Donor says he gave for contracts

By Johnny Brannon
Advertiser Staff Writer

An engineering executive who pleaded no contest yesterday to funneling illegal 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.

Harris

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-per-donor contribution limit.

Prosecutors have searched for evidence of a direct link between campaign money and contracts that would substantiate bribery charges, but have made no specific allegations. Harris has denied any connection and maintains he never solicited or knowingly accepted illegal donations.

Nearly 30 defendants have been charged with other campaign-related offenses in the probe, 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, 51, said he "was not aware of the extent of the law" when he orchestrated the illegal donations, but he conceded it was no excuse.

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

In exchange for his plea, prosecutors agreed not to pursue charges against Takushi's relatives who took part in the scheme.

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

SSFM also was fined $303,000 by the state Campaign Spending Commission last year for funneling $425,000 in illegal donations to Harris, former Gov. Ben Cayetano, former Lt. Gov. Mazie Hirono, former Mayor Frank Fasi, former Maui Mayor James "Kimo" Apana and former City Councilman Arnold Morgado.

Commission director Robert Watada said officials from many Hawai'i companies had told him they were pressured to make campaign donations to various politicians or risk losing work to Mainland firms, while Mainland companies had been solicited with a similar warning.

"That argument has been used both ways, at least from what we've been told," Watada said.

Many companies that gave heavily to Harris also won big city contracts. SSFM was paid at least $7,039,000 during Harris' tenure for work on projects such as the Ha'iku stairs renovation, Bus Rapid Transit corridor and Central O'ahu Regional Park, city records show.

The continuing 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 people from two companies.

Neither Harris nor his campaign officials have been charged with wrongdoing. Harris dropped out of the race for governor a few months after the criminal investigation began in early 2002. His attorney has alleged that donations to Harris were unfairly singled out for prosecution to sabotage his political career.

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