Posted on: Saturday, November 13, 2004
Hirata, company face fine of $127K
By Johnny Brannon
Advertiser Staff Writer
The state Campaign Spending Commission voted yesterday to fine a Honolulu engineering company and its president $127,500 for allegedly funnelling nearly $100,000 to seven Hawai'i politicians illegally.
Ernest K. Hirata, and a company that bears his name, have not signed a conciliation agreement that includes the penalty, however, and the fine could increase.
Hirata's attorney, Keith Kaneshiro, said he believes the company's name should be taken off the agreement. But the commission voted against such a change.
Robert Watada, the commission's executive director, said the dispute could further lengthen an investigation that lasted more than two years.
"They were not very cooperative," Watada said. "It took about 30 subpoenas to get the information we wanted."
He said the fine "could go up substantially" if the company refused to sign the agreement. Hirata could not be reached for comment yesterday. Kaneshiro said it is unfair that the commission has approved earlier agreements that allowed other firms to avoid being named in such documents.
"We have to go back to negotiations," Kaneshiro said. "I can't see changing the rules in the middle of the game."
The case is the latest to emerge from a lengthy investigation that has produced fines against dozens of companies and triggered a criminal probe that continues.
Hirata was fined $2,000 in May after pleading no contest to a misdemeanor in connection with illegal donations to Mayor Jeremy Harris.
Hirata and the company made illegal donations to Harris and six others through various relatives and friends since 1996, according to documents filed with the commission. None of the politicians has been accused of wrongdoing.
Harris' campaign received the largest amount, totalling $41,120, according to the commission. Others who allegedly received tainted money were:
• Former Gov. Ben Cayetano, $22,450; • Former City Council chairman Arnold Morgado, $10,000; • Former Lt. Gov. Mazie Hirono, $9,250; • Former Maui Mayor James "Kimo" Apana, $9,000; • Mayor-elect Mufi Hannemann, $5,350; • Former gubernatorial candidate D.G. "Andy" Anderson, $1,000.
