Isle contractor pleads
guilty to overbilling, implicates airport official
A painting contractor has pleaded guilty to overbilling the state $25,000 for work at Honolulu Airport in a bid-rigging scheme involving former airport officials, their friends and business associates.
In return for the jobs, Herbert Hirota, president of Hirota Painting Co., said he gave between $5,000 and $7,000 in political contributions solicited by an airport official.
Hirota, 51, waived indictment yesterday and pleaded guilty to first-degree theft in a criminal complaint, punishable by a maximum of 10 years' imprisonment and fines of up to $25,000.
His attorney, Raymond Okuma, said yesterday he expects to file a motion to defer Hirota's plea, which would enable his client to remove the charge from his record if he abides by court-imposed conditions. Hirota's motion is tentatively set to be heard July 21.
Hirota, who has yet to be arrested and booked, was released on his own recognizance and is expected to turn himself in within 30 days to the Department of Public Safety.
Hirota is the fifth individual to plead guilty in the scheme -- characterized as the state's largest waste of taxpayer dollars, likely surpassing the $5.5 million Ewa Villages relocation scandal.
A week ago, electrical contractor Bert Shiosaki pleaded guilty to overbilling the state airports $145,000 and kicking back $8,100 in political donations sought by airport officials.
Hirota has agreed to cooperate with state and federal investigators against other individuals who may be involved in the scheme. He also agreed to pay back $25,000 in overbilling.
Hirota and his attorney declined to comment yesterday.
But in the plea agreement filed in court yesterday, Hirota admits that between July 1997 and May 2001, he overcharged the state Airports Division to cover the costs of donations sought by Dennis Hirokawa, maintenance superintendent for the Airports Division, who oversaw the awarding of contracts for the airport.
Hirota said he was asked once or twice a year to donate money and was under the impression they were for political campaigns. "I gave Hirokawa the money he asked for because I was afraid that not giving the money ... would have dire consequences for my company continuing to work at the airport," he said.
Hirota began doing small contract work -- projects costing less than $25,000 that required price quotes from bidders instead of sealed, formal bids -- at Honolulu Airport beginning in 1997, at the request of Hirokawa, according to the agreement.
He said Hirokawa or an airport inspector would call him for quotes on a number of jobs.
Hirota said Hirokawa expected him to submit two other quotes to comply with the state procurement laws on small contracts. Hirota would ask two other painting contractors whom he knew to sign quotes he prepared for them that were higher than his. He said he was able to obtain jobs under the scheme "because of the direction, acquiescence and cooperation of Dennis Hirokawa."
Hirokawa and his attorney have declined comment on his alleged involvement.
"If you look at the people involved, they were somehow associated with people at the airport who had control over the contracting process," said Deputy Attorney General Larry Goya.