Posted on: Friday, January 17, 2003
Firm fined $48,000 for improper donations
By Johnny Brannon
Advertiser Staff Writer
The state Campaign Spending Commission yesterday fined seven companies a total of $65,000 for making excessive or improper donations to Hawai'i politicians since 1996.
The commission also fined the Kamehameha Schools $10,000 and agreed to drop a lengthy investigation of improper donations allegedly connected to the charitable trust, formerly known as the Bishop Estate.
The largest fine, $48,000, went to Controlpoint Surveying Inc., which admitted making donations under false names to Honolulu Mayor Jeremy Harris and former city councilman Mufi Hannemann, former Gov. Ben Cayetano, and former Maui Mayor James "Kimo" Apana.
The donations were paid for by Controlpoint but were reported under the names of employees, their family members and associates, according to an agreement signed by company president Alden Kajioka.
Controlpoint gave $27,700 to Harris that way, $12,250 to Hannemann, $12,100 to Cayetano, and $8,000 to Apana, the documents say. Commission director Robert Watada said the company was not fined as much as it could have been because Kajioka had cooperated fully with the commission.
"As soon as he found out our investigator wanted to talk to him, he came over and opened his books and disclosed all the contributions made by his company," Watada said. "We keep telling companies that if they cooperate, the full extent of fines possible is not going to be assessed."
Kajioka did not return calls.
The commission had alleged that Kamehameha Schools violated its own policies by financing campaign contributions and the trust had broken state laws by not disclosing them between 1992 and 1997.
The trust admitted no wrongdoing in agreeing to pay the fine. Kamehameha chief executive officer Hamilton I. McCubbin said the settlement will allow the schools to focus on education.
Watada noted that the trustees who were in charge of the schools at the time of the alleged improprieties have since resigned. It would have been costly and time-consuming to continue the probe, which was under way for more than two years, he said.
"Since the people are no longer there, it was agreed that they would pay a fine of $10,000 and we would close the book," Watada said.
State law allows each political supporter to give no more than $6,000 to a candidate for governor, and $4,000 to a candidate for mayor.
The other companies that have agreed to pay fines are Fewell Geotechnical Engineering; CDS International; T. Iida Contracting; ECM Inc.; Hubs Hawaii Inc.; and Imata and Associates Inc.
Fewell will pay $10,500 for giving Harris $14,250 too much, of which $4,000 was donated under false names. The company also gave Cayetano $2,000 too much and $2,000 under false names.
CDS will pay $4,500 for giving excess amounts of $9,550 to Cayetano, $5,000 to former Lt. Governor Mazie Hirono, $3,050 to Harris, and $1,500 to Apana.
T. Iida will pay $1,000 for giving Harris $4,000 too much, and ECM Inc. will pay $500 for giving Harris $2,000 too much.
Watada said the Harris campaign had not reported a $4,000 contribution from ECM, and had failed to report many other contributions. Harris campaign attorney Chris Parsons said the campaign's policy was to report all donations and that he had not been informed of specific problems related to unreported money from ECM or anyone else.
The remaining fines were to Hubs Hawaii, which agreed to pay $500 for giving Hirono $2,000 too much, and Imata and Associates, which will pay $500 for giving Cayetano an excess $700.
The commission agreed to delay action on a complaint that Hotel Employees and Restaurant Employees Local 5 failed to report non-monetary contributions to Hirono's gubernatorial campaign, such as telephone solicitations for support.
Union representatives said such activity was independent of Hirono's campaign and therefore not subject to disclosure as a contribution, but that the work's value would be reported as an independent expenditure if required.
The commission dismissed three other complaints, filed against Certified Management, City Councilman Mike Gabbard and Rep. Tulsi Gabbard Tamayo for allegedly failing to fully report all campaign expenditures. Watada said the information either was provided or had not been missing.
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
