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Case: Federal review of Hawaii COVID spending likely after corruption indictments
SA: … U.S. Rep. Ed Case, a member of the House Appropriations Subcommittee on Homeland Security, said he expects federal scrutiny of Hawaii’s COVID-19 contracts following a public corruption indictment involving Lt. Gov. Sylvia Luke and four others.
The charges against Luke, former state Rep. Ryan Yamane, state Airports Administrator Ford Fuchigami and businessman Tobi Solidum stem from alleged actions between 2020 and 2022, when Hawaii was operating under emergency COVID-19 proclamations and lawmakers were seeking funding for testing, vaccinations, contact tracing and other response efforts.
A central focus of the indictment is House Bill 2392, an emergency appropriations measure introduced by Yamane in January 2022 that ultimately provided about $170.4 million for COVID-19 response activities, including testing, monitoring, reporting, supplies and staffing.
Case said Monday in an email to the Honolulu Star-Advertiser that the bribery allegations could prompt a federal audit or review of Hawaii’s COVID-19 contracts and spending.
“As a Member of the House Appropriations Subcommittee on Homeland Security, which oversees and funds (the Federal Emergency Management Agency), I have a direct interest in ensuring federal FEMA dollars are spent appropriately and with full accountability,” Case said. “If there are credible allegations of waste, fraud or abuse involving federal funding, those concerns deserve a thorough and transparent review.”
He said it remains unclear whether FEMA still has COVID-19 funds left to obligate to Hawaii….
KITV: Hawaii corruption case puts probe on $300M in Covid money
Read … Federal review of COVID-19 spending likely after corruption indictment, Case says | Honolulu Star-Advertiser
Trump Budget Zeroes Out Native Hawaiian Block Grant -- ‘racial-not tribal’
SA: … The Trump administration’s 2027 federal budget proposal calls for full elimination of the $489 million Native Hawaiian Housing Block Grant, central to funding DHHL’s ambitious and well-justified plans to create and repair thousands of additional homes, along with essential infrastructure and facilities.
Language in the budget declares that Native Hawaiian entitlements are illegitimate because Hawaiians are a “racial group,” distinguishing Hawaiians from Native Americans who are members of a “sovereign tribal nation,” recognized by the feds. …
REALITY: Lawsuit: Hawaiian Homelands Will Win Because OHA Lost
Read … Editorial: Federal cuts harm Native Hawaiians | Honolulu Star-Advertiser
The search for the $35,000 cash bribe in a paper bag comes up empty
ILind: … There is nothing in the 30-page indictment about $35,000 changing hands, in cash or otherwise, and no mention of a paper bag. …
The indictment does not allege the original contract awards were obtained through bribes. Instead, the criminal charges center on early a moment in early 2022, when federal emergency funding was drying up and contractors and state officials were scrambling to secure state appropriations to maintain testing operations.
According to prosecutors, Solidum made cash payments and issued checks to then-State Rep. Ryan Yamane—chair of the House Health Committee—between 2020 and 2022 in exchange for legislative influence and insider access. Solidum is also alleged to have directed a $7,000 payment to Ford Fuchigami on January 30, 2022, for legislative assistance while Fuchigami was serving on the staff of the Senate Ways and Means Committee.
Notably, the indictment contains no allegations that Sylvia Luke accepted any personal cash payoffs. …
Despite early media focus on the Lieutenant Governor, the State’s own filings position her far from the center of the conspiracy. As Deputy Attorney General David Van Acker acknowledged when the indictment was unsealed: “If we’re looking at the most culpable individual factually, we believe that is Ryan Yamane.”
With Solidum absent, Yamane faces the heaviest allegations involving direct off-the-books payments. Fuchigami faces charges tied to his $7,000 payment, while Asuncion is charged with making false statements and concealing records regarding the checks, though he is not accused of taking bribes.
For Luke, prosecutors are attempting to convert two political contributions—deposited in a campaign bank account—into criminal bribery. Because Hawaii courts have yet to establish a clear legal line distinguishing legitimate political contributions from criminal bribery, prosecutors face a steep hurdle in proving an explicit quid pro quo….
Lieutenant Governor Sylvia Luke is Innocent: “I genuinely feel sorry for Lieutenant Governor Sylvia Luke. Objectively speaking, she has been catching strays for years over a brown paper bag stuffed with $35,000 that she didn’t even take. Here’s a novel idea: perhaps the Feds could finally just name and charge the actual "influential lawmaker" they’ve been vaguely referencing in their filings, so this lingering cloud of impropriety can finally be lifted.”
HNN: Plea hearing set for officials charged in bribery scandal | Hawaii News Now
Read … The search for the $35,000 cash bribe in a paper bag comes up empty | i L i n d
Betting On Hawaiʻi Politics Is Legal Despite State’s Gambling Ban – Are You Getting in on the Action?
CB: … When Gov. Josh Green used words like “homeless,” “mainland” and “tourism” during his state of the state speech in January, online bettors raked in about $450,000.
Users on the app Kalshi are currently wagering on whether state Sen. Jarrett Keohokalole will unseat U.S. Rep. Ed Case in this year’s primary election (it’s basically a toss-up). You can even bet on whether indicted Lt. Gov. Sylvia Luke will step down before Sept. 1.
In Hawaiʻi, a state that bans all forms of gambling — both in person and online — prediction markets like Kalshi and Polymarket are operating through a legal loophole that allows users to bet away their money with risks similar to what they’d face at a casino. On prediction market platforms, users who bet on a future event, and guess its outcome correctly, can win a payout from those who guessed wrong, and the platforms collect a fee. ….
Read … Betting On Hawaiʻi Politics Is Legal Despite State’s Gambling Ban - Honolulu Civil Beat
Indictment sparks pretend call for special session on contractor donation ban
HNN: … Indictments against Lt. Gov. Sylvia Luke, current and former state employees, and a contractor in an alleged bribery conspiracy are prompting calls for a special legislative session focused on campaign finance reform.
Some lawmakers are pushing for a return to the Capitol to take up Senate Bill 2530, a measure that would ban government contractors and their immediate family members from donating to political candidates.
SB 2530 had House support last session, but died in the Senate over disagreements about how broad the restrictions should apply to a contractor’s relatives….
Special sessions are rare and typically called to fix immediate issues.
“To address something that simply can’t wait because of some deadline or because of some pending crisis,” said HNN political analyst Colin Moore.
The state has previously held special sessions over a same-sex marriage bill in 2013 and in 2017 over rail funding.
Moore said lingering disagreements between the House and Senate over contractor donations could pose a problem.
“You wouldn’t want to call a special session only to have that debate again if these haven’t been ironed out,” he said….
Read … Indictment sparks calls for special session on contractor donation ban | Hawaii News Now
Maui Council advances new hotel zoning for over 2,000 apartment-district vacation rentals
MN: … The Maui County Council voted 7-1 twice Friday to send the Maui Planning Commission a pair of resolutions that could permanently move roughly 2,056 apartment-district transient vacation rental units into new hotel zoning, over the objection of the Office of Hawaiian Affairs and Council Member Keani Rawlins-Fernandez, who cast the lone “no” votes. Council Member Gabe Johnson was absent for the votes.
The properties are currently subject to Ordinance 5909, known as Bill 9, which will phase out short-term rentals in A1 and A2 apartment districts and return those units to the local housing stock. Resolutions 26-110 and 26-111 would refer specific categories of those properties — timeshares, leaseholds, single-ownership units, properties with variances, and units the County says operate like hotels — to the Planning Commission for reclassification into the county’s new H3 and H4 hotel districts, where vacation rental use would be permitted outright.
Among the complexes impacted by the proposed change of zoning from apartment to hotel is the Kāʻanapali Royal, located at 2560 Kekaʻa Drive, Kāʻanapali. Owners of the complex were among the first to file a lawsuit challenging implementation of Bill 9....
Read … Maui Council advances new hotel zoning for over 2,000 apartment-district vacation rentals : Maui Now
These ‘Historic’ Oʻahu Homes Pay Practically No Property Tax
CB: … Named after its original owners, prominent Hawaiʻi neurosurgeon Dr. Ralph B. Cloward and his wife, the property was the setting for elegant gatherings during the 1950s and 1960s where guests could enjoy the sea views framed by the palm trees on the manicured lawn.
Based on its $16.2 million value today, its current owner, a Denver-based company, would expect to pay an annual tax bill of $57,000.
What they actually pay: $300. …
The home is one of 470 residential properties on Oʻahu that claim a historic tax designation that slashes tax bills for property owners. More properties than ever are claiming this tax cut, and a Civil Beat review shows many of those enjoying its benefits are among the island’s wealthiest.
The county enables these property owners to exempt up to 100% of their home value from property taxes because of the historic significance of their homes….
Read … These Historic Oʻahu Homes Pay Practically No Property Tax - Honolulu Civil Beat
Designed to Fail: City Pretends to eye Kapaa Quarry for Oahu's next landfill
KHON: … The City is eying Kapaa Quarry as a potential site for Oahu’s next landfill, and Windward lawmakers are pushing back.
They also have concerns about changing State law in order to build a landfill in Kailua.
(TRANSLATION: This designed-to-fail proposal is intended to justify continued use of Waimanalo Gulch.)
City officials confirmed that Honolulu Mayor Rick Blangiardi wants to work with the Legislature to amend Act 73.
“So, I don’t think it’s a good sign. I think the protections in Act 73 are there for a reason,” Rep. Lisa Marten said. “Kapaa Quarry is near a school. Near a hospital, near homes. It’s upstream of what is now declared a Ramsar Wetland of International Importance.”
Act 73 requires at least a half-mile buffer between new or expanding waste disposal facilities and any residential property, school or hospital.
Councilmember Esther Kiaaina said a landfill in Kapaa Quarry wouldn’t just be an environmental and social concern.
(CLUE: Blangiardi is helping Kiaaina look like a hero. She may be next Council Chair?)
“It is one of the largest sources of concrete for our construction industry on the island of Oahu. It likely has up to 50 years of capacity,” Kiaaina said. “My question is, do you want to have an impact on our, on our, our building industry, our construction industry, both for residential homes as well as for developing housing?”
Windward Oahu has been home to five landfills since 1940, and Kaneohe Marine Corps Base still maintains a disposal facility to this day.
“If the rationale for not having it on the west side is that they’ve already paid their dues and had their turn, so have we,” Rep. Marten said….
Read … City eyes Kapaa Quarry for Oahu's next landfill
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