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The Honolulu Advertiser

Posted on: Sunday, October 24, 2004

Where they get their money

 •  Bainum retains lead over Hannemann
 •  Candidates promise safer, less congested Honolulu

By Jim Dooley
Advertiser Staff Writer

From Jan. 1, 2000, through Sept. 18, 2004, the mayoral campaign of Mufi Hannemann outstripped competitor Duke Bainum's campaign in virtually every category of political fund raising: more donations from individuals, corporations, unions, political action committees, non-Hawai'i residents, and even total number of donations worth $4,000 or more, an analysis of campaign finance reports shows.

Duke Bainum

Mufi Hannemann
But Bainum's personal wealth allowed him to loan his campaign $2 million and to give it another $425,000 outright since the campaign started, the records show. That's nearly $1 million more than the Hannemann campaign received from individual donors, $1,385,566, as well as one personal loan of $90,283 from Hannemann himself during the same period.

Financial records for the last month of the campaign weren't filed until late Friday and are not included in this analysis. But the newest report does follow the same money trends: Hannemann received $275,000 in contributions and loaned his campaign $75,000 in the last month of the campaign, but Bainum trumped him with $320,000 in loans and some $110,000 in contributions.

Hannemann did open the campaign in January 2000 with a clear financial advantage, reporting $225,483 in his war chest, while Bainum reported only $6,784 in available cash.

But that edge was gone after Bainum began making loans and cash gifts to his campaign in 2001.

"It's very expensive to run a campaign and Mufi is running against someone with immense financial resources," said Elisa Yadao, spokeswoman for the Hannemann campaign.

Bainum has said he made loans to jump-start his campaign when his name-recognition was low. His personal financial resources mean that his campaign is not beholden to special interests and he attracts smaller donations from "grassroots" supporters, Bainum said earlier this year.

"This campaign is, and has always been, about positive change, independence and serving the people's interest rather than the special interests." Bainum said Friday.

Campaign records do show that the Bainum campaign received 667 donations worth $100 or less, totalling $50,531.

Hannemann reported receipt of 417 contributions worth no more than $100, totalling $34,497.

But Hannemann raised more money from almost all other possible donors, according to campaign records.

• From corporate contributors: Hannemann received 566 donations worth $481,124. Bainum's campaign reported 191 corporate donations totalling $122,843.

• Political action committees and unions: Hannemann raised $79,704 from 71 donors. Bainum's totals were 23 donations worth $23,912.

• Donations worth between $1,000 and $4,000: Hannemann received a total of 554 worth $765,274. The Bainum camp reported 235 donations in this category with a total value of $315,814.

• Records of out-of-state contributions show that Hannemann received more individual donations but Bainum's were worth more. Contributors with non-Hawai'i addresses gave 75 donations to Bainum worth $187,350. Many of the donors were Bainum relatives and friends from Arkansas and Maryland. Hannemann received 129 contributions with a total value of $159,185. The largest donation was $20,000 from his sister in New York.

Each campaign received a batch of out-of-state donations within a brief period of time.

The Hannemann campaign received $21,250 from 32 Southern California donors Sept. 22 to 24 last year. Yadao said some of the money came from Hannemann friends and associates and others came from supporters of Los Angeles County Supervisor Don Knabe.

Hannemann and Knabe met at a cocktail party in Southern California last year, became friendly and as a result, some of their supporters gave campaign donations to the other's campaign, Yadao said.

The Hannemann campaign returned one of those donations, $4,000 from Southern California businessman Horacio Vignali, after learning that Vignali had lavished hundreds of thousands of dollars in political donations on national and California politicians in 2000 and 2001 as part of a campaign to get his son Carlos pardoned for a federal drug trafficking conviction. Shortly after President Bill Clinton pardoned Carlos Vignali, Horacio Vignali paid $200,000 to Clinton's brother-in-law, Hugh Rodham, who had been lobbying for the pardon. Rodham later returned the money.

The Bainum campaign reported receiving nearly $13,000 from 12 donors in Georgia on May 19 of this year. The Hannemann campaign has tried to paint those donations as being from "special interests" looking to do business with the city if Bainum is elected.

But Bainum spokeswoman Ruth Ann Becker said most of the donors already had personal and professional ties to Hawai'i before ever giving to the Bainum campaign.

An analysis of one last category of donations, those worth $4,000 and more, showed Bainum with a huge advantage. He reported receiving 48 such contributions worth a total of $609,000, including eight donations from himself worth $425,000. Bainum's mother gave the campaign $30,000 and another close relative kicked in $14,000. Donors not related to a candidate are limited under state law to giving no more than $4,000 apiece.

The Hannemann campaign reported receiving more individual donations worth $4,000 and above: a total of 56. But their combined value was $236,000, about a third of what the Bainum campaign received. Hannemann received only one donation worth more than $4,000 — the previously mentioned $20,000 from his sister in New York.

Reach Jim Dooley at jdooley@honoluluadvertiser.com or 535-2447.