State cancels security contracts
By Jim Dooley
Advertiser Staff Writer
The Lingle administration yesterday canceled two airport security consultant contracts renewed in the closing days of Gov. Ben Cayetano's administration, calling them "inappropriate" and "a breach of public trust."
Under the terms of the contracts, canceled by the governor yesterday, compensation would have been: • Rudy Alivado: $82,500 and a maximum of $25,000 in overtime and $12,000 in travel and incidental expenses • Ernest Moritomo: $70,000 plus the same overtime and expense allowances.
Rodney Haraga, director of the state Transportation Department, said the consultants, Rudy Alivado and Ernest Moritomo, were informed of the contract cancellations yesterday.
Contract terms
Alivado, a former Honolulu police major and friend and political supporter of Cayetano, was to be paid $82,500 and a maximum of $25,000 in overtime and $12,000 in travel and incidental expenses. Moritomo, a former HPD lieutenant, was to be paid $70,000 plus the same overtime and expense allowances.
The yearlong contracts, renewed annually since the men were first hired in 1997, were renewed Nov. 15 by then-director of transportation Brian Minaai, about two weeks before Lingle was to take office. They were not due to expire until Jan. 16.
The contracts stipulate that if the state suspends or terminates them before their new expiration date of Jan. 15, 2004, it will have to pay the consultants their full annual salaries.
Haraga said yesterday that was not going to happen.
"We will pay them through 2 o'clock (yesterday)," Haraga said. "We're not going to pay them anything beyond that."
Alivado and Moritomo could not be reached for comment yesterday.
Haraga said in a press release that "the administration felt there were a number of irregularities" in the contracts, "including how the contracts were awarded, as well as their terms." He said the cancellations were made on the recommendation of Attorney General Mark J. Bennett.
"The renewal of these contracts by the prior administration was inappropriate," Haraga said. "This administration will not tolerate this type of behavior and breach of public trust."
Cayetano could not be reached last night for comment.
Cayetano said last month that the contracts had been renewed because the consultants' work at the airport "has been outstanding — well worth the money spent."
He credited the two with discovering police overtime abuse at the airport and uncovering evidence of fraud in the awarding of millions of dollars worth of airport construction and repair contracts.
"The two cases they cracked more than justified the cost of their salaries," Cayetano said.
Airport personnel told The Advertiser that evidence of alleged fraud was first developed by airport auditor Ross Higashi, who turned the information over to Alivado and Moritomo.
Haraga said yesterday that his department had 12 other personal services contracts like those awarded to Alivado and Moritomo, but none "way out of line, like these two."
The other contracts include two awarded to former police officers who have provided investigative assistance to Alivado and Moritomo. Those contracts will remain in force, Haraga said.
The state does not plan to replace Alivado or Moritomo, Haraga said.
Reach Jim Dooley at jdooley@honoluluadvertiser.com or 535-2447.
