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Isle firm’s CEO booked
in campaign fraud case



By Rick Daysog
rdaysog@starbulletin.com

The chief executive of a local engineering firm linked to more than $100,000 in allegedly illegal campaign contributions to Honolulu Mayor Jeremy Harris has surrendered to authorities.

Michael Matsumoto, SSFM International Inc.'s chief executive officer, was booked yesterday at Honolulu Police Department headquarters on suspicion of money laundering and misdemeanor campaign finance violations.

Matsumoto, who was not charged, was released on his own recognizance.

Howard Luke, Matsumoto's attorney, could not be reached for comment. But Luke previously stated that Matsumoto was cooperating with the city prosecutor's investigation into the awarding of nonbid city contracts to large political donors.

Matsumoto was the target of a special grand jury that was scheduled to meet Nov. 27. But the hearing was abruptly canceled so that Matsumoto and city prosecutors could work out the details of a plea agreement.

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 campaign 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. Donors also are barred from giving money under false names.

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 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.


Campaign Spending Commission



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