Bobby N. Harmon, CPCU, ARM

Honolulu, Hawaii

May 13, 1999

TO:   1)      Federal Bureau of Investigation - Fax No. (808) 566-4470

         2)      Internal Revenue Service - Fax No. (808) 541-1109

         3)      Attorney General, State of Hawaii - Fax No. 586-1375

         4)      Colbert Matsumoto, Esq. - Fax No. 523-7885

RE:   Senator David M. Matsuura and Bishop Estate

Gentlemen:

         After reading Senator Matsuura’s article in the May 8, 1999 edition of the Star Bulletin explaining why he voted against the confirmation of Margery Bronster as attorney general, I felt that perhaps Senator Matsuura may not have fully disclosed his business connections with Bishop Estate to the legislature, as well as to your offices and the general public.

         While serving at the Risk/Insurance and Safety Manager for Kamehameha Schools/Bishop Estate (KSBE), I was involved in the handling of a wrongful termination insurance claim brought against the estate by William Rosehill sometime in 1994 or 1995. Mr. Rosehill was terminated for allegedly accepting kick-backs from a Bishop Estate lessee, Umikoa Ranch. During the investigation of the claim, it was reported that an “area of concern” had arisen with respect to a letter from David Matsuura to the Board of Directors of Umikoa Ranch. I have not seen this letter and have no knowledge of its contents. However, there were rumors that the senior Senator Matsuura, father of David and now deceased, had been inquiring of one or more of the trustees as to the settling of Rosehill’s case, and that the senior Matsuura seemed anxious that the case settle. I have no knowledge that these inquiries actually occurred, but the speculation at the time was that the letter to Umikoa Ranch might be viewed by the Senator as causing problems for his son. In any event, a staff report to trustees prepared on May 6, 1996, by Colleen Wong, Esq., of KSBE’s Legal Group, recommended that the case be settled. The trustees accepted this recommendation and the claim was quickly settled out-of-court.

         As previously stated, I am not aware of the contents of the letter or Senator Matsuura’s connection with Umikoa Ranch, However, you may wish to question those persons with direct knowledge of the situation and circumstances. These individuals would be Nathan Aipa, Esq., Colleen Wong, Esq., William Rosehill, Robert Lindsey and Senator Matsuura himself.

         It would seem that Milton Holt’s claim that the senior Senator Matsuura was one of the individuals he entertained at a “hostess bar” on a Bishop Estate credit card may be factual after all. Perhaps Mr. Holt could also provide additional information with regard to Senator Matsuura’s relationship with Umikoa Ranch, and thus Bishop Estate and the contents of his letter to Umikoa’s Board of Directors.

         I hope this information is of some assistance in your ongoing investigations.

Very truly yours,

Bobby N. Harmon