Harris probe's fallout uncertain

By Johnny Brannon and Treena Shapiro
Advertiser Staff Writers

Now that the first criminal charges have been filed after a yearlong investigation of what officials have said were illegal campaign contributions to Mayor Jeremy Harris, many City Hall observers wonder where the investigation will lead and what impact it will have on Harris' ability to run the city.

Mayor Jeremy Harris "feels like a clean guy who somehow got some mud on him, and people are hoping it doesn't stick," said Gregory Gaydos, associate political science professor at Hawai'i Pacific University. Advertiser library photo

The mayor's political position seems to have been weakened not only by the investigation but by his decision to drop out of the race for governor last May, and his public behavior has changed dramatically, political analysts say.

"He's certainly gotten more passive," said University of Hawai'i political science professor Neal Milner. "People's perceptions of him have started to change. He's depended on having this almost impatient, can-do attitude out in the community. I think he's reacted to this in ways that are quite surprising."

Harris has cut down on the number of public appearances that colored the early days of the governor's race, and he has not held a news conference since he dropped out.

None of what has surfaced so far in the investigation means that he will be directly implicated in the campaign finance probe or even that the political damage from it will be permanent.

"He feels like a clean guy who somehow got some mud on him, and people are hoping it doesn't stick," said Gregory Gaydos, associate political science professor at Hawai'i Pacific University. "But if you don't put it to rest, in people's minds there's something there."

Four top executives of Honolulu engineering firm SSFM International Inc., and the wife of a fifth, have been charged with misdemeanors for allegedly funneling campaign money to Harris under false names to evade donation limits.

One of the five charged, SSFM president Michael Matsumoto, also faces a felony money laundering charge.

Investigators also are looking into donations connected to several other firms.

SSFM and the other companies were major campaign contributors to Harris and were awarded millions of tax dollars through nonbid city engineering contracts, though no link between the contracts and political gifts has been alleged in court.

The probe has ranged far wider than the original suspicions disclosed by the state Campaign Spending Commission last January — that the Harris campaign hid the source of contributions to evade strict limits.

Investigators also have delved into nonprofit groups that raised money for city events, and even arrested Cabinet member Mike Amii on suspicion of doing campaign work for the mayor on city time. No one, however, has been convicted of any crime.

Harris' lawyers have said all along that neither the mayor nor his campaign did anything illegal, and no evidence has publicly surfaced to prove otherwise.

As the investigation continues, Harris faces City Council queries about the city's growing debt burden and spending on popular but costly projects, such as the Central O'ahu Regional Park.

The combination has left Harris in the weakest political position since he became mayor in 1994, said Ira Rohter, another UH political science professor.

"I think there have been serious questions raised about his management," Rohter said. "He's prided himself on his achievements, and now he's having to answer all these questions. It's post-Christmas, and the credit-card bills are arriving."

Harris declined to be interviewed for this story. In a written statement, a spokeswoman said the mayor "is fully in control in the running of city government."

Harris is focused on overcoming the city's budget deficit, writing his State of the City address for this week, organizing a conference on sustainable development, and preparing the city's legislative package for introduction, the statement continued.Ê"It is our hope that the investigation is coming to a close, but I can assure you that his major focus is running this great city."

Several City Council members said that they hope Harris will be an effective mayor in spite of the challenges he faces. He is scheduled to remain in office for two more years, but re-election is ruled out by term limits.

"Certainly it is always difficult to be a chief executive as a lame duck. Being a lame duck under investigation makes his job that much more difficult," said Councilman Charles Djou, one of six newly elected council members sworn in Thursday.

Deputy City Prosecutor Randal Lee said the probe will likely continue for months and that others may be charged with money laundering and other offenses.

"There's a lot of bank documents we have to look through, and that takes a substantial amount of time and money," he said. "A lot of times, they use different accounts to conceal their activities, and that leads to other documents. We're moving as quickly as we can, given the fact that we don't have control over these records and that there are other cases we have to address."

Although the charges against the SSFM executives were filed three weeks ago, Harris has studiously avoided discussing the case. Rick Tsujimura, who co-chaired Harris' gubernatorial campaign, said he believes Harris has simply re-focused his attentions on city business, rather than shrunk under pressure of the investigation.

"I don't see it as him running away from anything. He's just not campaigning," said Tsujimura. "I don't think it's effected him personally, but I think he's spent a fair amount of time in reflection," especially about his decision to drop out of the governor's race.

"I think somewhere in the deep recesses of his mind, he wonders if he could have (won), as I think a lot of us do," Tsujimura said.

Djou said Harris enjoyed political strength for years because the City Council was not aggressive, while Harris was popular and easily won re-election in 2000.

"He was a political juggernaut who could not be stopped," Djou said. "A lot of the council felt that it was better to be in his boat, rather than attacking it."

Council budget chairwoman Ann Kobayashi said Harris should expect no free ride from the council, whose chairman has warned that the city may have to raise taxes to bridge a $180 million budget gap.

"I sense that the new members are very independent, very committed to bringing accountability to city government," she said.

Milner said the new council and budget dilemma offer Harris an opportunity to resuscitate his public image with strong and thoughtful leadership.

"Before, you took it for granted that Harris would be first at the table with all the numbers, able to mobilize the public," he said. "He took an eight-count. The question is whether he's going to get back up and fight."

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070. Reach Treena Shapiro at tshapiro@honoluluadvertiser.com or 525-8070.