KEN IGE / KIGE@STARBULLETIN.COM
City Prosecutor Peter Carlisle vowed yesterday at a news conference to clean up Hawaii's campaign financing system.
Carlisle vows The conviction of one of the state's top engineering executives represents a "remarkable shot across the bow" to targets of the criminal investigation into Honolulu Mayor Jeremy Harris' political campaign, city Prosecutor Peter Carlisle said.
to end political
corruption
The conviction of a key Harris
fund-raiser is a first step, he saysBy Rick Daysog
rdaysog@starbulletin.comSpeaking at a news conference yesterday, Carlisle vowed to clean up Hawaii's political system in which government contractors contribute tens of thousands of dollars in illegal campaign donations to local politicians.
"This is not the way politics should be conducted in the state of Hawaii, and this office is going to do everything in its power to make sure this is not the way things are going to occur in the future," Carlisle said. "I can guarantee you that this is the beginning of our office's efforts to stop this kind of conduct and clean up the political system we have in this state right now."
Yesterday, SSFM International Inc.'s Chief Executive Officer Michael Matsumoto pleaded no contest to a charge that he laundered $139,500 in campaign contributions to Honolulu Mayor Jeremy Harris' campaign.
The 57-year-old Matsumoto also entered a no-contest plea to a separate misdemeanor charge that he made dozens of campaign contributions under false names.
The conviction is the first in city prosecutors' year-long criminal investigation into allegations that the Harris administration awarded millions of dollars in nonbid city contracts to large political donors.
Matsumoto and his attorney Howard Luke had no comment yesterday after they appeared before Circuit Judge Karl Sakamoto to change his plea. Matsumoto previously pleaded not guilty.
As part of a plea agreement, prosecutors will ask for probation and will not seek jail time for Matsumoto.
Prosecutors also will drop potential theft charges against Matsumoto and will not pursue criminal charges against SSFM and Matsumoto's friends and relatives, in whose names he laundered the campaign contributions.
Matsumoto, meanwhile, has agreed to cooperate with Carlisle's investigation.
Deputy Prosecutor Randal Lee would not comment on testimony that Matsumoto may provide.
Lee also declined comment when asked if there is evidence that Matsumoto or SSFM obtained favorable treatment by the city officials in exchange for city contracts.
"I don't think it would be appropriate to comment on pressure or motivation," Lee said. "(But) if you look at the sizable amount of money over the campaign spending limits, the sheer amount alone suggests that there was something compelling to make that sizable donation."
City Corporation Counsel David Arakawa said political contributions play no part in the awarding of city contracts. He said his office has reviewed all city contracts and has found that they were properly procured.
SSFM is a major contractor for the city and serves as its 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 $3.7 million from $932,000 as a result of four contract amendments.
According to records compiled by the state Campaign Spending Commission, the SSFM firm has given about $400,000 in political donations to more than half a dozen local political candidates during the past decade.
Nearly half of that went to the Harris campaign, while former Gov. Ben Cayetano's 1998 re-election bid received more than $100,000. Matsumoto alone is linked to more than $139,500 in contributions to Harris.
"You can tell this scheme is obviously premeditated, coordinated and deliberate," Carlisle said.
Under state law, an individual or company can give no more than $4,000 to a mayoral candidate during a four-year election cycle. They also cannot give campaign contributions in the names of other individuals.
"The purpose of this work is very simple: so that this stuff from this day on stops going on," Carlisle said. "It will serve as a remarkable shot across the bow for anybody who thinks of doing this."
Department of the Attorney General
