Geolabs gets A Kalihi-based engineering firm has agreed to pay a record $64,000 fine to settle campaign finance charges.
record fine
The engineering firm had
Watada says scrutiny warranted
broken political fundraising
laws many timesBy Rick Daysog
rdaysog@starbulletin.comIn a 14-page settlement agreement with the state Campaign Spending Commission, Geolabs Inc. admitted that its officers and their spouses made $124,700 in excessive political donations since 1996 to the campaigns of Gov. Ben Cayetano, Honolulu Mayor Jeremy Harris, Lt. Gov. Mazie Hirono, Maui Mayor James "Kimo" Apana, Big Island mayoral candidate Fred Holschuh and Honolulu mayoral candidate Arnold Morgado.
The firm, which agreed not to make any political contributions for the next four years, also admitted that it reimbursed many of its employees and their relatives for making the donations.
The previous record fine was $5,500, which the commission levied in November against local restaurant operator Alan Ho.
Ho, a member of the Honolulu Police Commission, and his restaurants gave more than $15,500 to Harris' re-election 2000 effort.
"This is by far the largest fine by the commission," said Bob Watada, executive director of the Campaign Spending Commission.
"The fine is justified by the large amount of excess contributions."
Clayton Mimura, Geolab's president, could not be reached for immediate comment.
Of the $124,700 in excessive contributions, $48,200 went to Harris' 2000 re-election while $41,500 went to Cayetano's successful gubernatorial campaign.
Hirono received $16,000 in excessive contributions while Apana netted $11,000 in over-the-limit contributions.
Geolabs, which conducts work for the city and the state, gave Holschuh $3,000 more than the legal limit and donated more than $5,000 above the legal limit to Morgado.
In total, Geolabs contributed more than $244,000 to all six candidates.
Under state law, the candidates must return the contributions to the contributors or to the Campaign Spending Commission.
Honolulu Mayor Jeremy Harris' 2000 campaign recklessly violated state campaign spending laws and should be the subject of a criminal investigation by the city prosecutor's office, the head of the state Campaign Spending Commission said. Harris donor scrutiny
warranted, Watada saysHarris officials say the investigation
unfairly harms the mayor's reputationBy Rick Daysog
rdaysog@starbulletin.comBut an attorney for Harris said the charges are part of a plan by commission Executive Director Robert Watada to single out the mayor's campaign and besmirch its reputation with "innuendo-filled statements."
The heated exchange comes as the five-member commission is scheduled to meet today to discuss a two-count complaint in which Watada alleges that the Harris campaign helped launder campaign contributions.
The complaint, which also names Harris and campaign officials Lex Brodie, Roger Liu and Peter Char as parties, accused the Harris 2000 campaign of intentionally taking contributions and booking them under false names.
The complaint did not provide specifics on the alleged campaign violations, but Watada, whose staffers and private investigators have interviewed scores of contributors under subpoena during the past six months, said that several people told the commission that they were listed as donating money to the Harris campaign when they did not.
"Certain individuals, identified as contributors, reported that ... they did not personally provide the funds for said contributions, had no knowledge of making contributions to Harris, or provided funds to other individuals for the purpose of making contributions to Harris," the complaint said.
Harris, who defeated former City Councilman Mufi Hannemann in the 2000 mayoral election, plans to run for governor this year as a Democrat.
In a news release, Brodie, chairman of the Harris 2000 campaign, denied that campaign officials broke any laws. he said Watada should be removed from office for furthering his "own political agenda."
Bill McCorriston, an attorney for Harris and Char, likened Watada's allegations to McCarthyism. He noted that the commission's complaint "is completely devoid of any facts or evidence," making it impossible to determine whether any law was violated.
McCorriston noted that Watada has unfairly singled out Harris' campaign while looking the other way with similar problems in former Maui Mayor Linda Lingle's past campaign. He noted that campaign records for Lingle, who plans to run for governor as a Republican, lists more than 129 contributions from people who did not list their occupations or employers.
State law requires candidates to list the occupations and employers of all people who donate more than $1,000 to a campaign.
"A complaint without evidence, which provides no notice of any actual charge, such that the respondents have no actual ability to respond, and which seeks to taint four individuals with criminal accusations, turns the commission's proceedings into a Star Chamber proceeding," McCorriston said in a Jan. 11 letter to the commission.
The commission began taking a close look into contributions to the Harris campaign earlier this year after the Star-Bulletin reported that the mayor's campaign raised nearly $750,000, or about a quarter of his $3 million war chest for the 2000 re-election, from people and companies linked to dozens of city contractors.
Watada said earlier that the commission is investigating 50 to 60 companies that donated to the Harris campaign. The commission has fined seven firms for giving more than the $4,000 limit to the Harris camp.