HILO — Mayor Billy Kenoi’s attorneys reached a stipulated agreement Wednesday with the Hawaii County Board of Ethics for misuse of his county-issued credit card.
The advisory opinion, offered by the lawyers to avoid an investigative hearing in response to a long-delayed complaint, acknowledges there is “probable cause” that Kenoi violated a section of the county’s Ethics Code by using the card for personal expenses, which were later paid back.
The code prohibits use of public property, in this case money, for anything other than a public purpose.
The agreement comes just more than a week after Kenoi was acquitted on criminal charges for purchases prosecutors alleged did not qualify as county business. It also recommends that the mayor stop using the purchasing card, known as a pCard, which he hasn’t had since the state Procurement Office revoked it in April 2015.
That occurred in response to media reports West Hawaii Today broke that Kenoi used the card in late 2013 to cover a nearly $900 tab at a Honolulu hostess bar, which he paid back four months later. A separate hostess bar transaction also was reimbursed.
Kenoi did not attend the meeting, held in the Hilo County Council chambers in the same building as his office, frustrating board members who were expecting that he’d be there.
“This really warranted his presence,” said Chairwoman Ku Kahakalau, who prepared questions for him.
His attorneys, Todd Eddins and Richard Sing, declined to comment following the decision. Eddins said the mayor would not be commenting.
But the lawyers, who spoke to Kenoi over the phone to get his approval, appeared satisfied with the arrangement, which allows the book on Kenoi’s pCard scandal to be officially closed shorty before he leaves office.
His critics also were happy.
“That’s the best I’m going to get, so that’ll do,” said Lanric Hyland, who filed the ethics complaint in spring 2015. He did not attend the meeting because of a health problem.
“It would have been nice if it was a bit more timely,” Hyland added via phone.
The board delayed the complaint multiple times because of concerns that it could impact his trial in Hilo Circuit Court.
Kohala Councilwoman Margaret Wille said the agreement was appropriate, though she wanted to see Kenoi offer to do some community service.
“I’m glad the board has a little bit of spine,” she said.
Board members at times traded barbs with Kenoi’s attorneys, who sought to get the complaint dismissed over procedural issues.
Sing and Eddins criticized the complaint for not offering evidence other than newspaper articles.
Before offering the deal, they also asserted the trial showed Kenoi did nothing wrong.
“It’s been established the mayor is not a thief. The mayor is not a liar,” Eddins said. “We object to the process. He’s been acquitted.”
Board members Rick Robinson and Doug Adams appeared flustered by Kenoi’s absence and unsatisfied by the amount of cooperation they were getting from his attorneys.
Adams said it was “beyond the pale” that they said they didn’t know what was coming after a series of meetings on the issue during the past year and a half.
“What were you expecting us to do? I mean come on,” Robinson asked.
After Sing referred to the matter as “serious,” Robinson replied, “Then be serious and respond.”
Eddins said the board didn’t properly communicate how it was going to address the issue that day, making it difficult to prepare.
Vice Chairman Ken Goodenow said he was “conflicted over the issue,” but asserted the county needed to clarify the pCard rules for employees.
Kahakalau said she would work with staff on drafting an advisory letter to all employees who use a pCard.
During trial, the state attorney general’s office argued that Kenoi committed theft or other offenses by using the pCard for 15 charges it said were personal or involved hundreds of dollars worth of alcohol. One included a hotel stay at Hapuna Beach Prince Hotel for a nephew as a wedding present.
Kenoi reimbursed the county for 14 of the charges, including the hotel stay, throughout a period of months or years.
An East Hawaii jury cleared the mayor of all criminal charges Nov. 1.
In total, Kenoi reimbursed the county for nearly $32,000 of his $130,000 in pCard charges. His attorneys argued some of those reimbursements were for legitimate county business.
Email Tom Callis at tcallis@hawaiitribune-herald.com.
