‘Mover’ bilked city
of big bucks

Officials say a relocation
that didn't happen cost hundreds
of thousands of dollars

By Gordon Pang
Star-Bulletin

The city paid hundreds of thousands of dollars to a bogus moving company, for a move that was never made, to relocate a business to make way for the bus headquarters on Middle Street, according to police and prosecutors.

A 75-year-old Waialae man, arrested last week in connection with the relocation of a business in 1992 or 1993, was booked on suspicion of first-degree theft, illegal ownership of a business and money laundering.

Prosecutors have made 19 arrests in the questionable disbursement of relocation funds involving the Ewa Villages project, and have acknowledged that they have been looking at relocation funds used in other city development projects.

The arrest tied to the Middle Street project was the first involving a non-Ewa Villages move. But Lt. Dan Hanagami, the detective leading the investigation into the relocation fund, said there will "definitely" be more arrests in connection with the project.

"We're looking at three moving companies involved," Hanagami said.

"One was a legitimate move, but we don't know which one."

According to a police report, the Waialae man arrested last week told authorities he became a bookkeeper for a moving company that existed only on paper and that he received more than $500,000 for jobs never done.

Hanagami would not say whether the Middle Street investigation centers on Michael Kahapea, the fired city housing official police believe masterminded the Ewa Villages scheme.

"It involves a city official, but we're still doing the internal investigation," he said.

Deputy Prosecutor Christopher Young said, "We feel funds were misappropriated there also."

The Middle Street move, he said, "came about because the bus yard needed to move from Alapai Street to the location where they are now." Young said it's difficult to tell how many people will be charged or when that may occur.

Yesterday, Housing Department employees appeared before an investigative grand jury at Circuit Court.

Prosecutors have sealed files pertaining to Ewa Villages and other city projects including those in the Housing Department's Property Management Branch.

City Council asks running financial reports on money that's due By Lori Tighe Star-Bulletin The City Council doesn't want to be surprised by another multimillion-dollar debt that goes uncollected. The Council asked the city yesterday to provide a quarterly report on receivables, including taxes, rents, fines, grants, fees, interest earnings, licenses and permits, charges, sales, recoveries and contributions. "This is really important, so we don't get into another Harbor Court," said Councilman John Henry Felix. "The city seems willing to work with us on this." Felix referred to the $10.5 million debt owed by Harbor Court Developers to the city. "It's surprising this kind of periodic reporting in a timely manner was not done," said Councilman Andy Mirikitani. This is the first time the Council has taken the initiative to put a process in place to better monitor money owed the city, Felix said. City Council members recently criticized the mayor's administration for failing to collect the Harbor Court debt, and for not telling them about the delinquency. Harbor Court Developers recently paid the city $2.7 million for back lease rent. The city finance director agreed yesterday to give the Council a quarterly report on its debtors. "We have taken more aggressive steps to collect money owed to the city, especially in these tough economic times," said Roy Amemiya, finance director.

Mirikitani seeks ethics
ruling in liquor fuss

By Gordon Pang
Star-Bulletin

City Councilman Andy Mirikitani has taken his case against the Liquor Commission to the Ethics Commission.

Mirikitani yesterday said his complaint alleges that Liquor Administrator Wallace Weatherwax and the commissioners violated "state ethics laws, open government laws and laws prohibiting illegal ex parte communications with liquor lobbyists and bar applicants."

He also accused Weatherwax of "lying" to him by misrepresenting Prosecuting Attorney Peter Carlisle's stance on an issue.

Weatherwax and the five-member commission fired off a letter to Mayor Jeremy Harris and Council Chairman John DeSoto last week accusing Mirikitani of "unethical, unprofessional and inappropriate behavior" for yelling at Weatherwax during a commission meeting.

The commission called on Harris and the Council to condemn Mirikitani's actions.

They sent a similar letter to the Office of the Disciplinary Counsel. Mirikitani is an attorney.

Council Chairman John DeSoto said Mirikitani erred and should have behaved more professionally. But he said he has no authority to reprimand or censor Mirikitani based on the information he was given.

Commission Chairman Clyde Eugenio said yesterday: "As far as I know, his (Mirkitani's) allegations are entirely false."

Eugenio declined further comment. "I want to see the complaint first," he said.

Weatherwax was not at work yesterday and could not be reached for comment.

Mirikitani refused to give the complaint to the Star-Bulletin.

Ethics Commission staff advised him to keep the matter confidential, he said.

Ethics Commission staff said it could not confirm nor deny receipt of any complaint.

Mirikitani said Weatherwax told him that he would recommend against approval of a Mirikitani proposal, based on opposition from the prosecutor, to require the Liquor Commission to interview those arrested for drunken-driving about where they had been drinking.

Mirikitani said he spoke to Carlisle the next day and was told there was no such opposition.

Carlisle yesterday confirmed that Weatherwax "has never talked to me about this subject" and that he is not opposed to Mirikitani's plan.

Mirikitani said he has "documented proof" of "multiple" instances in which Weatherwax and "several members of the commission" met illegally with applicants for liquor licenses.

In their letter to Harris and DeSoto, the commission members said Mirikitani's actions were an "abuse of the privileges and authority of his office disgraceful, probably unethical, and an embarrassment to the city."