UH sees no
conflict of interest
with PR contract

University of Hawaii regents awarded a nearly $90,000 public-relations contract to a former boss of board Vice Chairwoman Kitty Lagareta during this summer's dispute over then-UH President Evan Dobelle's dismissal.

Kitty Lagareta: She says she did not make the final decision to hire her former boss

The contract went to consultant Rick Zwern, who was a co-owner of Communications Pacific Inc. when Lagareta worked for the firm early in her career.

Lagareta said that while she had a say in the hiring of Zwern, she did not make the final decision, and university lawyers agreed that there was no conflict of interest.

"Rick has had no financial interest in Communications Pacific since 1994," Lagareta said, noting that he was not an owner when she purchased the firm in 1998.

Zwern sold Communications Pacific to Hill & Knowlton in 1993. Lagareta and current company President Al Hoffman bought the company from Hill & Knowlton.

Lagareta, who is the firm's chairwoman and chief executive, said the regents decided in June that they needed professional public relations help with the dispute. She said she participated in the discussion about several consultants, including Zwern, with regents' attorney Bill McCorriston. McCorriston made the final decision on which firm to hire.

McCorriston said he selected Zwern because he was familiar with his work. "He gave me my original media training," he said.

He added that Board of Regents Chairwoman Pat Lee approved the decision.

Lagareta said she disclosed her relationship with Zwern to the other regents.

UH Vice President and General Counsel Walter Kirimitsu said he did not see a conflict with Zwern's relationship to Lagareta because there was no financial interest, McCorriston did the hiring and Lagareta disclosed her relationship.

Zwern, an international training director for the public relations firm of Hill & Knowlton, bought Communications Pacific with co-owner Clifton Kagawa in the early 1980s. Lagareta was hired at that time by Kagawa, she said.

Zwern, who maintains a home in Hawaii and continues to do public relations consulting work here, also does training for Communications Pacific.

His contract with McCorriston and the regents was part of the legal bills released Sept. 23.

"It was a good value," McCorriston said. "It freed my time up," he said, noting that Zwern's hourly rate is much lower than his. McCorriston said Zwern also gave the regents advice on other matters, including transition issues.

The Board of Regents fired Dobelle on June 15. Dobelle hired his own attorneys, and after a successful mediation, the regents took back the firing and Dobelle resigned.

Dobelle got about $1.3 million in severance and salary for two years, instead of the $2.26 million called for in his contract.

Legal bills for the university and Dobelle's lawyers, who were paid by UH, totaled more than $1 million.