Newswatch

By Star-Bulletin Staff

Monday, March 9, 1998

Highways
division
taken to task

By Mike Yuen
Star-Bulletin

The fiscal operations and record-keeping of the state Department of Transportation's highways division are so seriously deficient that the state could not conduct an audit of the division.

That conclusion was reached by state Auditor Marion Higa, who, in a report released today, also found that the division failed to follow the state's procurement code.

The division generates $325 million to $400 million in revenues annually and spends between $300 million to $390 million each year.

The auditor said the division failed to prepare and post a public notice that it was extending a sole-source contract.

This meant that other vendors who might be equally qualified to perform the services were denied an opportunity to object to the contract.

The contract in question - totaling $997,500 and in two phases - involved KPMG Peat Marwick LLP, the accounting firm that was hired to "to develop and install a comprehensive" accounting and control system for the highways division.

The first phase, started in 1990, was to have been completed in 90 days, but it took more than six years to complete.

At the start of fiscal 1997, the second phase had yet to be implemented, Higa reported.

"Since the total fees of $997,500 for both phases was used to pay for Phase I, the original sole-source contract was amended to add an additional fee of $1.5 million for Phase II," Higa's audit stated.

State Transportation Director Kazu Hayashida said there are significant accounting-related problems in the highways division that need to be corrected.

He said he is now working to make those corrections.

But he disagreed with Higa's finding that the division failed to comply with the procurement code.

"Since the original contract dated June 29, 1990, fell under the old procurement law, the amendment to the sole-source contract date April 18, 1996, was 'grandfathered' in," Hayashida stated.

"Therefore, the 'notice of amendment to sole-source contract' was not required to be completed, submitted to the chief procurement officer and posted."

He added that "the original contract was designed to be cost-effective by having one consultant provide all services."

Welfare fraud charge brought against woman

Lydia Bentocino Pagatpatan has been charged with welfare fraud in receiving benefits of more than $65,000.

An Oahu grand-jury indictment is for first-degree theft.

She will be arraigned, and a trial date will be set.

Anyone with information on welfare fraud should call the state Department of Human Services Fraud Hotline, 587-8444.

Ariyoshi to be lauded for service to Hawaii

The Japanese Cultural Center of Hawaii will honor former Gov. George Ariyoshi at its annual testimonial dinner March 19.

The center is honoring Ariyoshi, the first Japanese-American governor, for his contributions and lifelong service to the people of Hawaii.

"A Celebration of Lifetime Achievement," a dinner, will be held at the Hilton Hawaiian Village Coral Ballroom.

Tables cost $5,000, $3,000 and $1,000. Individual tickets are $100.

Reservation deadline is Thursday. Call 945-7633 for information.

UH study seeking out HIV-positive women

Women who are HIV-positive are being sought for a long-term University of Hawaii study to gain understanding of women living with HIV and AIDS.

The School of Social Work will follow changes in the women with interviews every four months to examine their emotional well-being, adjustment and hope.

Participants will receive $50 per interview, free transportation and child care. Involvement may be canceled at any time.

Women with HIV are urged to participate to help others living with the virus. Recruitment will continue until December.

For more information, call Charles W. Mueller, 956-6127.

See expanded coverage in today's Honolulu Star-Bulletin.
See our [Search] [Info] section for subscription information.

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Police/Fire


By Star-Bulletin staff

Assault case now homicide after man in coma 4 years dies

A Vietnam War veteran, who was brutally beaten in Kalihi by five males during a robbery, died Saturday after spending 47 months in a coma at Queen's Hospital.

James Insco, 59, suffered head, neck and spinal injuries from a beating that occurred on April 17, 1994, at 100 N. School St., police said.

He was pronounced dead at 7:25 p.m. Saturday.

The case has been reclassified from attempted murder to a homicide.

Four adults and a juvenile were arrested in 1994 and the case was forwarded to the prosecutor's office.

Waikele car crash sends man to hospital in critical condition

A 42-year-old man injured in a car crash early Saturday in Waikele remains in critical condition at Queen's Hospital.

Police said speed and alcohol may have been contributing factors in the 1:30 a.m. crash on Paiwa Street, about 150 feet south of Lumiauau Street.

Suspect found in bathroom of woman's house is charged

A 46-year-old man with no permanent local address has been charged with misdemeanor counts of harassment by stalking and first-degree criminal trespassing after a Wailupe woman found him sitting in a bathroom of her home, police said.

Douglas Snell is being held in lieu of $2,000 bail.

In other news...

A man and woman were critically injured today in a two-car crash at Fort Weaver and Geiger roads in Ewa.

Both were flown to Queen's Hospital. The crash was reported at 9:49 a.m.

See expanded coverage in today's Honolulu Star-Bulletin.
See our [Search] [Info] section for subscription information.