Honolulu police have opened a felony theft investigation in connection with the loss of more than $25,000 in city parking fees after an internal audit last summer uncovered that money was missing.

A woman who worked for Standard Parking, a national company contracted by the city to handle parking fees at Kukui Plaza, was arrested March 13 at her 'Ewa Beach home, police said.

She was arrested on suspicion of first-degree theft and is cooperating with the investigation, police said. No charges have been filed.

Honolulu Police Department Capt. Frank T. Fujii said police have opened a theft case but would not comment further. First-degree theft is a felony punishable by up to 10 years in prison and a $10,000 fine.

City officials discovered money missing after a supervisor in charge of collecting parking fees reported in March 2007 that there was a large discrepancy between projected and actual collections.

In August, Mayor Mufi Hannemann asked police to look into the loss of an undisclosed amount from fees collected from city-owned parking structures during the previous two years.

"Mayor Hannemann has always underscored a zero-tolerance policy for corruption or malfeasance, and we will cooperate fully with HPD and await results of the ongoing investigation," said Jeff Coelho, city managing director, who declined further comment citing an ongoing criminal investigation.

Officers have yet to determine how much was stolen but believe the thefts may have been happening for more than two years.