Firms, group to pay fines in illegal donation cases

By Johnny Brannon
Advertiser Staff Writer

The state Campaign Spending Commission voted yesterday to accept fines from two companies and a union political group to settle allegations that they made improper donations to Hawai'i politicians.

KSF Inc. agreed to pay $16,000, Akinaka and Associates will pay $8,000, and the Hawai'i Citizens' Political Committee will pay $1,000.

The fines are the latest in a long string of penalties that dozens of companies have paid for making illegal contributions that were disguised.

Prosecutors are also investigating whether contributions have been given in exchange for government contracts.

Donors can legally give no more than $6,000 to a candidate for governor and $4,000 to a candidate for mayor during a four-year election cycle.

KSF allegedly funneled $24,000 to former Gov. Ben Cayetano and $10,000 to Mayor Jeremy Harris by making donations under the names of company employees, their relative and friends.

Akinaka and Associates allegedly gave $13,000 to Harris and $7,500 to Cayetano under the names of company employees.

The Hawai'i Citizens' Political Committee, an arm of the International Brotherhood of Electrical Workers Local 1186, gave Harris $8,000 in 1996.

Gerald Yuh, Local 1186 business manager and financial secretary, said the money had been given during a previous union administration, and that he was determined to prevent any similar problems.

"It's very much different now," he said. "Accountability and responsibility are what it's all about."

KSF's attorney could not be reached for comment, and neither could Robert. Y. Akinaka, Akinaka and Associates president.

Campaign commission director Robert Watada said KSF and Akinaka had cooperated fully with his investigation of the donations.

"It was just another case of wanting to get their contributions in to candidates to make sure they got into the game," he said.

He said many companies believed they would be frozen out of government contracts if they did not contribute to winning politicians.