Prosecutor lauds fines
for Towill executives
City prosecutors said they scored one of the most significant victories in a two-year investigation into Mayor Jeremy Harris' campaign with yesterday's no-contest pleas by present and past executives of one of the state's largest engineering firms.
Donald Kim, ex-chairman of R.M. Towill Corp. and a former University of Hawaii regent, and Towill President Russell Figueiroa pleaded no contest to misdemeanor charges of making illegal political donations to the Harris campaign and were fined $4,000 by state District Judge Bert Ayabe.
"They're at the top of the pay-to-play food chain," said Bob Watada, executive director of the state Campaign Spending Commission. "They control who gets jobs and who gets the resources of the community."
Deputy Prosecutor Randal Lee said the Towill firm is one of the largest contributors to the Harris campaign and has been a major player in Hawaii's political system for more than two decades.
Lee declined to estimate the amount of money allegedly funneled by the Towill firm to the Harris campaign, saying most of the contributions involved cash disbursements. But he noted that the firm has received significant amounts of nonbid state and city contracts since the 1970s.
"This pattern has been continuing for more than 25 years," Lee said.
A Star-Bulletin study in October found that Towill employees and their relatives contributed more than $80,000 to the Harris campaign since 1996 while company subcontractors, business associates and people linked to those firms gave another $200,000 to the Harris campaign.
During the same period, the Towill firm has received more than $30 million in nonbid city work.
Under state law a donor can give no more than $4,000 to a mayoral candidate during a four-year-election cycle. They also cannot contribute money under false names in order to circumvent the $4,000 limit.
Renee Yuen, attorney for Figueiroa and Kim, denied any link between political contributions and city work awarded to the Towill firm. She said the firm has conducted high-quality work for the city for decades and that none of its projects has generated controversy like the $23 million Waipio Peninsula Soccer Park.
The 288-acre soccer park, which was the subject of a September 2002 investigative grand jury, experienced several construction changes, which resulted in millions of dollars in increased costs.
As part of a plea bargain, prosecutors will drop charges against Towill executives Roy Tsutsui, Nancy Matsuno and Kenneth Sakai, and former Towill comptroller Robert Ko, who were indicted last year.
Prosecutors also will drop charges against Big Island residents Donn, Jay and Masae Mende, who were indicted by an Oahu grand jury with the Towill executives for making illegal political contributions.
Yuen said Kim and Figueiroa have been upstanding members of the local community and have contributed to a number of local charitable causes. She noted that Kim has established a $1 million endowment at the University of Hawaii.
Kim, who retired as Towill's chairman four years ago, served as chairman of the University of Hawaii's Board of Regents between 1998 and 2000. He also served as a regent between 1997 and 2001 and was president of the University of Hawaii Alumni Association in the 1994-1995 fiscal year.