Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, September 12, 2013
Man at center of university procurement scandal back on the job
By Malia Zimmerman @ 12:02 AM :: 5920 Views :: Higher Education

Man at center of university procurement scandal back on the job

BACK TO WORK: University of Hawaii Associate Vice President for Capital Improvements Brian K. Minaai has returned to work after being on paid leave as the attorney general investigates allegations against him of favoritism.

by Malia Zimmerman, Watchdog.org, September 11, 2013 

HONOLULU —  The man at the center of a procurement scandal at the University of Hawaii has returned to work.

Brian Minaai, associate vice president for Capitol Improvements since 2008, has been on paid leave for nearly eight months as the state attorney general investigated allegations of favoritism in the procurement of construction projects.

The investigation is ongoing, but Watchdog.org has learned that, just five days before MRC Greenwood stepped down as university president Aug. 31, she authorized Minaai to return full-time.

Minaai is paid an annual salary of $213,768, more than $17,000 per month. While on paid leave Minaai made more than $140,000, plus benefits.

University spokeswoman Jodi Leong maintained Minaai’s work assignments and office location “ensure there is no real or perceived influence or interference with the attorney general’s ongoing investigation into the construction-related allegations made earlier this year.”

The attorney general is aware of Minaai’s return to work, Leong said, saying the university continues to cooperate fully with the investigation.

In February, Dennis Mitsunaga, owner of Mitsunaga & Associates and a prominent engineer and construction contractor, accused Minaai of using his position to marginalize his company’s bids in favor of competitors with ties to Minaai, ultimately increasing the cost of university projects.

Mitsunaga has worked on dozens of government projects in Hawaii, including a $28 million Hilo dorm that opened to students in August. The allegations came in a letter Feb. 14 letter to the Hawaii State Senate in support of pending legislation that would transfer procurement responsibilities from the university to the Department of Accounting and General Services, which manages most state construction projects. His project management team continues to express concern about the project, according to documents sent to the university and acquired by Watchdog.

 University of Hawaii at Hilo.

Watchdog investigations show AC Kobayashi Inc. secured the coveted construction contract to build the entire $109-million West Oahu campus by bidding $1 per month for the job under a “Pre-Construction Services Agreement.”

Ted Hong, a lawyer in private practice in Hilo and a former university regent, said he’s never seen such a deal. He worked as the assistant corporation counsel for Hawaii County for eight years and is familiar with university policy and procurement law.

“Having done procurement cases, I can tell you it is a violation of the procurement code to do something to try to get around the procurement code,” Hong said.

While $1 a month looks like a good deal for taxpayers, industry experts are skeptical. The campus construction has been subjected to 83 change orders, $19 million over the project budget. The university took out an $18 million loan to pay its bills and sell land to pay for cost overruns.

Photo courtesy of UH University of Hawaii West Oahu Campus -- Photo courtesy of UH

Minaai was one of five people who evaluated bids by AC Kobayashi and four other companies, and he helped to select AC Kobayashi.

The company has been awarded other lucrative contracts during Minaai’s tenure at the University of Hawaii, including the $120 million University of Hawaii Cancer Center and the $28 million Hilo student dorm project.

Regarding the University of Hawaii Cancer Center project, Watchdog.org looked into the deal afforded to Honolulu-based Palekana, which obtained permits for the center before it opened in February.

Palekana was a subcontractor for Shimokawa Nakamura, the architect of the University of Hawaii’s Cancer Center, and was paid an estimated $500,000 for permitting work on the center and adjoining parking lot, including about $200,000 for a change order.

Industry experts, including Mitsunaga, questioned why the architect needed a subcontractor to obtain permits and why the change order was so costly, or even necessary.

University spokeswoman Lynne Waters said the university had little information on the subcontractor’s role.

 University of Hawaii’s Cancer Research Center.

Minaai authorized Shimokawa Nakamura as the prime contractor for the project, Waters said, and Palekana obtained 18 permits for Shimokawa Nakamura for what she described as a “complicated building” that includes scientific research laboratories, a commercial kitchen and a seminar room.

The problems at the Hilo dorm haven’t been settled. Mitsunaga & Associates on Aug. 27 sent a letter to the University of Hawaii at Hilo. The letter, from Gary Nakatsuka, Mitsunaga’s Hilo dorm project manager, said the windows approved for the project were not used. Nakatsuka said lower-grade commercial windows — which don’t meet the wind stress criteria — were installed, instead of the heavy-grade commercial windows approved by Mitsunaga,

According to the state Office of Budget and Finance, the state appropriated nearly $400 million between fiscal 2011 and fiscal 2015 for construction projects at the university’s 10 campuses, accommodating some 60,000 students.

While the university has been free to manage its building projects, the allegations and problems on several construction projects led the Legislature to revoke the university’s procurement autonomy during the 2013 legislative session, which ended in May.

Projects under way will remain under the university’s management, but the state Department of Accounting and General Services, the agency charged with overseeing the vast majority of the state’s procurement projects, will oversee new construction.

---30---

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT