Who's Guarding the Henhouse?

Part II - The Hawaiian Henhut

~ o ~

From: Roselotus@aol.com

Date: Tue, 17 Dec 2002, 20:57:59 EST

Subject: AKAL Security - Who is guarding the Henhouse?

Dear Catbird,

I am the Moderator of an anti-cult activist Forum created by former members of the cult called 3HO, or Sikh Dharma Brotherhood, which is behind the AKAL Security empire. The leader of this cult is Yogi Bhajan. Our Forum is easily organized with easy to research Folders. Just go to:

http://forums.delphiforums.com/KamallaRose/start

and LOGIN as a GUEST.

We are so impressed to read what has been discovered by this site about AKAL.

Here is our the scoop:

Shanti Kaur Khalsa and Daya Singh Khalsa of AKAL lied to the press about a certain drug felon's association with AKAL Security and it seems clear that they lied to investigators as well. The convicted arms and drug smuggler's name is GuruJot Singh Khalsa and his whole case can be found at

http://www.rickross.com/groups/3ho.html

Here is the newspaper story:

http://www.rickross.com/reference/3ho/3ho62.html

GuruJot Singh Khalsa is, in fact, very involved in AKAL, so much so that he was among those sued by a man named Mark Baker. Mark Baker was a member of the 3HO cult who worked for AKAL and found out that the cult was little more than a cover for organized crime and fled.

Here is a bit of what his court docs say:

http://www.rickross.com/reference/3ho/3ho37.html

Upon or shortly after his 1984 departure from the movement Mark Baker learned of the movement's involvement in drug-trafficking and money-laundering.

Mark Baker's awareness of this activity was at all pertinent times known to some or all of the defendants. In the spring of 1986 Mr. Baker, already highly accomplished in many aspects of security work, enrolled in the New Mexico State Police (NMSP)

Recruit Academy, seeking to become a New Mexico State Police Officer and thereby to continue to develop his already promising career in security and law enforce ment in New Mexico. By the tenth week of his twelve-week NMSP train ing, Mark Baker stood at or near the top of his class, was widely respected and admired by the faculty as well as his fellow recruits, was a likely candidate to be class valedictorian and was certain to complete his training successfully and embark on a highly promising tour as a NMSP officer.

On May 23, 1986, defendant Hari Kaur Khalsa ("Hari"), acting on behalf of, and using the letterhead of, defendant Sikh Dharma of New Mexico, wrote and signed a letter, a true copy of which is attached to this Complaint as Exhibit 3 and incorporated here by reference.

This letter contains a massive number of blatant and outrageous falsehoods, including aspersions cast upon Mark Baker's background, character, reputation, performance as a Sikh, potential reliability as a State Police Officer, hostility to Yogi Bhajan, and other false and outrageous aspersions against Mark Baker. This letter was hand-delivered to the Office of the Governor of New Mexico, whence it was transmitted to the NMSP .

Also on May 23, 1986 defendant Guru Tej Singh Khalsa ("Guru Tej") wrote and signed a "To Whom It May Concern" memorandum, a true copy of which is attached to this Complaint as Exhibit 4 and incorporated here by reference.

This memorandum contains a massive number of bla tant and outrageous falsehoods, including aspersions cast upon Mark Baker's background, character, reputation, performance as a Sikh, performance as an employee of Akal, potential reliability as a State Police Officer, and other false and outrageous aspersions against Mark Baker. This memorandum was also transmitted to the NMSP.

On June 6, 1986, defendant Guru Jot Singh Khalsa ("Guru Jot") visited then-Attorney General Paul Bardacke to discuss Mark Baker. During the meeting Guru Jot alleged that Mark bad been dismissed from the Coast Guard because of continued alcohol and substance abuse, that Mark had been intoxicated while on duty at Akal Security on more than one occasion, that he had fought with a supervisor, that he posed a threat to the life of Yogi Bhajan, and cast other false and outrageous aspersions on Mark Baker.

At the request of Guru Jot the Attorney General passed this information on to the NMSP in the form of memoranda, true copies of which are attached to this Complaint as Exhibits 5A, 5B and 5C and incorporated here by reference.

On or about July 1986 Mark Baker was summarily dismissed from the NMSP Recruit Academy.

Also, Dr. Richard Ofshe, known cult expert from UC Berkeley, said in his affadavit regarding the Mark Baker case:

http://www.rickross.com/reference/3ho/3ho32.html

The Sikh community is known to act in concert in response to a threat to it or to any of its members, I am informed and believe, for example, that many members of that part of the community which was led by Guru Jot Singh Khalsa, Yogi Bhajan's former second-in-command who is presently under indictment for RICO and drug-trafficking violations, offered to put up their homes as security for bail when he was arrested. This is typical of the degree of loyalty demanded by the cult, and of the lengths to which members will go to protect the cult and its leaders from danger or difficulty.

Yogi Bhajan exercises control over virtually ever major action taken by the organization. In particular, to the extent that the activities alleged in the indictment of Guru Jot Singh Khalsa and in related documents filed with the Court are true, they would have been known to and approved by Yogi Bhajan, at least in broad outline and concept, and would have been undertaken in furtherance of the aims of the movement.

Our Forum can provide lots of specific information about all the various characters involved in AKAL Security, how AKAL got started and evolved and what we believe to be it's hidden agendas.

Thank you very much for the wonderful work you do!

Kamalla Rose

Moderator - X-3HO-Friends Forum

http://forums.delphiforums.com/KamallaRose/start

(Thank YOU, Kamalla Rose - The Catbird)

From wikipedia:

BLACKWATER U.S.A.

Iraq involvement

In 2003, Blackwater landed its first truly high-profile contract: guarding civilian Administrator L. Paul Bremer in Iraq, at the cost of $21 million for 11 months. Since June 2004, Blackwater has been paid more than $320 million out of a $1 billion, five-year State Department budget for the Worldwide Personal Protective Service, which protects U.S. officials and some foreign officials in conflict zones.

In 2006, Blackwater won the remunerative contract to protect the U.S. embassy in Iraq, which is the largest American embassy in the world. It is estimated by the Pentagon and company representatives that there are 20,000 to 30,000 armed security contractors working in Iraq, and some estimates are as much as 100,000, though no official figures exist. Of the State Department's dependence on private contractors like Blackwater for security purposes, U.S. ambassador to Iraq, Ryan Crocker, told the U.S. Senate: "There is simply no way at all that the State Department's Bureau of Diplomatic Security could ever have enough full-time personnel to staff the security function in Iraq. There is no alternative except through contracts."

For work in Iraq, Blackwater has drawn contractors from their international pool of professionals, a database containing "21,000 former Special Forces troops, soldiers, and retired law enforcement agents," overall. For instance, Gary Jackson, the firm's president, has confirmed that Bosnians, Filipinos, and Chileans, "have been hired for tasks ranging from airport security to protecting Paul Bremer, the head of the Coalition Provisional Authority."

http://en.wikipedia.org/wiki/Blackwater_USA

< < < THE GREEN FLASHBACK < < <

November 13, 1998

Security firms say airport contract is slanted

Worth about $12 million, the airport security pact is
one of the most coveted in the state

by Malia Zimmerman, Pacific Business News

Problems surrounding two key state contracts are raising questions of favoritism in the minds of some local security vendors.

They wonder about the state Department of Transportation's contract division, which issued and then recalled two requests for proposals after competitors filed a series of complaints with the D.O.T. and the attorney general.

The vendors say they are concerned about conditions written into the bid that seem to favor the company currently holding the contract.

The dispute involves two of the state's largest security contracts, which govern security services at Honolulu International Airport and six neighbor island airports.

The coveted contracts total about $12 million, a potential gold mine for a local vendor.

They also are the only state security contracts calling for guards to carry firearms....

* * *

June 15, 1999

Booming 'ice' use gets Hawaii labeled a 'high intensity' problem -- opening access to federal personnel and a $186.5 million program

By Pete Pichaske, Phillips News Service

WASHINGTON - Hawaii today was named one of the nation's "high intensity drug trafficking areas" by federal drug officials concerned about the state's continuing problem with crystal methamphetamine or "ice" as well as its status as an international drug distribution hub.

The designation will mean an immediate influx of $700,000 to help fight drugs, as well as federal help with training, equipment and personnel.

The designation "is a catalyst for the coordination of law enforcement and prosecution," said Gen. Barry R. McCaffrey, the nation's drug czar and director of the Office of National Drug Control Policy.

The first "high intensity" drug areas were named in 1990 in an attempt to slow drug trafficking in regions with "significant narcotics threats."

The addition of Hawaii and four other geographic areas brings the number of drug trafficking areas to 31. The other four named today were central California, Ohio, Oregon and parts of New England.

The total budget for the program this year is $186.5 million.

Although one New England senator today called the designation, with its clear admission of a drug problem, a decidedly mixed blessing, Hawaii's lawmakers unanimously applauded their state's new status.

Representatives Neil Abercrombie and Patsy Mink noted that Hawaii is a "jumping-off" point for drug trafficking between Asia and the mainland, and said increased efforts should help slow the traffic.

Sen. Daniel Akaka said "the help we can get ... will certainly help us to stem the tide of ice to the mainland."

Ice first appeared in Hawaii about a decade ago, imported from Asia. It has since spread to the West Coast and, now, the Midwest.

Honolulu is among the top eight U.S. cities with the fastest growth of ice use, according to the 1998 annual report by the National Institutes of Health and the National Institute on Drug Abuse. The other cities are Denver, Los Angeles, Phoenix, San Diego, Detroit, Minneapolis/St. Paul, and St. Louis.

Three of Hawaii's four counties have showed dramatic increases in drug cases handled by local police, according to the national drug control office.

From 1996 to 1998, the number of cases increased by 53 percent in Honolulu and 42 percent in the Big Island, and quadrupled on Kauai.

The courts have seen the ramifications of the state's ice problem, in child abuse cases in particular.

Ice is the No. 1 drug among 90 percent of parents who abuse or neglect their children, according to Child Protective Services. There are about 2,300 confirmed cases of child abuse a year here.

In the last 10 years, child abuse cases have doubled, according to Family Court statistics.

According to a fact sheet prepared by the national drug control office, Hawaii's "accessibility to Los Angeles and Tokyo make the islands a key international drug distribution hub."

The isles' huge volume of cargo and mail, especially at Honolulu Airport, hampers efforts to stop drug trafficking, according to the office.

While local efforts to intercept drugs have met with some success, they have stopped only a fraction of the total traffic.

The fact sheet labeled Hawaii a conduit for drugs shipped from Mexico or the mainland and bound for Pacific islands, such as Guam or American Samoa, or Pacific Rim nations, such as Japan, Korea or Australia.

Authorities in the isles recently seized shipments of ice and cocaine bound for the Pacific Rim.

Law enforcement officials received today's news of additional federal help with open arms.

"That's great," said Keith Kamita, administrator of the Narcotic Enforcement Division, Department of Public Safety. "The added resources should make more of an impact on our efforts. The sharing of information will assist all agencies."

"We'll use the money through our airport program, working with other federal agencies," said Honolulu Police Capt. Thomas Nitta. "It's a continuing problem. We could use the extra money."

HPD is already working with federal agencies on a recently formed drug task force to fight the state's crystal methamphetamine invasion. The agencies include the FBI, Drug Enforcement Agency, Department of Alcohol Tobacco and Firearms, U.S. Customs, and the state attorney general's office.

Nitta blamed the state court system's shorter sentences for drug traffickers and prison overcrowding for the shorter jail terms drug offenders receive.

* * *

Note the date...

September 6, 1999

AIRPORT GUARDS NOT CLEARED
FOR SOME AREAS

by Malia Zimmerman, Pacific Business News

A New Mexico-based company that Wednesday took over armed-guard service at Honolulu International Airport has been denied access to highly secured areas at the airport.

Nat Aycox, port director for United States Customs, confirmed that Akal Security Inc. personnel have neither applied for nor been cleared to guard highly secured areas of the airport under U.S. Customs jurisdiction.

The application and clearance process for new personnel depends on the number of clearances required and can take several days, he said Sept. 1.

The head licensee of Akal in Hawaii, Art McCollough, did not return calls to PBN.

The lack of airport security may leave some areas of the airport under U.S. Customs control unnecessarily in jeopardy, although those areas are limited, Aycox says.

"Really, the seriousness of the situation depends on if there is a problem," he says. "If there is an incident, the Akal security can't just come in and help us fix it without clearing personnel first."

Kazu Hayashida, state Director of Transportation, says he was not aware of the clearance problem at the airport. His only comment was that the department would research the problem and contact PBN. No calls were returned by PBN's deadline.

Federal Aviation Administration officials who oversee the western region of the United States also were not aware of the situation.

Akal took over security at the Honolulu International Airport at midnight Tuesday following its winning a $20.4 million bid, around $300,000 lower than that of the state airport's former security firm, Wackenhut.

Several local and national companies competed for the three-year contract, considered the largest and one of the most coveted in the state. It also is the only state contract where guards are allowed to bear firearms.

In addition to clearance problems from Akal's delays in the application process, the guard firm also may be facing other problems.

Hayashida, the state's transportation director, said a federal investigator is looking into reports of illegal activity by Akal.

Personnel associated with the company and its affiliated companies have been accused of running illegal drugs and illegal weapons into the United States and of money laundering.

If the reports are substantiated, the contract could be pulled and given to the next lowest bidder, Hayashida says.

Earl Anzai, attorney general for the state of Hawaii, says his office had prior knowledge of neither the company's background nor failure to file for the access permit.

? ? ?

Four days later....

September 10, 1999

Sheriff's officers will replace police at Honolulu Airport

State cancels the HPD contract, says it will
save money with the change

by Jaymes K. Song, Honolulu Star-Bulletin

State transportation officials have terminated the services of Honolulu police officers at the Honolulu Airport.

As of Nov. 15, all 27 police officers stationed at the airport will be assigned to other divisions. And the state sheriff's officers will take over patrol and enforcement.

"It's unfortunate that after 20-plus years at the airport, it's coming to an end," Police Chief Lee Donohue said today.

However, police officers will be available when called. They will respond only to felony cases and life-threatening situations at the airport, Donohue said.

Donohue yesterday received a letter from Transportation Director Kazu Hayashida alerting him about the termination.

* * *

Security company fights back

By Gregg K. Kakesako, Honolulu Star-Bulletin

A New Mexico-based security company is seeking an injunction to prevent the state from canceling a recently awarded three-year contract at Honolulu Airport.

In a complaint filed in Circuit Court yesterday, Akal Security Inc. said there is "absolutely no basis" for allegations that principals in the firm are under federal investigation for alleged criminal activity.

The suggestion that the Drug Enforcement Agency may be investigating Akal is "particularly ludicrous" since the firm provides security to the agency's Washington, D.C., headquarters under contract with the U.S. Marshals Service, the complaint says. A hearing was scheduled for today.

Several federal agencies have been asked to help state officials determine whether Akal has officers with criminal records, an allegation flatly rejected by two company officials.

Shanti Kaur Khalsa, director of operations, said, "If we did, we could have never applied for the state contract or never be able to hold a secret clearance."

Daya Singh Khalsa, senior vice president, called the allegation groundless, noting his company also has security contracts with the Marshals Service in 31 states that cover 300 courthouses.

Both Shanti Kaur Khalsa and Daya Singh Khalsa are Sikhs and are not related. They say the confusion stems from a 10-year-old drug arrest on the East Coast of someone who bears the same last name.

"That person has no relationship to our company or religion or me," said Shanti Kaur Khalsa. "In my culture everyone has the same last name. ... I believe the truth will prevail and we will continue to work at the airport."

She said Akal beat Wackenhut Corp by submitting a low bid of $20.4 million to provide security at Honolulu Airport. The bid was awarded Aug. 16. Wackenhut outbid Akal for the neighbor island airports contract.

In its complaint, Akal says the state has not signed its contract yet, although the company was given a purchase order number orally to induce it to start work.

Shanti Kaur Khalsa said shortly after the company began working at the airport, her employees received fliers questioning the status of company employees.

Those anonymous allegations also were sent to the Federal Aviation Administration and other state officials.

State Attorney General Earl Anzai said his office was asked to look into the allegations by Gov. Ben Cayetano, and his staff has completed a "preliminary investigation" and is still awaiting a report from airport officials.

Anzai declined to release his staff's findings. However, Daya Singh Khalsa said the attorney general's office yesterday told him the entire matter has been turned over to the state Transportation Department.

State Airports Administrator Jerry Matsuda last night said his office is still evaluating Akal's contract and "so far the work is satisfactory."

He said the Federal Aviation Administration is helping to collect information on the company.

"We are treating them as if they have met all of the qualifications," Matsuda said.

He said the company earlier presented a list of their past federal contracts which was "very impressive" and there didn't seem to be any problems until the state received an anonymous complaint.

Thomas Rea, FAA's Pacific representative, said all the information his agency gathers will be turned over to the state. The FAA was waiting until the company posted a bond -- which Akal said was done Tuesday -- and was checking its latest contract with an airport in Houston.

Shanti Kaur Khalsa said the company's records and employees were screened a year ago by transportation officials before the bidding process began this summer. Akal never would have been able to participate if any of its employees had criminal records, she said.

State law prevents anyone with a criminal felony record from being hired as a security guard, she said.

* * *

One day later...

September 11, 1999

The State's Airport Security Contract Is Being Reviewed After Allegations of Criminality

By Susan Kreifels, Honolulu Star-Bulletin

A judge has rejected a security company's request for a temporary restraining order to prevent the state from canceling a recently awarded three-year contract at Honolulu Airport.

But Circuit Court Judge Gary Won Bae Chang yesterday told the state he would "appreciate greater openness if it doesn't compromise any investigation" being undertaken of Akal Security Inc.

"The court would appreciate it if the state would provide information to the client," he added.

Daya Khalsa, senior vice president of the security firm, based in New Mexico, said he was pleased with the judge's decision because that was what the company wanted -- more openness and information from the state about its investigation of the company.

Khalsa said there is no basis for allegations that Akal officials were involved in criminal activity being investigated by the federal Drug Enforcement Administration.

Khalsa's attorney, Lex Smith, said the state has not provided any information to Akal officials and had canceled a meeting after the company flew people out to attend it. "The first thing is, they should tell the party involved what they think we did," Smith told Chang.

Chang said there was an absence of facts showing the government had committed arbitrary and capricious acts, and that the state appeared to be living up to the contract. He advised the company, however, to renew its motion if it found such facts.

Federal agencies have been asked to help state officials determine whether Akal officials have criminal records.

"We've seen enough of the allegations to know they are completely false and have no substance," Khalsa said.

An affidavit filed by Jerry Matsuda, administrator of the state Transportation Department's Airports Division, said an official was informed Aug. 27 that a federal security official had become aware of allegations against Akal personnel involving drug trafficking, money laundering and possible connections with international terrorism.

Matsuda said his office is still evaluating Akal's contract. Its work so far has been satisfactory, he said.

The contract was awarded Aug. 16. In its complaint, Akal said the state has not signed its contract yet, although the company was given a purchase order number orally to induce it to start work this month.

"The award of a big contract is a competitive situation," said Khalsa when asked about motives for someone making the complaint. "There are parties who wanted the contract."

Honolulu Airport is the only airport security contract Akal holds.

But it holds contracts with two-thirds of the nation's federal courts and two top-secret military weapons testing facilities.

State law prevents anyone with a felony record from being hired as a security guard, a company official said.

* * *

Nine days later...

September 20, 1999

Airport Security Firm Says Pact Has State OK

Honolulu Star-Bulletin

The operators of Honolulu Airport's new security contract said the state has given them the green light to go ahead with its three-year, $20 million pact.

Daya Singh Khalsa, senior vice president for Akal Security, said on Friday that airport officials indicated that they plan to sign the new contract.

Questions had been raised about Akal, which took over airport security operations Sept. 1.

Many of the company's officers have the same last name, "Khalsa," and that name was linked to a man indicted for drug, racketeering and money laundering charges on the mainland.

Marilyn Kali, state transportation department spokeswoman, said the attorney general's office [ i.e., Ben Cayetano/Earl Anzai ] investigated the allegations and found that they had no merit.

? ? ?

Ten days later...

October 1, 1999

Breakups and break-ins

Pacific Business News

News industry sources say Gannett executives are in town for negotiations relating to the closure of the Honolulu Star-Bulletin, and the Honolulu Advertiser's hiring of soon-to-be-former Bulletin staffers.

Star-Bulletin Publisher John Flanagan announced to the newsroom that it appeared anyone hired by the Advertiser would have to give up their Star-Bulletin severance package in order to retain seniority and vacation time at the morning paper. Flanagan told PBN he's "not in a position to comment" on the matter, which is still in flux....

PBN Staff Reporter Malia Zimmerman wrote about the alleged checkered past of AKAL Security, the winning bidder for the lucrative state airport's security contract.

Last week, on Sept. 22, files and a cassette tape of an AKAL-related interview were stolen from her car.

Coincidence? Figure the odds. Items such as a tape recorder, cellular phone, cash, garage-door opener and other valuables were not taken in the UEMV, or "unauthorized entry into a motor vehicle," which is a Class C felony. The crime was reported to police.

The owner of AKAL has the same last name as an individual with a criminal record, and the allegations turned out to be false.

The break-in, however, was very real....

? ? ?

About two weeks later...

October 16, 1999:

State transit directors ethical infractions

Editorial, Honolulu Star-Bulletin

The issue: Transportation Director Kazu Hayashida awarded contracts to a firm where his wife is employed.

Our view: Hayashida seems to need a refresher course in the state ethics code.

State Transportation Director Kazu Hayashida has been in government a long time, but he hasn't learned much about the ethics law.

Last month he selected the engineering firm KAI Hawaii Inc. for a $1.8 million contract for bridge improvements at Honolulu Airport. The company is owned by his son, Ken.

Attorney General Earl Anzai refused to process the contract, explaining that Hayashida's action gave the appearance of a conflict of interest even though he was cleared by the Ethics Commission. Hayashida said he would no longer handle contract selections involving his son's company.

Now it's been learned that the transportation director awarded two contracts to another engineering firm, Belt Collins Hawaii, where his wife works as an administrative assistant. One contract, for $202,000, was for a master plan and environmental study of an airport at Upolu Point on the Big Island. The other was for $300,000 to design a highway landscape management system. Hayashida said through a spokeswoman that he was not aware that the award was a conflict of interest under the state ethics code.

During the Waihee administration, the state finance director, Yukio Takemoto, resigned under criticism for awarding several nonbid contracts to a computer company headed by a friend. Takemoto was also criticized for spending money on a project that had been rejected by the Legislature.

The Cayetano administration hasn't had to deal with such a scandal to date, although a major supporter of the governor received a nonbid contract to build a school in Kapolei. Cayetano defended the award, saying it was a good deal for the state. But if the developer was doing the state a favor, what did he ask for in return?

Attorney General Anzai made the right call in rejecting the contract that Hayashida awarded to his son's company. As it turned out, however, this wasn't Hayashida's only ethical problem.

The transportation director says he will remove himself from final contract selections involving his wife's company. Perhaps a few instructional sessions with the Ethics Commission would be in order.

* * *

About 45 days later...

November 30, 1999

Airport, stadium security contracts
are up for grabs

by Malia Zimmerman, Pacific Business News

Two state entities -- the Department of Transportation and the Procurement Office -- will soon decide which Hawaii company will be awarded three coveted security-service contracts valued at more than $36 million.

The contracts are for security guard services at Honolulu International Airport; the neighbor island airports; and Aloha Stadium.

The transportation department is expected to begin the bidding process Aug. 5 for the Honolulu and neighbor island airport contracts.

The winning bid may be determined within 10 days after the initial request for proposals is issued.

Collectively valued at $12 million a year over a three-year period, the contracts are coveted because combined they could make the winning security firm the largest in the state. The Wackenhut Corp., a mainland-based security company, has held the contract since 1994.

The bids originally were solicited last August, but the transportation department recalled and re-issued the specifications after complaints by competitors of favoritism toward Wackenhut.

Complaints filed with the transportation department ranged from too short a turnaround time (three weeks from when the specifications were issued to when the bid was due); too short a turnaround time to implement the bid if selected; and a lack of clarity in equipment needed to meet the state's requirements.

But Marilyn Kali, spokeswoman for the state Department of Transportation, said in an interview last year there was no favoritism in the bidding process. She says the state broke the $36 million airport contract into two bids to give more companies and smaller firms a chance to win one of the bids. And she says the attorney general's office would look into clarifying the specifications.

Kali did not return calls to PBN to answer questions regarding the new bid, and no one else from the transportation department involved in the project would comment without her permission....

Ray Romero, Hawaii general manager of Burns International Security Services Corp., says his company bid on the state airport contracts. Burns, established in Hawaii 30 years ago, held the airport contract in the 1970s.

Buzzy Chang, president of Wackenhut, could not be reached for comment.

Also up for grabs is the contract for security guard service at the Aloha Stadium, estimated to be worth around $260,000 annually for 18 guards. The contract, now held by Hawaii Protective Services, likely will be awarded to one of two companies: Wackenhut, which bid $255,000 a year; and Centurion Guard Service, which bid $261,000.

If both are disqualified, the contract will go back to Hawaii Protective Services, a local company owned by Larry Mehau.

Hawaii Protective Services was eliminated from the running because its bid was higher than that of its two competitors....

* * *

Over one year later...

December 28, 2000

Hayashida retiring from DOT

Pacific Business News

Kazu Hayashida, director of the state Department of Transportation, is retiring and Deputy Director Brian Minaai will replace him on Jan. 1. Before Minaai can take over, the Senate must confirm his appointment.

Gov. Ben Cayetano says Hayashida guided the state's efforts in tackling traffic problems and oversaw implementation of the Zip-lane, Vanpool program and test run of the Wikiwiki Ferry demonstration project....

* * *

About seven months later...

September 11, 2001

Terrorists hi-jack four U.S. airline passenger planes and plunge them into the World Trade Center and the Pentagon. The fourth plane, believed to have been headed for the White House, goes down in a Pennsylvania field, killing all aboard.

* * *

About one month later...

October 16, 2001

AIRPORT SECURITY FIRMS AUDITED

The Honolulu Advertiser

The Federal Aviation Administration yesterday began auditing security screening companies at the nation's 20 busiest airports to see if they are completing required background checks on employees, officials said.

The agency and the Department of Transportation's inspector general's office are conducting a separate investigation of Argenbright Security, which was charged by federal prosecutors last week of failing to adequately check airport screeners' backgrounds. The company operates screening checkpoints at 13 airports around the country.

Federal prosecutors said the company hired convicted criminals to work at security check-points at Philadelphia International Airport, after the company was fined $1 million last year for failing to conduct federally mandated background checks....

The review will eventually extend to the nation's 450 airports, FAA officials said yesterday. The agency will begin with the 20 largest airports, which make up 95 percent of passenger valume in the United States.

The review will cover Boston's Logan International Airport, Washington Dulles and Newark International Airport, from where the four hijacked planes involved in the Sept. 11 attacks took off, and both New York City airports....

* * *

< < < ARGENBRIGHT FLASHBACK < < <

Airport Security Co. Fined $1.5 Million

Pleads Guilty to Hiring Criminals as Guards

Oct. 23, 2000

PHILADELPHIA (AP) -- An airport security company was fined more than $1.5 million for allowing untrained employees, some with criminal backgrounds, to operate checkpoints at Philadelphia International Airport.

Philadelphia employees of Argenbright Holdings Ltd. had backgrounds that included drug dealing, kidnapping, aggravated assault and theft.

The company pleaded guilty Friday to two counts of making false statements to the Federal Aviation Administration. U.S. District Judge Marvin Katz on Friday fined Argenbright $1 million, the maximum possible under federal law.

The company had agreed in April to pay $1.2 million in fines and costs for falsifying training and background checks.

Argenbright also must pay $350,000 to 38 airlines and will be on probation for three years, during which time inspectors will conduct audits of its hiring and training, and $200,000</