The jury-waived trial began this morning before Circuit Court Judge Sabrina McKenna. One of the key issues is whether the state agency is substantially meeting requirements under state law that it mail child-support checks to intended recipients within 48 hours of receiving them.

O'Brien said the agency is using the $7.2 million in its accounts as "a slush fund to cover up the incredible slipshod manner in which it manages the fund."

He said that audits by the state showed that the agency had continuing problems and opportunities for theft and fraud of the money. He told the judge that the money "was not safe as long as it is in the hands of the agency."

"The (agency) has no idea if theft has already occurred," O'Brien said.

O'Brien said the state agency ignored warnings about its current automated distribution system, the "Keiki" computer system, before it began and even punished the Big Island investigator who raised his concerns about the system.

The agency, with almost 200 employees and an annual appropriation of $18 million, sends checks to about 35,000 child-support recipients per month, logging an estimated $90 million to $95 million in child-support payments each year.

State Deputy Attorney General Charles Fell, who is defending the agency, told the court about the magnitude of the job. As of the end of June, the agency had 100,000 active cases, which amounts to about 450 cases per full-time employee.

In his opening remarks, Fell said the reliability of the Keiki automated computer system used to distribute checks, which began in July 1998, has been checked by the federal government.

He said the Keiki system is not, and was never intended to be, a traditional business accounting system.

"We know from the federal government audits and certification that the Keiki system is indeed reliable," Fell said, noting also that it sends out checks within 48 hours.