Liquor Commission may get sensitivity training
By Johnny Brannon
Advertiser Staff Writer
The agency that regulates strip clubs and hostess bars must fight discrimination against women and gay people to settle two lawsuits filed by a former liquor investigator.
Carla J. Chu's state and federal suits charged that Honolulu Liquor Commission employees repeatedly harassed her because of her gender and sexual orientation, and that the agency failed to deal with it.
"She was very dedicated to her work," attorney Emlyn Higa said. "It got out to other investigators that she was gay, and thereafter she had to endure a lot of taunting and other things, much of it very childish, that made it very difficult to work."
The settlements, which are awaiting a vote today by the City Council, require payments to Chu of $250,000. The city would pay $100,000 and insurance would cover the rest.
But Higa and another attorney said there is much more at stake than money.
The settlement requires annual training of Liquor Commission investigators and other employees to increase sensitivity and prevent discrimination based on gender and sexual orientation. The training would continue for at least three years.
April Wilson-South, an attorney with the Hawai'i Women's Law Center, said it was very important to Chu that such issues be addressed so that others aren't harassed like she was.
"We hope it makes a difference, and Ms. Chu hopes it makes a difference at the Liquor Commission," Wilson-South said.
The suit represents another setback for the scandal-plagued agency.
In a major FBI probe, eight commission employees were indicted in U.S. District Court in 2002 for allegedly accepting bribes and ignoring violations at dozens of strip clubs and hostess bars.
Five of the eight pleaded guilty to federal racketeering charges; the other three are awaiting trial. One inspector fled to the Philippines and was extradited to Honolulu six months later.
The defendants face multiple charges that each carry a maximum sentence of 20 years in prison and a $250,000 fine.
The prosecution's star witness is former liquor inspector Charles Wiggins, who secretly assisted the FBI and tape-recorded statements that allegedly incriminate the indicted inspectors.
The city agreed last year to pay $387,500 to settle a lawsuit in which Wiggins said he was retaliated against for blowing the whistle.
He charged that the city improperly terminated his workers' compensation benefits after he went on stress leave because his life was endangered.
A third suit is pending, in which another investigator charges retaliation stemming from the FBI probe.
Liquor Commission administrator Wallace Weatherwax said the indictments have led to stronger supervision, and that he has confidence in the inspectors who are working now.
The lawsuits do not prove wrongdoing, and it's cheaper for the city to settle them than fight the charges, he said. "We were willing to have our side proven in court, but those decisions are taken out of our hands because of the economics," Weatherwax said.
The agency may create an internal affairs unit to investigate any future corruption allegations, but it would take time, money and political support to set up, he said.
City Councilman Charles Djou said larger changes are needed. "These lawsuits are just too frequent and all too common, and the taxpayers are constantly having to shell out for this," Djou said. "It's screaming out for reform."
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
