Harris administration awarded several major nonbid consultant contracts to those three firms, which have also performed work for the state. Thermal has worked on state projects, but has not been the prime contractor for any recent city projects.
Police and prosecutors have also questioned a tax attorney, Michael Shea, who helped establish two nonprofit groups that raised money for high-profile environmental conferences that the city sponsored under Harris.
The tax-exempt groups are chaired by Harris' chief political campaign fund-raiser, Peter Char, and received contributions from city contractors and companies that contributed to Harris' campaigns. One of the groups also received $100,000 from the city for a 1999 conference that drew hundreds of participants from dozens of Pacific Rim nations.
Char said that the nonprofits were not involved in Harris' political campaigns and that all the public money was spent appropriately and has been fully accounted for.
"The federal tax code is very clear: We cannot engage in anything that smacks of political activity," he said.
Char, who has not been subpoenaed or accused of any wrongdoing, said he had not expected that his dual roles as Harris' campaign fund-raiser and chairman of the nonprofits would raise questions about where he drew the line between the two.
"If history judges that I made a mistake from a public relations point of view, that's history's judgment," he said.
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.