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The Honolulu Advertiser

Posted on: Thursday, December 23, 2004

Office raid focuses on agency's spending

Advertiser Staff Report

An investigation of the city's O'ahu Workforce Investment Board is focused largely on overtime costs and the legitimacy of certain travel spending, officials said yesterday.

Agency relies on grant money

The O'ahu Workforce Investment Board is a city agency that contracts for job training and employment services using federal grant money. It also coordinates job fairs.

Police seized at least two computers and several boxes of files Tuesday in a raid on an office the agency leases at 711 Kapi'olani Blvd. The agency is attached to the city's Department of Community Services.

Department director Mike Amii said he had not known that police would search the office, but had been told earlier that an employee had raised allegations that triggered an investigation by city attorneys.

"I know very little about it," Amii said. "I just need to let the investigation take its course."

City spokeswoman Carol Costa said Mayor Jeremy Harris ordered an internal audit of the agency Dec. 9 "after an 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 Counsel, Costa said.

The O'ahu Workforce Investment Board includes at least 27 members who oversee a small staff headed by executive director Christine McColgan, who directs day-to-day operations.

She was hired in June on a one-year contract and is paid an annual salary of $80,664, Costa said. McColgan could not be reached for comment, and no one returned repeated messages left with the agency.

Board chairman Elias Beniga said the raid came as a surprise to him and that he had not been informed of the scope of the investigation. Several other board members also said they had not known the search was coming.

Amii pleaded no contest in July 2003 to a misdemeanor theft charge for ordering a city worker to help with Harris' campaign during work hours. Amii was fined $495 and placed on conditions similar to probation for one year.

Harris declined to comment on the search. His attorney, William McCorriston, said he did not believe the raid was linked to a three-year investigation of illegal political donations that has focused mostly on money that went to Harris' campaign committee.

"In my mind, it's an independent inquiry that has nothing to do with the Harris campaign or the mayor," McCorriston said.

Costa also said the raid was "completely unrelated" to the campaign probe.

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

Police Maj. Daniel Hanagami, a white-collar crime specialist who has played a key role in the campaign investigation, would not say whether it is linked to Tuesday's search.

He referred questions to city Deputy Prosecutor Randal Lee, who has overseen prosecution of dozens of people who made illegal donations to Harris. Lee declined to comment, as did City Prosecutor Peter Carlisle.

City Council Chairman Donovan Dela Cruz said he was disturbed that a city agency had been searched, but that he would reserve judgment.

"We have to let the process take its course," he said. "I'm very concerned and I hope they get to the bottom of this quickly."

Costa said city attorneys had declined to release a copy of the search warrant executed by police. Corporation Counsel David Arakawa could not be reached for comment.

Advertiser Staff Writers David Waite, Ken Kobayashi and Johnny Brannon contributed to this report. Reach David Waite at dwaite@honoluluadvertiser.com or 525-7014. Reach Ken Kobayashi at kkobayashi@honoluluadvertiser.com or 525-8030. Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.