Woo vs. Harmon - Witness Calvin Say

David C. Farmer, Successor-Trustee vs. Harmon

(Formerly Woo vs. Harmon & Nicholson vs. Harmon)

CV05-00030 DAE KSC

U.S. District Court For the District of Hawaii

Judges: David A. Ezra; Kevin S. Chang

—

DEFENDANT’S WITNESS

CALVIN SAY

Address to be determined.

Speaker of the Hawaii House of Representatives; President, Kotake Shokai, Inc.; Director, CB Bancshares, Inc. (parent of City Bank and International Savings & Loan).

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NEW DISCOVERY (10-12-08): More undisclosed relationships between Trustee David Farmer and witnesses Linda Lingle, Calvin Say, Colleen Hanabusa, Dean K. Hirata, Central Pacific Bank, Colbert Matsumoto, Japanese Cultural Center, Eric Martinson, Sanford Murata, Duane Kurisu, Crystal Rose, others....

October 12, 2008

Hawaii legislators to get 36% pay raise

By Richard Borreca, Star-Bulletin

When state legislators head to the Capitol after this year's elections, they will get a 36 percent pay raise.

According to the state Salary Commission, lawmakers are eligible for a raise that takes their pay to $48,708 from $35,900. Legislators also get a legislative allowance that goes up by the same percentage - to $10,200 from $7,500.

In total, all legislators will get an additional $15,508 a year or a total annual increase of $1.17 million more.

"I don't think it is right," says Sen. Sam Slom (R, Hawaii Kai-Diamond Head), who says he has never accepted the expense account funds.

"In these difficult economic times, these increases should be delayed," Slom added. "I had concerns about the entire Salary Commission process. There were no hearings. The Legislature was not responsible for voting on it."

Other legislative leaders say the commission followed the changes that were supported by voters when the state Constitution was amended to permit a single commission to set the pay for judges, state executives and the legislature.

"I am grateful that the taxpayers supported a constitutional amendment that tied the rates of judicial, executive and legislative pay raises," said House Speaker Rep. Calvin Say.

The pay raises were needed, according to Say, because the last raise was in 2005 and before that, it had not been raised in 12 years.

"Today's increase will be beneficial for all legislators who are full-time legislators," Say said. "The raises will let them afford their rents, utilities and everything else that has gone up in price."

Senate President Colleen Hanabusa said Slom or any other legislator can introduce legislation next year to block the pay raise, but until then it will start in 2009.

"I believe they (Salary Commission members) have done their assessment as to what is proper payment and we should abide by it," Hanabusa said.

Both the Senate president and speaker of the House will get a pay differential, raising their pay to $56,208 from $43,400.

The Salary Commission recommendations took effect last year. The Legislature was not required to give a final approval because the raises went into effect unless the lawmakers actively voted to kill them.

In reaching its decision to increase lawmakers' pay, the Salary Commission noted that legislators have many demands that "restrict the ability of Legislature to supplement their salary with a profession, business or other employment."

In the future, the commission said, if pay isn't raised, it "may limit the number of qualified individuals willing to serve as state legislators."

In this election, even with the coming pay raise, 22 legislative seats were uncontested, with only the incumbent running.

The money for legislative salaries comes from the state budget, so the state Department of Accounting and General Services issues that check. But the expense allowance comes from the Legislature's own budget, so the House and Senate will have to adjust their budget for that extra expense of $205,200.

Say and Hanabusa said they have already started to discuss the budget for the 2009 session and will also go along with Gov. Linda Lingle's request that all state spending be trimmed by at least 4 percent.

Say said the Legislature would "follow the governor's lead.”

Honolulu Star-Bulletin

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The Whistler

Reply »

Anyone know the names of the pay pals on the State Salary Commission who recommended these raises for their legislative cronies?

Take a look at these pages for some possibilities:

http://archives.starbulletin.com/2002/12/21/n...

http://www.kycbs.net/CV05-00030-Witness-Say-C...

http://www.kycbs.net/CV05-00030-Witness-Hanab...

http://www.kycbs.net/CV05-00030-Witness-Lingl...

Politicians who prey together, stick together!

Topix Forum, Honolulu Star-Bulletin

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October 14, 2007

Hawaii ferry spent $175,000
on lobbying

By Rick Daysog, Honolulu Advertiser

Hawaii Superferry officials spent more than $175,000 over three years on lobbying and campaign contributions, including dozens of donations to Gov. Linda Lingle, U.S. Sen. Daniel Akaka, U.S. Rep. Neil Abercrombie and other key state legislators.

An Advertiser computer-assisted study of state and federal campaign records shows that the Superferry, its executives and several of its board members contributed more than $39,000 since 2004 to local lawmakers and members of Hawai'i's Congressional delegation.

A review of state and federal ethics filings also found that the Superferry spent more than $136,000 since 2004 to lobby state officials and the federal government.

"You're talking about an extremely large sum of money even by national standards," said Craig Holman, a campaign finance expert with Public Citizen, a Washington, D.C.-based consumer advocacy group. "At the very least, they are trying to buy access, and at the worst they are trying to buy influence."

Superferry officials said there's no connection between the political donations and any legislative efforts pursued by the company.

The Lingle administration decided in February 2005 to exempt the Superferry project from an environmental assessment, which would take months to complete. That decision was reversed by the Hawai'i Supreme Court in August and now the ferry has been banned from operating until the assessment is finished.

Lingle and state legislators may convene a special session to rewrite the law and allow the ferry to operate while the assessment is conducted.

The 350-foot ferry was to carry passengers and vehicles between O'ahu, Maui and Kaua'i and began service in August before being shut down.

POLITICAL DONATIONS

The Advertiser's computer-assisted study examined contributions made to Lingle, Hawai'i's Congressional delegation and all 76 state legislators from 2004. The study found that Superferry executives and its board members made more than 30 political contributions between 2004 and 2007.

Here are the highlights:

Lingle's campaign received the most money from the Superferry and its officials, even though Lingle had directed campaign officials not to accept money from Superferry executives, said Miriam Hellreich, who served as the Lingle campaign's finance director from 2002 to 2006.

State campaign spending records show that Lingle's campaign received six donations totaling $12,000, including $6,000 in donations in October 2006 from Superferry Chairman and former Secretary of the U.S. Navy John Lehman and company Director Tig Krekel.

Hellreich said the Lingle campaign's policy was to refuse contributions from companies that were negotiating with the state for contracts. Lingle also told campaign staffers not to accept contributions from Superferry executives, Hellreich said.

Hellreich said staffers made "an error" by accepting the $6,000 in 2006 because negotiations between the state and Superferry were ongoing. Some campaign staffers were not aware of the internal policy against accepting money from Superferry officials, she said.

Hellreich also noted that the Lingle campaign returned about $10,000 in donations to Superferry officials in 2005 because the state and the company were still in negotiations. Hellreich said the campaign has no plans to return the 2006 donations.

"All the donations associated with people with the (Superferry) were within the law," Hellreich said.

Superferry executives and directors also contributed $9,200 to Abercrombie's campaign, including a cluster of June 2007 donations from Lehman, Krekel and Superferry President and CEO John Garibaldi.

Abercrombie said he receives support from a broad group of interests including environmental groups.

Federal Election Commission records show that the Sierra Club's political committee contributed more than $6,000 to Abercrombie's campaigns since 1998 and that the League of Conservation Voters Action Fund has donated nearly $1,000 to his campaigns since 1998....

Superferry executives made several contributions totaling $8,800 on Aug.25, 2006, and Sept. 11, 2006, to Akaka's campaign. Akaka spokesman Jesse Van Dyke said Akaka has taken no position on the issue since it doesn't involve Congressional action and is largely a state issue.

State House Speaker Calvin Say, a Superferry supporter, received $2,000 from the company on Jan. 24, 2006. That same day State. Rep. Joseph Souki received $1,000 from the Superferry. Say, D-20th (St. Louis Heights, Palolo Valley, Wilhelmina Rise), and Souki, D-8th (Wailuku, Waihe'e, Waiehu), were not available for comment....

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October 10, 2007

Ruling boxes in Superferry

A judge prohibits service to Maui, prompting Gov. Lingle and lawmakers to seek a special session

By Richard Borreca, Star-Bulletin

The debate over the Hawaii Superferry appears headed for the state Capitol.

Political leaders are huddling to see whether they have the support to change environmental laws to let the Superferry operate after a Circuit Court judge blocked the service to Maui.

Gov. Linda Lingle is urging House Speaker Calvin Say and Senate President Colleen Hanabusa to act soon because the Superferry company will have to start laying off employees in three weeks.

Maui Judge Joseph Cardoza yesterday blocked the Superferry from using Kahului Harbor facilities without an environmental assessment.

Superferry officials said they were disappointed for the employees and for Hawaii. Their attorney said they planned to appeal the decision.

Sierra Club attorney Isaac Hall said he is sorry the Superferry is losing money but said the company and the state were warned several years ago that they had to perform an environmental assessment.

Cardoza's decision was applauded by residents opposing Superferry stops on Kauai until an environmental study is done. The decision doesn't affect Kauai's Nawiliwili Harbor. But Superferry officials have said the company wouldn't make enough money by going only between Oahu and Kauai.

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October 10, 2007

Environmentalists cheer court

Superferry's attorney signals an intent to appeal the ruling

By Gary T. Kubota and Nelson Daranciang, Star-Bulletin

Kauai residents pushing for an environmental review of the Hawaii Superferry for the Garden Island are thrilled with Maui Circuit Judge Joseph Cardoza's decision.

"This is a victory for all people who believe an environmental assessment should be done before the Superferry can operate," said Jimmy Trujillo, spokesman for Hui-R, the group that organized the protest of the Superferry's maiden voyage to Kauai in August.

But Superferry officials were disappointed yesterday, and Superferry attorney Lisa Munger said her client planned to appeal Cardoza's decision.

Superferry President and Chief Executive Officer John Garibaldi said: "Obviously, we are disappointed. While the ruling is a loss for Hawaii Superferry and our employees, it is a greater loss for the state of Hawaii."

Garibaldi declined to respond to questions after the Maui court hearing.

Cardoza's ruling affects Superferry travel to Kahului Harbor and does not affect Nawiliwili Harbor on Kauai.

Superferry managers have chosen not to operate on Kauai even though there is no legal obstacle. Circuit Judge Randal Valenciano ruled on Kauai last month that opponents failed to file a timely challenge after the state exempted the Superferry from having to do an environmental assessment.

"We're proceeding with our appeal," said Greg Meyers, an attorney for Thousand Friends of Kauai. "We expect the state and the Superferry to appeal Judge Cardoza's ruling. We don't know what they're going to do. We aim to be prepared."

Besides blocking Superferry operations at Kahului Harbor, Cardoza also declared that an operating agreement between the Superferry and state transportation officials was void.

State law requires an environmental assessment before the operation can start and he was compelled to apply Hawaii law as it is written, the judge said.

Cardoza said the Hawaii Supreme Court had already ruled on the merits of the case by ordering that an environmental assessment be done and that he was following the system of environmental review as required by state law.

Cardoza said the decision should not be looked at as a moment of joy but a time for all to bridge divisions. "If we don't work out these issues, things will not get better," he said.

Garibaldi has said the company would have to transfer the Alakai out of Hawaii if it is allowed to operate only to Kauai.

Superferry officials also have mentioned the possibility of laying off 90 percent of the employees during the environmental review process.

Isaac Hall, representing the Sierra Club and other citizens' groups in the Maui case, said he hoped the Superferry does not leave Hawaii and lay off its employees.

Hall said he was sorry that there will be economic harm to the Superferry but that the interisland service and the state were warned years ago about preparing an environmental assessment.

"The message to the state is, 'Don't abuse the exemption process,” Hall said.

He said state transportation officials should do a broader study that requires an environmental impact statement and might take one to two years, compared with an assessment that takes about eight months.

Keone Kealoha of Malama Kauai does not expect the Superferry to return to Nawiliwili Harbor until after state lawmakers meet in special session -- if they decide to do so.

http://starbulletin.com/2007/10/10/news/story01.html

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http://starbulletin.com/2007/10/10/news/story01.html

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April 17, 2000

Probe outlines
trust’s politicking

Kamehameha Schools 'has attempted to
orchestrate the democratic process to its
favor,' says a state report

Unreported contributions, lobbying
expenses and attempts at shaping
state legislation are alleged

By Rick Daysog, Star-Bulletin

Kamehameha Schools operated a massive political machine that directed tens of thousands of dollars to the campaign coffers of isle legislators, drafted legislation and floor speeches for key state lawmakers, and entertained scores of state and county officials at isle restaurants, an investigation by the state attorney general shows.

In a 20-page report obtained by the Honolulu Star-Bulletin, the attorney general's office said the $6 billion charitable trust maintained an in-house network that may have distributed thousands of campaign fund-raiser tickets from isle politicians to various trust employees, trustees and outside vendors.

The state investigation also found that trust employees between 1992 and 1997 hosted more than 700 meetings with state and city officials at local restaurants at a cost of more than $34,000.

Former state House Speaker Joe Souki (D, Maalaea) was treated to more than 65 meals by estate personnel, while current Speaker Calvin Say (D, Palolo Valley) enjoyed 38 meals at the trust's expense, the report said.

"The organization has attempted to orchestrate the democratic process, from beginning to end, to its favor," Deputy Attorney General Kurt Spohn said in the report.

The questionable political activities, which allegedly occurred under the stewardship of the embattled former board of trustees, could have jeopardized the estate's tax-exempt status. Federal law bars charities from playing any role in a political election and places strict limits on lobbying. State campaign finance laws also bar organizations such as Kamehameha Schools from making unreported contributions.

Last week, criminal investigators with the attorney general's office turned over their report on the trust's political activities to the state Campaign Spending Commission, which will likely hold administrative hearings in the next few months.

Bob Watada, executive director of the Campaign Spending Commission, declined comment, saying he is still reviewing the documents. The attorney general's office had no response.

A spokesman for Kamehameha Schools, formerly known as the Bishop Estate, said the estate's interim board of trustees -- which took over management of the trust last May -- has cooperated with the state's investigation and has dismantled the trust's government relations division. He declined further comment.

Former trustee Henry Peters defended the trust's lobbying, saying its government relations division was set up to keep track of legislation that was potentially harmful to the estate. Peters said the trust has suffered millions of dollars in losses during the years from land condemnations and other arbitrary land-use decisions by lawmakers.

Peters said he was not aware of the particular charges raised in the attorney general's report, but added that there is nothing wrong in taking a legislator out to lunch to discuss trust concerns.

"I expect our people to know who our leaders are and to be able to communicate with them," said Peters, a former state House speaker. Ex-trustee Richard "Dickie" Wong is a former state Senate president.

"If it means taking them out to lunch so they can understand the Kamehameha Schools story, then they should be told" that story, Peters said.

Much of the attorney general's report dealt with previously disclosed allegations that trust employees directed the estate's architecture and engineering firms to pay $18,262.17 of campaign debts owed by state Sen. Marshall Ige, a longtime ally of Peters, and $12,334.44 owed by former state Sen. Milton Holt, a former trust employee.

Holt pleaded guilty to a federal mail fraud charge relating to his campaign debts, and Ige is scheduled to go to trial in September on misdemeanor charges.

However, the attorney general's report also included new details concerning attempts to cozy up to isle legislators. One exhibit provided an itemized list of Visa card expenditures at local restaurants by Holt and fellow trust employees Alika Thompson and Namlyn Snow, who headed the Kamehameha Schools government relations division.

'Those guys are buried'

None of the meetings were listed as lobbying expenses by the trust with the state Ethics Commission, in what could be a violation of state law.

In addition to meals for Souki and Say, the expenditures included:

> 28 breakfast meetings with former Rep. Merwyn Jones.

> 23 meetings with City Councilwoman Rene Mansho.

> 21 meals with former Big Island Rep. Harvey Tajiri.

> 17 meetings with former House Judiciary Chairman Terrance Tom.

> 16 lunch and dinner meetings with state Sen. Bobby Bunda.

Tom and Bunda (D, Wahiawa) said they could not recall such meetings, and Mansho and Say could not be reached for comment.

Jones recalled that he met with Thompson for breakfast at the Columbia Inn during the years, but the former Waianae representative said the meetings were social and that Bishop Estate business was never discussed. Jones said that he and Thompson have been friends since the 1960s and that he was not aware the bills were paid for by Thompson's Kamehameha Schools Visa card.

Tajiri said he met Thompson several times but largely on a social basis. But Tajiri, a former Hilo Democrat who left the Legislature in 1994 and is running for Big Island mayor as a Republican, added that he met with Thompson years ago to urge the trust to build a Big Island campus.

Souki also acknowledged meeting with Thompson for breakfast at the Columbia Inn occasionally. But he disputed the attorney general's report that he met the trust's lobbyists a total of 65 times between 1992 and 1997.

Souki said he could not recall any discussions about trust business during the meetings. Souki -- who was heavily criticized for earning a $132,000 commission on a Kamehameha Schools-related land deal on Maui -- also took issue with the local media for its continued coverage of the estate's former trustees.

"You guys have done enough already," said Souki.

"Those guys are buried. It's all over. They're done. Let them live their lives."

Fund-raising pervasive

The attorney general's report also cited recent testimony about Kamehameha Schools' role in shaping legislation. State investigators said Kamehameha Schools at one time employed 10 legislative teams to cover the estate's interests in the state Capitol. Some of their activities included:

> Drafting bills, amendments and committee reports for lawmakers.

> Writing floor speeches for key legislators.

> Planning, coordinating and implementing demonstrations, rallies and legislative receptions. http://www.the-catbird-seat.net/SINNOTT-1-5-97.htm

> Providing crews for sign-holdings, door-to-door canvassing and coffee hours.

> Paying for supplies and refreshments for special political activities and legislative strategy sessions.

> Networking with private civic clubs and trade organizations that share similar interests in Hawaiian and property rights issues.

> Writing and submitting letters to the editors in Honolulu's daily newspapers.

The fund-raising efforts also were pervasive, according to the attorney general's report. State investigators described one campaign finance scheme in which Snow collected thousands of tickets for a fund-raiser that were sent to trust employees.

Snow, who died in May 1999, would then parcel some of the tickets to trustees and outside contractors for payment, the investigators said. Such forms of bundling of fund-raiser tickets could be viewed as an unreported campaign contribution by the estate, which would be illegal.

One former government affairs worker said she felt pressured by her supervisors to take part in campaign events.

Lurline Diane Naone-Salvador said in a July 1999 deposition that her job required attending legislative hearings and political fund-raisers for Holt and City Council members Mansho and John DeSoto, even when she was sick or had a family event to attend.

Salvador said her husband once slammed a phone down on her boss, Snow, who demanded that Salvador hold signs for a political candidate on the day that Hurricane Iniki hit in 1992.

Neil Hannahs, longtime Bishop Estate land manager, said in a May 1999 deposition that lawmakers and their campaign managers often hit up trust officials when they went to the state Capitol on legislative matters.

"(My) experience is, every time you testify before a committee, inevitably that committee chair puts you in their campaign mailing list," Hannahs said.

"(And) when they have a campaign fund-raiser, they send you a couple of tickets ... or some will send you a book. Some will get aggressive and send you a whole bunch."

'Source of political plums'

Former Attorney General Margery Bronster said the estate's lobbying and campaign efforts go a long way in explaining her controversial confirmation defeat in the state Senate last year. The estate's former trustees remained well connected and continued to exercise their influence in the Capitol even after they left office, she said.

That view is boosted by statements made under oath by former Kamehameha Schools trustee Richard "Dickie" Wong that he and Big Island rancher Larry Mehau met with four freshmen senators to discuss Bronster's confirmation prior to the vote.

"The trustees were selected more on the basis of political connections and political payback than on merit," said Randall Roth, University of Hawaii law professor and co-author of the 1997 "Broken Trust" article which heavily criticized the former trustees of Kamehameha Schools.

"Consequently, it's hardly surprising that they treated Princess Pauahi's legacy like a source of political plums to be doled out to others."

http://starbulletin.com/2000/04/17/news/story2.html

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May 31, 2005

VIA facsimile @ (808) 529-7177

and e-mail: sguttman@kdubm.com

Mary Lou Woo, Trustee
c/o Mr. Steven Guttman, Esq.
Kessner Duca Umebayashi Bain & Matsunaga
220 South King Street, 19^th Floor
Honolulu, HI 96813

RE: Mary Lou Woo, Trustee v. Bobby N. Harmon
CV05-00030 - Addition of Witnesses Bunda, Herkes, Holt, Ige, Say, et al.

Dear Ms. Woo:

As you know, one of my major arguments in the subject case is that this lawsuit was motivated by you, and others, to continue to obstruct justice in a series of legal proceedings which originated with the Internal Revenue Service’s audit of Kamehameha Schools Bishop Estate, and EQ2048 - the Attorney General’s lawsuit for removal of the former trustees of this worthy organization.

This is to inform you that the following individuals who were named, along with myself, as witnesses by Attorney General Earl Anzai in EQ2048 - Judge Kevin S. Chang presiding - are also expected to be named as witnesses in the referenced case:

Nathan Aipa, Lyn Anzai, Wendall Brooks, Margery Bronster, Robert Bunda, Paul Cathcart, Randall Chang, Wallace Chin, Michael Chun, David Paul Coon, Diane Cornwell (Arthur Andersen), Doyle Davis, Dennis Fern, Frederick Field, Rockne Freitas, Shevron Garnett, Mitchell Gilbert, Robert Bruce Graham, Jr., Glen Hara, Samuel Hata, Clayton Hee, Michael C. Heihre, Robert Herkes, Ronald N.S. Ho, Milton Holt, Richard Humphreys (Marsh & McLennan), Marshall K. Ige, Gilbert Ishikawa, Gerard A. Jervis, Dan Jones, Louanne Kam, Martin Katz (William M. Mercer, Inc.), Louis A. Kau, Francis A. Keala, Robert K.U. Kihune, Christopher Kludo (XL Insurance, Bermuda), Carol Koza, Constance Hee Lau, Ronald D. Lipkuman, Christine Lee, Emmett “Buzz” Lewis (Miller & Chevalier), Marion Mae Lokelani Lindsey, Garrett Liu (Marsh & McLennan), Peter Lowe (P&C Insurance), Michael Lum, Pamela Martin (XL Insurance, Bermuda), Eric Martinson (MN Capital Partners), William McCorriston, Hamilton McCubbin, Mark McConaughy (PricewaterhouseCoopers), Adam McDonough (Marsh & McLennan), Harben Michael McKenzie, Larry Mehau, Bruce Nakaoka (MN Capital Partners), Alexander J. Neves, Gordon Nishiki (Insurance Division, State of Hawaii), Cheryl Onishi (Kamehameha Investment Corp.), Rodney Park, Henry H. Peters, Lorene Philips (XL Insurance, Bermuda), Wayne Pitluck, Esq., Lynn Pummill, Stacy Rezentes, Robert Richards, William S. Richardson, John Rocha (Kamehameha Investment Corp.), Randall Roth, Paul Sachs (Arthur Andersen), Rocco Sansone (Marsh & McLennan), Peter Savio (Savio Realty), Calvin Say, Eric Schall (Chubb & Son), Howard Schoenfield (PricewaterhouseCoopers), Joseph M. Souki, Oswald K. Stender, Jeffrey R. Stone, Randy Stone, Matsuo Takabuki, Lance Tachino, Yukio Takemoto, Gilbert Tam, Sue Temkin (Verner Liipfert Bernhard McPherson & Hand), Kenneth K. Teshima, Alika Thompson, Arthur Tokin (Arthur Andersen), Terrance Tom, John D. Waihee, Colleen I. Wong, Richard Sung Hong Wong, Richard Sau Hong Wong (Royal Hawaiian Shopping Center), Elisa Yadao, Alan Yee, Allen Young, Eric Yeaman and Coreene D. Zablan.