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The Honolulu Advertiser

Posted at 11:37 a.m., Thursday, January 22, 2004

Airport contractor pleads guilty

By Jim Dooley
Advertiser Staff Writer

Another contractor pleaded guilty today in the Honolulu International Airport bid-rigging case, agreeing to testify in the multimillion-dollar scheme and to repay at least $25,000 to the state.

Herbert M. Hirota, 51, president of Hirota Painting Co. Inc., reached a plea bargain with the state attorney general’s office in which he pleaded guilty to one count of first-degree theft and agreed to cooperate with a continuing federal investigation of the cash-for-contracts scandal at the airport.

In his plea agreement, Hirota said he paid $5,000 to $7,000 in kickbacks to airport maintenance superintendent Dennis Hirokawa in return for receiving "small" airport maintenance and repair contracts worth no more than $25,000 each.

Hirokawa retired in 2002 after he was arrested and his airport office was searched by investigators from the attorney general’s office. He has not been charged with a crime and his attorney said he is innocent of any criminal activity.

Like other contractors who have reached plea agreements with the state, Hirota described a scheme in which dozens of small repair and maintenance jobs at the airport were steered to his company by state officials in return for kickbacks of cash, political donations and other favors.

Hirota said in his plea bargain that Hirokawa asked for cash "donations" and "gave me the impression that the donations were for political campaigns."

No record of campaign donations by any of the individuals named so far in the investigation has been found by the Campaign Spending Commission, according to commission Executive Director Robert Watada.

Circuit Judge Gerald Kibe set sentencing for Hirota in July, but Deputy Atty. Gen. Larry Goya said the sentencing may be delayed depending the extent and timing of Hirota’s cooperation in the federal probe.

Goya said five individuals have pleaded guilty in the case to date. One more agreement is being negotiated and once that is finalized, Goya said, the investigation will be turned over to the U.S. attorney and the FBI.

In a $1.25 million civil fraud suit filed last month, the state has identified former airport official Hirokawa, former airport visitor information program director Richard Okada, and three other contractors as major participants in the conspiracy. None has been charged with a crime and attorneys for all the defendants in the civil suit have denied wrongdoing by their clients.

Okada is not named as a participant in the bid-rigging scheme in Hirota’s plea agreement.