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The Honolulu Advertiser

Posted at 10:55 a.m., Friday, July 16, 2004

Campaign cash sought to protect city contracts, lawyer says

By Johnny Brannon
Advertiser Staff Writer

An engineering executive who pleaded no contest today to illegally funnelling campaign contributions to Mayor Jeremy Harris gave the money as part of a long tradition meant to ensure that important government contracts go to Hawai'i companies rather than Mainland firms, his attorney said at a sentencing hearing.

SSFM International vice president Lee Takushi, who admitted directing relatives to contribute $28,000 in company money to Harris' campaign committee, was following a 50-year pattern in which companies bankroll Hawai'i politicians in hopes that lucrative public works contracts will be doled out locally, attorney Brook Hart said.

It was the first courtroom admission of a tacit contracts-for-contributions system to emerge from a 30-month investigation of dozens of companies, focusing mostly on hundreds of thousands of dollars that went to Harris.

"He is just one person of many who followed this practice for many years, and he is sorry he did it," Hart said in arguing that Takushi should not be sentenced to jail or probation for a misdemeanor charge of exceeding the $4,000 donation limit.

Many companies that were awarded big city contracts gave heavily to Harris' campaign. Prosecutors have searched for evidence of a direct link between the money and contracts that would substantiate bribery charges, but have yet to make any specific allegations.

Nearly 30 defendants have been charged with other campaign-related offenses during the probe, however, including SSFM president Michael Matsumoto, who pleaded no contest last year to a felony money laundering charge and a misdemeanor campaign violation for steering at least $140,000 to Harris' committee.

Hart said Takushi "was put in a position by his boss of either following the boss' direction or creating some friction."

District Court judge Paula Devens fined Takushi $2,000 but agreed to forgo a jail sentence and to defer acceptance of his plea for one year, allowing him to expunge his criminal record if he is not charged with additional offenses.

Takushi said he "was not aware of the extent of the law" when he orchestrated the illegal donations, but conceded that was no excuse.

"I am very sorry for violating the law," he told Devens in a quiet monotone. "I will never do that again."

Neither Harris nor any of his campaign officials has been charged with wrongdoing. Harris launched a campaign for governor but dropped out of the race a few months after the investigation began in early 2002.

Takushi's wife, June Takushi, was fined $1,000 last year after pleading no contest to the same charge as her husband.

The probe has netted a few high-profile defendants, including Leonard Leong, a police commissioner who resigned under pressure, and Donald Kim, former chairman of the University of Hawai'i Board of Regents. Both pleaded no contest to misdemeanors.

Deputy prosecutor Randal Lee said misdemeanor charges were filed this week against six more suspects from two other companies.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.