Cayetano tax analysis criticized

By Gordon Y.K. Pang
Advertiser Capitol Bureau

The state Ethics Commission said it has "grave concerns" about former Gov. Ben Cayetano's use of state employees last year to analyze campaign promises by Republican gubernatorial candidate Linda Lingle, but stopped short of taking formal action.

The commission yesterday announced that it had reached an informal, advisory opinion on the matter in January. But the five-member panel could not reach agreement on whether the complaint filed by the Republican Party of Hawai'i should proceed to a formal hearing.

At issue is Cayetano's use of Department of Taxation staff to analyze Lingle's campaign platform. The analysis said her proposed tax cuts and credits would deprive the state of $428 million in revenues over four years. Cayetano said the research done to show the effects of promises made by candidates constituted a legitimate use of state resources.

The state GOP chairman at the time, Micah Kane, charged that the report was done to benefit Democratic candidates.

"The circumstances surrounding the critique of the candidate's campaign literature tended to indicate that there were political motivations at work," the opinion said.

Two of the Ethics Commission's five members, Ronald Yoshida and Carl Morton, sought to send the matter to a formal, public contested case proceeding. Two other members, Nadine Ando and Eloise Lee, disagreed. A fifth member, Dawn Suyenaga, whose spouse was involved with the Lingle campaign, recused herself despite a ruling by commission attorneys that she could vote on the issue.

With the commission deadlocked, commission members Yoshida and Morton "reluctantly agreed" to issue the advisory opinion.

Commission executive director Dan Mollway said he cannot discuss the specifics of any case. However, Mollway said any violations of the state Ethics Code found by the commission following a contested case hearing are forwarded to the chief executive of the branch of government under which the violations were made. The executive could then impose sanctions, including dismissal. The attorney general's office could also be called upon to seek restitution or some other legal remedy if warranted.

Lingle said in a statement: "I wish to thank the Ethics Commission for their clear statement that government resources should not be utilized for blatant campaign purposes."

Brennon Morioka, current Hawai'i GOP chairman, said he was disappointed the commission chose not to advance the complaint further.

"It was clear in their conclusion that the Ethics Commission believed the candidate was not treated in the same manner, so why not have a hearing?" Morioka said.

While no sanctions could have been imposed against Cayetano, who is no longer in office, Morioka said, the commission could have issued "a clearer definition of what state officials can or cannot do in terms of politicking. This was clearly motivated by partisan politics and I think the Ethics Commission needs to take a harder stand."

Mark Forman, interim chairman of the state Democratic Party, said, "I believe at the time Governor Cayetano said, 'I'm not a potted plant.' I don't think anybody expected the governor to be a potted plant so I understand why he did it."

Jill Tokuda, interim executive director for the Hawai'i Democratic Party, said the party played no role in Cayetano's decision to analyze the plans.

"He operated independently on this matter," Tokuda said.

Cayetano could not be reached for comment.

Cayetano also had campaign promises by Democratic gubernatorial candidates Andy Anderson, Ed Case and Mazie Hirono analyzed as well. The analyses concluded that Case's economic plan would not work, while the Anderson and Hirono plans did not contain enough information to form conclusions.

Soon after the GOP lodged its complaint, the Hawai'i Democratic Party filed complaints against Lingle with the Maui County Board of Ethics and the state Campaign Spending Commission over a 1998 news release she issued as Maui County mayor, criticizing Cayetano.

Lingle in February announced she had signed a settlement with the Campaign Spending Commission over that complaint, agreeing to pay $200 but admitting no wrongdoing. The Maui County Board of Ethics dismissed the complaint.

The Associated Press contributed to this report.