FBI queries bus firms about school contracts

The FBI has questioned Hawaii school bus contractors and requested documents, apparently as part of an investigation into whether the businesses colluded to push up the cost of services.

Several contractors said they had been contacted by the FBI about six months ago to discuss the bidding process for school bus contracts. They said they are cooperating with the FBI.

The FBI declined to confirm an investigation.

Lindy Akita, chief executive officer of Akita Enterprises, said agents interviewed him and several other contractors and asked for documents, which Akita said he provided to the FBI.

Akita said after the initial interview, however, he was not contacted again and doesn’t know the status of the investigation.

The cost of providing school bus service has skyrocketed in recent years, from $28 million in 2003 to $74 million this year.

The state Department of Education seeks bids for school bus transportation contracts and has said it is looking into why the cost has gone up so dramatically over the years.

To meet the rising costs, the DOE has boosted the price of student bus fares, cut bus service in some areas and increased the distance between the schools and homes that buses service.

The DOE plans to present a report to the state Legislature this month outlining other possible ways to cut transportation costs.

Contractors are working with the department to find ways to pare expenses, and say the increases aren’t because contractors are colluding, but because the cost of providing the service is going up.

The FBI was looking for whether "we were fixing prices," Akita told the Star-Advertiser on Friday. "Let me assure you there is no collusion. I have nothing to hide. I have to make a fair return."

Akita added that part of the reason bus contractors aren’t bidding against each other is because the number of contractors has decreased, as several have gone out of business.

In a statement, contractor Roberts Hawaii said, "We are aware that the federal government is looking at competition on school bus routes and we are cooperating with the investigation."