Local firm to pay
$31,000 fine for
donations to gov
and mayor

Thermal Engineering agrees to
settle state allegations
of illegal contributions

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By Rick Daysog
rdaysog@starbulletin.com

A local engineering firm has agreed to pay $31,000 to settle charges by the state Campaign Spending Commission that it gave tens of thousands of dollars in excessive political donations to the campaigns of Honolulu Mayor Jeremy Harris and Gov. Ben Cayetano.

Without admitting or denying guilt, Thermal Engineering Corp. agreed to pay the second highest fine ever levied by the commission, which alleged that the company made about $40,000 in illegal campaign contributions.

Bob Watada, executive director of the commission, said that Thermal Engineering and several of its employees gave roughly $55,000 in contributions to various local campaigns since 1996.

Of those contributions, Watada said the Kalihi-based company gave about $20,000 in over-the-limit contributions to Cayetano's gubernatorial campaign and about $16,000 in excessive donations to Harris' 2000 re-election campaign.

Most of those contributions were made in the names of Thermal Engineering employees, who were given bonuses to cover the donations, Watada said.

Patricia McHenry, Thermal Engineering's attorney, said the company believed it was in compliance with state campaign finance laws when the contributions were made.

She added that company officials checked with the commission several times to see if they were in compliance with state laws.

"They thought they were acting in good faith in making these contribution," McHenry said. "It was simply that the commission viewed this differently."

Under state law, a contributor is limited to giving $4,000 for a mayoral race and $6,000 for a gubernatorial race.

A former Cayetano campaign official had no comment. Ruth Ann Becker, a spokeswoman for the Harris campaign, also declined comment.

Last month, the engineering firm Geolabs agreed to pay $64,000 to settle charges that it made more than $124,000 in excessive contributions to the campaigns of Cayetano, Harris, Lt. Gov. Mazie Hirono, Maui Mayor James "Kimo" Apana, Big Island mayoral candidate Fred Holschuh and Honolulu mayoral candidate Arnold Morgado.

In total, Geolabs and their employees donated more than $244,000 to all six candidates.

Thermal Engineering and Geolabs are two of more than 50 firms under investigation by the commission for political donations.