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The Honolulu Advertiser

Posted at 12:17 p.m., Wednesday, December 22, 2004

Payouts of city program probed

By David Waite
Advertiser Staff Writer

Police raided a leased city office for the O'ahu Workforce Investment Board at 711 Kapiolani Blvd. yesterday and seized at least two computers and several boxes of files.

Officers arrived with a search warrant for the city-run training and employment program that coordinates job fairs and matches employers with job-seekers.

Among the issues being investigated are overtime costs and the legitimacy of certain travel expenditures, officials said.

City spokeswoman Carol Costa said today that the raid is "completely unrelated" to an ongoing probe by the prosecutor's office of illegal campaign contributions to Honolulu Mayor Jeremy Harris and other political candidates.

Costa said Harris ordered an internal investigation and audit of the agency Dec. 9 "after an (agency) employee came to the city with concerns about alleged improprieties."

The audit is being directed by the city Department of Budget and Fiscal Services while the investigation is being overseen by the city's Office of Corporation Council.

"Based on everyone I've talked to, there is no reason to believe this investigation has anything to do with campaign donations," Costa said.

Costa said she could not estimate how long the investigation would take.

Police Maj. Daniel Hanagami, a white-collar crime specialist who has played a key role in the three-year-long campaign contributions probe, would not say this morning whether yesterday's raid on the Oahu Workforce office was related to the campaign contributions probe.

He referred questions about the raid to city Deputy Prosecutor Randall Lee, who has headed the probe of illegal campaign contributions. Lee could not be reached to comment on the matter.

The agency falls administratively under the city Department of Community Services. Department director Michael Amii pleaded no contest in July 2003 to a misdemeanor theft charge for ordering a city worker to help with Harris' campaign on city time.

Amii was fined $495 and placed on conditions similar to probation for one year.

Oahu Workforce Investment Board executive director Christine McColgan could not be reached to comment on the raid.