AT&T Corp. is paying Gov. Ben Cayetano's
expenses on a trip to Atlanta: airfare,
hotel and a pass to some Olympic events.

But the commission won't likely go after Cayetano for accepting air fare to Atlanta and hotel accommodations, the rulings suggest. That is because Cayetano can say he's meeting with corporate leaders to lure business to Hawaii.

Daniel Mollway, Ethics Commission executive director, said the panel's rules prevent him from discussing specific cases, but he pointed to similar situations from the past.

The commission, he said, has generally found it acceptable for state officials to go on trips and have private companies pay for "reasonable expenses" - air fare, hotel and meals - if they have a legitimate state purpose for going.

But even if state officials have a legitimate reason for their trips, they can't accept gifts if those gifts don't have a direct link to the purpose of the trips, Mollway said.

"A company official might say, 'Here's two tickets to a Las Vegas show and have a nice time.' We've told people that that kind of thing is not acceptable," Mollway said. "There is no reason it has to be received to carry out the state's purpose. In those kinds of cases, it appears to be a personal gift.

"If it is something nominal, like a promotional mug, that's OK. But we would even have trouble with someone getting two $15 tickets to a concert."

Cayetano left for Atlanta on Wednesday as a guest of AT&T, an official corporate sponsor of the Olympic Games, which begin today. The telecommunications giant is seeking to become a major player in Hawaii's local and interisland phone markets.

While in Atlanta, the governor is to attend a telecommunications symposium and a forum, and meet with Michael Antieri, AT&T Pacific region president.

Cayetano said in a statement: "Telecommunications and sports tourism are two great niche markets for Hawaii, and the Summer Olympics is an ideal venue to make business contacts with sports organizers and corporate leaders from around the world."

Cayetano aides said they did not know the value of the air fare, accommodations and the pass to Olympic events provided by AT&T. A San Francisco-based AT&T official didn't return a telephone message left by the Star-Bulletin.

One of Cayetano's aides said the governor would likely attend the Games' opening ceremonies. The Atlanta Journal-Constitution reported that premium tickets for the ceremonies cost $636, while the "nosebleed seats" farther and higher from the action cost $212 and $424.

Cayetano's Olympics pass is not for all the events but for a few in which he expressed interest, said Cayetano spokeswoman Kathleen Racuya-Markrich.

"I know he's more interested in making the business contacts than in seeing the events," she added.

Racuya-Markrich said Cayetano didn't travel to the four-day National Governors' Association meeting in Fajardo, Puerto Rico, which concluded the day prior to his departure, because Cayetano felt he could do more good for the state in Atlanta.

Desmond Byrne, chairman of the watchdog group Common Cause Hawaii, said Cayetano should adhere to a more stringent standard than the Ethics Commission's and not accept any freebies from companies doing business in the state.

That would set an example for other state officials and eliminate the appearance of conflicts of interest, Byrne said.

"If other government employees see the governor accepting gifts, they can think, 'What's wrong with my receiving something?' " Byrne said.

Cayetano has said he sees nothing wrong in traveling at the expense of the private sector if he's going to be promoting Hawaii and seeking economic development. That saves taxpayers money, he maintains.

Cayetano has accepted free private jet travel from Dole Food Co. chairman and chief executive David Murdock to appeal to the Rochester, Minn.-based Mayo Clinic to establish a satellite here.

Eric Tom, vice president and general manager of Long Distance/USA-Sprint, said he's not concerned that competitor AT&T is hosting Cayetano at the Olympics.

"The only thing that counts is the decision-making process (by the state Public Utilities Commission), and everybody has been treated fairly," Tom said.

GTE Hawaiian Tel said it had no position on Cayetano's trip.