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The U.S. government says to comply with federal law it will reclassify its proposed $600,000 community service payment from Matson for spilling 233,000 gallons of molasses into Honolulu Harbor.
The government says it will change the $600,000 to restitution.
When Matson Terminals Inc. pleaded guilty in U.S. District Court in October to two counts of violating the Rivers and Harbors Act, the company agreed to pay the maximum $400,000 in fines plus $600,000 in community service payments, as part of its plea deal with the government. Half of the community service money was to go to Waikiki Aquarium to support coral programs and invasive algae cleanups and the other half to Sustainable Coastline Hawaii.
U.S. Magistrate Judge Richard L. Puglisi expressed concern over the plea deal because Matson’s $1 million proposed payout is higher than the maximum fines authorized under the law. He asked the court’s Probation Office to research the issue and report its findings in a pre-sentence report. Puglisi also scheduled sentencing for Jan. 29.
In November the Probation Office said that instead of preparing a pre-sentence report, it was going to prepare a memorandum on what it believes are the applicable laws and distribute it to both the government and Matson for their response.
The Probation Office filed its memorandum with the court Jan. 5. In it the Probation Office says that the maximum combination of fines and community service payments that the court can impose is $400,000.
On Thursday the Probation Office said the government and Matson filed a joint response in which they say they will change their plea agreement to classify the $600,000 as restitution.
