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City & County of Honolulu

Harris donor
pleads not guilty

He is charged with money
laundering in Harris' campaign


By Rick Daysog
rdaysog@starbulletin.com

The top executive of one of the state's largest engineering firms pleaded not guilty today to violating the state's spending laws.

Michael Matsumoto, chief executive officer of SSFM International Inc., appeared before state Circuit Judge Dan Kochi to enter his plea to charges that he laundered tens of thousands of dollars in campaign contributions to Honolulu Mayor Jeremy Harris' 2000 campaign.

Matsumoto also pleaded not guilty to a misdemeanor charge of making a false-name contribution.

He is the first person charged criminally by the prosecutor's office in its yearlong investigation into the Harris campaign.

Matsumoto had no comment and his attorney Howard Luke said he disagreed with prosecutors for filing the money laundering charge against his client. He declined further comment.

Deputy Prosecutor Stephen Niwa said he wasn't surprised by the plea but noted that prosecutors have a signed plea agreement by Matsumoto. He declined to elaborate.

Under state law, Matsumoto faces up to 10 years in jail and a fine of up to $25,000 for the money laundering charge. Making a false-name contribution is a misdemeanor punishable by up to a year in jail and a $2,000 fine.

State campaign spending records show that friends and relatives of SSFM's officers have given more than $200,000 to isle Democrats during the past six years. More than $100,000 of that went to the Harris campaign, while former Gov. Ben Cayetano's 1998 re-election bid received more than $70,000.

Under state law a donor can give no more than $4,000 to a mayoral candidate and $6,000 to a gubernatorial candidate during a four-year election cycle.

SSFM is the city's consultant for the $45 million Central Oahu Regional Park project, which has incurred millions of dollars in cost overruns. City records reviewed by the Star-Bulletin showed that SSFM's nonbid consulting contract for the sports complex soared to $3.2 million from $932,000, as a result of four amendments.

City officials have said political donations play no role in the awarding of nonbid contracts.

SSFM Vice Presidents Norman Kawachika, Clayton Wong and Warren Sato and June Takushi, the wife of SSFM Vice President Lee Takushi, are to appear in District Court tomorrow for arraignment.

They are charged with making false-name contributions to the Harris campaign.

Matsumoto's trial is set for the week of Feb. 24.



City & County of Honolulu


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