Firm to pay
$220,000 fine

Local engineering company
Paren Inc. admits to exceeding
limits on campaign contributions

One of the state's largest engineering firms will pay more than $220,000 for making illegal political contributions under a proposed settlement with the state Campaign Spending Commission.

Paren Inc., better known as Park Engineering, admitted that it exceeded campaign contribution limits and made political donations under false names to the campaigns of former Mayor Jeremy Harris, ex-Gov. Ben Cayetano, past Maui Mayor James "Kimo" Apana, former City Councilman Arnold Morgado, ex-Lt. Gov. Mazie Hirono, former Mayor Frank Fasi and Mayor Mufi Hannemann.

Bob Watada, the commission's executive director, declined to disclose the exact amount of the fine. The fine is subject to the approval of the commission's five-member board, which meets today.

Based on past practices, the fine will likely exceed $220,000, making it the second-highest penalty issued by the commission. In October 2003, the commission approved a $303,000 fine against Michael Matsumoto, the chief executive officer of SSFM International Inc.

Steven Hisaka, Paren's attorney, declined comment yesterday since the proposed settlement agreement is subject to the review and the approval of the commission.

The fine comes less than a month after the company's former Chief Executive Officer Larry Matsuo was fined $2,500 after he pleaded no-contest to criminal charges of money laundering and making a political donation under a false name.

According to commission investigators, Paren, Matsuo and its top executives made 185 illegal political contributions totaling more than $230,000 through a network of nearly four dozen company employees, relatives and friends.

Since 1996, the company's network of donors contributed more than $102,000 to the Harris campaign, $51,000 to the Cayetano campaign and $40,500 to Morgado's campaign, the commission alleged.

During the same period, Paren contributed $16,000 to Apana, $5,500 to Hirono and $1,800 to Fasi, according to the commission. Between 1997 and 2001, the Hannemann campaign received $13,100 from people connected to the firm, the commission said.

By law, donors are barred from giving more than $4,000 for a mayoral race and $6,000 for a gubernatorial race in a four-year election cycle. They also cannot make political donations under false names.

Founded in 1958, Park Engineering is one of the state's largest engineering firms, receiving more than $5.5 million in nonbid consulting work from the city during the past decade.

The city projects include a $1.5 million contract for sewer facilities in Kalihi Valley and a $300,000 engineering contract for the Ted Makalena Golf Course.

The Harris campaign has denied any link between campaign contributions and the awards of city contracts.