State Senate Minority Leader Kurt Fevella has asked the FBI, Federal Transit Administration and state Attorney General’s Office to investigate the Honolulu Authority for Rapid Transportation on a variety of alleged violations and “possible criminal acts” committed by HART board Chairman Toby Martyn based on media reports.
Fevella (R, Ewa Beach-Iroquois Point) wants the agencies to investigate whether HART violated state procurement laws while soliciting two bids, including a nearly $1 million consulting contract to Colleen Hanabusa, a former congresswoman and HART board chairwoman; committed “possible criminal acts” by Martyn while requesting approval to issue and sell general obligation bonds to fund the project; and committed “possible violations of the Hawai‘i Sunshine law” by Martyn and other HART board members.
“I request each of your departments, as may be applicable, determine if these actions amount to an illegal practice of bid rigging or any other violations punishable by law,” Fevella wrote. “Should your investigation determine any wrongdoing, I further request you take appropriate action against those individuals. … In conclusion, the Honolulu Rail Transit Project is financed by a surcharge on local taxes approved by the Hawaii State Legislature. As a member of this body, I am extremely concerned about the current management of HART and the action of HART Board Members referenced-above who have a fiduciary duty, as stewards of the public trust, to always act for the good of the HART organizations, rather than for the benefit of themselves.”
Fevella’s most serious allegations involved “Possible Criminal Acts of Toby Martyn related to Rail General Obligation Bond Issuances,” regarding Martyn’s “affirmative vote requesting the
Honolulu City Council approve the issuance and sale of ($292 million in) rail general obligation bonds. This action was taken while Mr. Martyn also served as Stifel Financial Corp’s Branch Manager and Vice President of Investments.”
Fevella also alleged that Martyn was involved in a “possible violation” of
Hawaii’s Sunshine Law by meeting with board Vice Chairman Hoyt Zia and board member Lynn McCrory in December.
HART spokesman Joey Manahan said HART had no comment on Fevella’s claims.
On June 8, Jan K. Yamane, executive director and legal counsel for the Honolulu Ethics Commission, told the commission that a news report by Hawaii News Now headlined “Rail bond deal has financial ties to HART chair, but ethics body finds no wrongdoing” and a blog by Ian Lind headlined “Rail bond vote points to potential issue of broader problem in city ethics oversight” were “FACTUALLY INCORRECT.”
“HNN’s and iLind’s articles state that Honolulu
Authority for Rapid Transportation (HART) board Chair Toby Martyn voted
in January 2020 to approve more than $292 million
in rail bonds to pay for
construction,” Yamane wrote.
HNN reported Stifel is one of eight investment companies selected to sell HART bonds, meaning the rail chairman financially benefited from the sale of rail bonds.
”Both HNN and iLind
articles relied on fabricated and inaccurate facts and, thus, reached defective
conclusions,” Yamane wrote.
