Fine accepted in campaign case

By Johnny Brannon
Advertiser Staff Writer

The state Campaign Spending Commission voted 3-0 yesterday to accept a $53,500 fine from a Hilo engineering firm owned by a former chairman of the state's public housing agency, who is accused of steering illegal donations to four Hawai'i politicians.

Investigators found that Wesley R. Segawa and Associates illegally funneled $26,275 to Mayor Jeremy Harris, $21,950 to former Gov. Ben Cayetano, $14,300 to former Lt. Gov. Mazie Hirono, $12,500 to former Maui Mayor James

"Kimo" Apana, and $3,000 to Hawai'i County Councilman and former mayoral candidate Fred Holshuh.

Segawa was arrested last Friday on suspicion of money laundering and other offenses linked to campaign donations. He was released uncharged pending further investigation. Segawa's attorney declined to discuss the fine or arrest yesterday.

Segawa chaired the Housing and Community Development Corp. of Hawai'i until federal housing officials pressured him and other board members to resign last year and alleged that the agency was mismanaged.

Campaign Spending Commission director Robert Watada said Segawa and his company evaded campaign donation limits by funneling money through a network of employees, relatives and friends.

"There was a fairly clear-cut paper trail on this one," Watada said.

None of the politicians who received the money have been charged with wrongdoing, but their campaign committees will be required to forfeit the money if it is available, he said.

Harris' committee is all but bankrupt, and Cayetano's committee shut down long ago, Watada said. But if either candidate raises money for a new campaign, "we will be waiting at the door" to collect, he said.

Also fined yesterday was GYA Architects Inc., of Wailuku, Maui. The firm agreed to pay $6,500 for making smaller illegal contributions to Harris and Cayetano. GYA president Alvin Yoshimori could not be reached for comment.