Kauai boating office manager resigns in ethics settlement

The Kauai district manager of the state Division of Boating and Ocean Recreation resigned last week to resolve allegations that he falsified records to award 42 state contracts worth tens of thousands of dollars to one contractor without competitive bidding, according a settlement with the state Ethics Commission.

Joseph V. Borden admitted he falsified paperwork to make it appear as if competitive bids had been solicited for the jobs when in fact no other companies were allowed to compete for the work, according to the ethics filing. Borden resigned Saturday and has been fined $15,000.

According to the settlement document dated Dec. 14, Borden did not dispute that he authorized nearly $1 million in payments for 107 jobs from 2013 to 2017 to contractor Aaron Hoff, who does business as South Shore Lawn Services and Hoff Enterprises Inc.

Borden, who became district manager of the Kauai boating office in 2012, could not be reached for comment Tuesday, but according to the ethics report, he testified under oath that Hoff was his friend. Hoff allowed Borden to borrow equipment such as a mower and excavator free of charge, and also provided free CrossFit classes to Borden’s adult son, according to the ethics report.

In 42 of the 107 jobs, state records listed vendors other than Hoff who supposedly submitted bids to compete for the work, but “in fact no such bid ever existed,” according to the Ethics Commission.

Borden told investigators that “he inserted ‘filler’ bids because he was under pressure to have jobs completed quickly and he believed Mr. Hoff would get the work done expeditiously,” according to the ethics settlement.

The filing cites one example in which Borden tried to award a contract to Hoff for $11,979 to remove a tree and an aluminum mast from the Niumalu River, and another contract for $36,458 awarded to Hoff in 2013 to remove a sunken vessel.

In both cases, state records indicated two other companies had submitted higher bids, but representatives from those companies said they never bid for the work.

“Upon being contacted by commission staff, several of these ‘unsuccessful’ bidders expressed anger and frustration that their companies’ names were being used by Respondent Borden in this way,” according to the ethics filing. “One company was listed as an ‘unsuccessful’ bidder on roughly two dozen occasions, even though it had never submitted any of these bids.”

STATE RECORDS also “raise questions as to whether work was actually performed on every job,” and the commission found evidence that some payments to Hoff may have been inflated, according to the commission filing. The filing cites cases where Hoff apparently was paid above-market rates for deliveries of gravel and rental of portable toilets.

“The Commission is troubled that internal control mechanisms did not uncover any potential problems regarding the purchase of nearly $1,000,000 in goods and services — on more than 100 separate occasions — from a private contractor,” according to the Ethics Commission settlement.

“Respondent Borden’s immediate superiors within DLNR should have reviewed these expenditures with greater care and should have required additional verification as to the need for (and prices of) these services,” the commission report said.

ETHICS COMMISSION Executive Director Dan Gluck refused to say whether the case has been referred for possible criminal prosecution, but the commission did alert the Department of Land and Natural Resources and the State Procurement Office to the case “for review and action as appropriate.”

Board of Land and Natural Resources Chairwoman Suzanne Case said in a statement Tuesday that “we very much appreciate the work of the Ethics Commission in investigating these violations.”

“DLNR has been conducting its own investigations on a parallel track. We will be reviewing the Ethics Commission findings carefully and examining our internal procedures, controls and training programs for improvements to ensure strict compliance by all staff with ethics and procurement laws,” Case said in a written statement.

Hoff, the contractor, said in an interview Tuesday that “a lot of this stuff I didn’t even know.” He added that “whatever Joe (Borden) was doing, to drag me in and make me look bad, it’s kind of unfortunate.”

“They call me, I do the work and I do my work well, and I’m honest, and it’s been that way and my reputation has been that for years,” Hoff said. “It’s just the type of person I am. I’m an honest, hardworking person who gives back to the community, and it’s unfortunate that he got himself in a situation.”

WHEN ASKED whether he is friends with Borden, Hoff replied, “I’ve only had a working relationship with him.”

“I help people. I basically have been helping people my whole life. I’m a recovered drug addict and I’ve helped people. I’ve been sober for years and I help kids, and that’s what I do. I have a nonprofit that helps kids get their lives back. His son was basically, like, obese, and I was just trying to help him.”

The ethics report also faulted Borden for repeatedly using state funds to purchase first-class seats on airplane flights in violation of state travel policies; for using state equipment for personal “projects” in violation of the state ethics code; and for using his state email address to conduct business on behalf of the Anahola Farmers and Ranchers Association.

Borden is president of the association, according to the ethics report.

The commission also fined Kauai Harbor Agent Kathy Rosare $1,500 for using state equipment and resources for her personal benefit, and fined Building Maintenance Worker Mel Andrade $2,000 for using state resources for his personal benefit.