Hannemann questions
‘Friends of City’ fund

The councilman points out that
the organization has ties to
Honolulu's Mayor Harris

By Gordon Y.K. Pang
Star-Bulletin

City Councilman Mufi Hannemann wants to know more about a nonprofit organization tied to Mayor Jeremy Harris and the city.

Friends of the City and County of Honolulu has doled out at least several hundred thousand dollars for city-related events, from Harris' 1996 inauguration dinner to co-hosting a dinner for the president of China, he said.

Hannemann has introduced a resolution requesting that the group disclose information on where and from whom it gets its funding and where the money goes.

The purpose of the organization is to "pay for nonpartisan events, receptions or functions of the City and County of Honolulu or to supplement city funds for such events with the approval of the office of the mayor . . ." according to papers filed with the IRS.

The president of the organization is Honolulu attorney Peter Char, a close friend of the mayor and his campaign assistant treasurer. The organization's secretary and treasurer is Deputy Managing Director Malcolm Tom, who until recently was Harris' budget director.

Char said the only other directors are Lynette Char, his wife and the city's deputy director of enterprise services, and Colorado-based tax attorney Michael Shea.

Hannemann said the group appears to have been set up to do the mayor's bidding and wants to see its books.

While he appreciates the donations made by the group, Hannemann said, it could give the appearance of a "quid pro quo" arrangement, or a situation in which contributors to the nonprofit might get something in return from the Harris administration.

He also asked whether city employees are seeking donations for the organization "in a manner which might be perceived as improper solicitation."

Both Harris and Managing Director Ben Lee were out of town yesterday and unavailable to respond to questions.

Carol Costa, the mayor's spokeswoman, denied any wrongdoing on the part of city employees and referred other questions to Char.

Peter Char said Lynette Char approaches him about city-related events or projects that need funding.

He said that he and Shea then decide whom to contact for donations, from government entities to private individuals.

While some of the nongovernment interests do business with the city, "a substan-tial amount of the money" is from people who do not, Peter Char said.

He declined a request for a list of donors, citing confidentiality concerns.

Char said the events and projects his group contributes to are not political or controversial.

Hannemann said that by law, any contribution over $1,000 needs to be accepted by the Council.

He said the only listing of a contribution from the organization on record at the city clerk's office is for a $5,000 exhibit to the Honolulu City Lights festival.

Larry Meacham, executive director of Common Cause Hawaii, said that he agrees with Hannemann on the issue.

"The contributions and their amounts should be public so people know what's going on and contributors know what they're getting for their contributions," Meacham said.

---

Council opens
affordable housing
to all buyers

The City Council met yesterday and approved measures that:

Allow developers to sell affordable-housing units to all prospective buyers, regardless of income, during a two-year trial period. Developers say there is a glut of affordable units; opponents say the bill hurts those truly seeking housing.

Allow prosecutors to shut down a business where three prostitution-related convictions have occurred over five years.

Restrict teen nightclubs and BYOB strip clubs. The bill will require teen nightclubs to close by 10 p.m. and remain closed until 6 a.m. It raises the minimum age to 21 for patrons of BYOB strip clubs and requires the clubs to follow all other Liquor Commission provisions regarding strip clubs.

Restrict animal solicitors by requiring that they wear signs stating they work only for donations and that they receive written consent to operate on private property. Councilman Duke Bainum says the solicitors harass visitors. One example: Photo-graphers who place parrots on tourists' shoulders, then snap their picture and demand money.

Approve Carol Costa as director of the Department of Customer Services.

Approve Herbert Kao-pua Sr. as a member of the Board of Water Supply. Kaopua, business manager for the Plumbers and Fitters Local 675, was forced to resign from the Land Use Commission following an opinion by Attorney General Earl Anzai.

---

Gordon Y.K. Pang