‘Stealth’ letters
of donors target
campaign reform

An architectural firm admits
its participation in a letter-writing
effort aimed at legislators

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By Rick Daysog
rdaysog@starbulletin.com

A political watchdog organization is alleging that several local government contractors are orchestrating a "stealth campaign" to halt a measure to reform the state's campaign spending laws.

In a letter sent to state lawmakers on Wednesday, Common Cause Hawaii spokesman Larry Meacham said the local companies are behind a fax and letter misinformation campaign to defeat a proposal banning government contractors from making political donations.

One of the firms is a major city contractor that has come under the scrutiny of the state Campaign Spending Commission in its investigation into Honolulu Mayor Jeremy Harris' political campaign.

"The arguments made in these writings are bogus," said Meacham. "There are some that benefit from favoritism and object to any changes, regardless of public demands to clean up the system."

The House bill, patterned after federal campaign finance laws, prohibits any company that receives a state or city contract from giving direct campaign contributions to a political candidate.

But under an amended version passed by three Senate committees last month, government contractors cannot give money to candidates for mayor, lieutenant governor and governor.

State Sen. Avery Chumbley (D, East Maui) said he's received about 10 to 15 letters a day during the past week. While the letters are not identical, Chumbley said they appear to have been taken from a fact sheet because they all raise the same objections: That the bill infringes on their constitutional rights to free speech.

"It's obviously a concentrated effort to express concern," he said. "But I can't say for sure that it's coming from one place."

Meacham said the letters rely on misinformation. He noted that the U.S. Supreme Court has upheld the constitutionality of an identical federal law banning contributions from government contractors.

Meacham noted that most of the faxes were sent from the same three fax numbers and many of the letters were mailed with the same postage meter stamp, implying they were sent from the same address.

Seven letters came from officers of the firm of Anbe Aruga Ishizu Architects Inc., which is a major state and city contractor, according to a Star-Bulletin review of state and city public records. Letter writers included:

>>	Edmund Chang, a company director and senior vice president
>>	Dwayne Shinbo, a firm vice president
>>	Jon Aruga, also a company vice president
>>	Company Secretary and Treasurer Joyce Matsuda
>>	Corporate director and senior vice president Harold Inouye, and
>>	Clarence Izuo, an Anbe Aruga director and senior vice president.

Hachiro Ishizu, president of Anbe Aruga, could not be reached for comment. But Izuo confirmed that company officials asked employees to draft the letter.

Izuo said workers oppose the bill because it unfairly prohibits people who work for employee-owned firms with government contracts from making political donations.

In his letter, Izuo said he and his co-workers would be restricted in making contributions since they would qualify as part-owners. Under the current version of the bill, donations from part-owners are counted as company donations.

"We were asked by someone in the company to write this letter," Izuo said.

Since 1996, the Anbe Aruga firm has received more than eight city nonbid contracts for more than $1 million, including an October 1999 city contract for $200,000 to design a new swimming pool at Mililani District Park. That contract was later amended, adding $11,500 in costs.

The Campaign Spending Commission said it recently began making inquiries about the firm after it donated $2,000 to the Democratic National Committee in 2000. Bob Watada, the commission's executive director, said the firm is one of about a dozen firms solicited by Harris when he raised money on behalf of the DNC two years ago.

The commission recently drafted a formal complaint alleging the Harris campaign failed to report its fund-raising activities. Harris officials denied wrongdoing and have sued the commission in federal court.

State Sen. Cal Kawamoto, chairman of the Transportation, Military Affairs and Government Operations Committee, said he plans to amend the bill to address concerns raised by employee-owned companies. He said workers will have to own 25 percent of their company before their donations are counted as company donations.

"These are legitimate concerns," said Kawamoto (D, Waipahu).

Watada questioned why none of the letter writers submitted testimony during Legislative hearings. He said he believes the firm should raise its objections in an public forum where they can be openly debated.

"These people operate behind the scenes when they should be testifying in an open hearing," he said. "That's how the system should work."

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Common Cause Hawaii