A joint Senate committee has recommended confirmation of Ted Liu as state business director after Liu addressed the panel's concern over potential conflict-of-interest issues. Senate panel approves
new state business director
By Pat Omandam
CORRECTION
Friday, March 21, 2003» Ted Liu, state Business, Economic Development & Tourism director, has been on the job since Jan. 10. A story on Page A3 Wednesday gave an incorrect start date.
The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.
pomandam@starbulletin.com
Liu, picked by Gov. Linda Lingle to head the state Department of Business, Economic Development and Tourism, has been on the job since March 10. The Senate Economic Development and Tourism committees delayed a Feb. 27 vote on his nomination until yesterday.
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His confirmation now goes before the Senate for a vote.
The 47-year-old businessman, who co-founded the private equity firm PacifiCap Group, assured senators yesterday he has divested himself of ownership of the company and has no economic interest in it. That became an issue after senators learned PacifiCap won a $3 million venture capital investment from DBEDT in 2001.
Liu added he will recuse himself from voting if and when PacifiCap appears before the Hawaii Strategic Development Corp., which is overseen by his department. The company develops investment programs to stimulate economic growth, employment and diversification and is overseen by an 11-member board, with the DBEDT director as an ex-officio member.
"This is more than what I understand the state ethics laws require," Liu said.
Nevertheless, Senate Tourism Chairwoman Donna Kim (D, Kalihi Valley-Halawa) said Liu's experience with PacifiCap could create the perception that the company has an edge in business dealings with DBEDT.
Liu admits it will be an balancing act when it comes to PacifiCap, but says it's only a perception because he has no real conflict of interest.
Sen. Sam Slom (R, Hawaii Kai) won assurances from Liu that he will use his best judgment, ethics and integrity not to compromise his position as director.
Meanwhile, the joint panel continued to receive positive support for Liu from the business community. The Honolulu Japanese Chamber of Commerce, the National Federation of Independent Business-Hawaii and others supported his nomination.
Department of Business, Economic Development & Tourism
