WAILUKU - The Board of Ethics suggested that Wayne Nishiki review the county ethics code, but took no further action on a complaint against the Maui County Council member in its decision last month.
An attorney advising the board initially said its decision would not be made public.
But county attorneys said last week that the law allowed them to make the board's opinion public as long as names and other identifying information were redacted, and they released the document Friday. The Maui News had filed a formal request for the document under state open-records laws.
Glenn Kosaka, an attorney for Nishiki, said Friday that his client was satisfied.
"Wayne has always believed this was the proper way for the information to be released . . . because it's in accordance with the law," Kosaka said, adding, "He wasn't hiding anything, as you can see."
The informal advisory opinion released by the board does not name Nishiki, but presents details of the case that are identical to the ethics complaint against him.
Pukalani resident Michael Covich filed the complaint last year, alleging that Nishiki failed to comply with county financial disclosure requirements because he missed the deadline to file forms detailing personal financial information after he became a candidate for County Council in July 2008.
Nishiki's disclosure, which revealed that he had received a $100,000 personal loan from development firm Dowling Co., was filed Oct. 16, three months after it was due, and after he received six reminder phone calls and one warning letter from the Board of Ethics.
The form was not reviewed by the board until its next scheduled meeting, after the Nov. 4 election. Nishiki also did not file the form as required with the Maui County Clerk's Office, where it would have been immediately posted for public review.
However, the state Office of Information Practices has stated that the document was a public record at the time Nishiki filed it Oct. 16.
In the opinion released Friday, the Board of Ethics reviews the facts of the case, and "reminds" Nishiki that elected officials are expected to model "the highest standards of ethical conduct" in order to foster public trust in government.
It also acknowledges that the financial disclosure law is "one of the keystones of the ethics code," because it allows the public a chance to learn about potential conflicts of interest in their elected officials.
The board's opinion goes on to note that Nishiki had filed many financial disclosures in the past and should have been aware of filing requirements.
"The board does not condone (Nishiki's) conduct in this case, and encourages him to familiarize himself with the requirements of the ethics code and the financial disclosure requirements," the opinion states.
The board will take no further action in the case but may consider "more serious proceedings" against Nishiki if he fails to file his financial disclosures on time in the future, according to the opinion.
An attorney for Covich, who had not previously been allowed to see the opinion, was frustrated.
"It's absurdly cryptic," said James Fosbinder. "It doesn't explain why he got a get-out-of-jail-free card, and without explaining that it's pretty pointless to finally have a look at this."
But Kosaka said the board made the right decision.
"We think the board followed the law," he said. "We commend the board for that."
According to financial statements filed last month by Nishiki in a pending divorce, the County Council member has not yet paid back any of the money loaned to him by Dowling Co. five years ago. The court filings report Nishiki still owes $100,000 to Dowling for a loan made in 2004, although he has previously stated the loan was made in 2005.
The filings also state Nishiki has only $300 in cash, assets including a van and household effects, and no savings; and he owes $350,000 on a condo purchased in 1995.
Nishiki receives $5,542 per month from his income as a council member and earns an additional $1,580 in other income, according to the court records. He reported paying $3,230 per month for his mortgage and condo maintenance fees.
Nishiki filed last year for divorce from his wife, Eun Jung Nishiki, whom he married in 2006.
Nishiki in December told the Board of Ethics he had signed a written agreement for the loan he received from Dowling. At the time he said he could not remember the terms but believed it was to be repaid in five years with a 5 percent interest rate. He said he provided no collateral for the loan.
Nishiki had also told the board he had purchased his condominium for a "discounted" price of $125,000 from a woman he described as his girlfriend, and later refinanced the home. In December he said that he used personal savings held in a safe-deposit box to help make his monthly mortgage payments.
Kosaka questioned the relevance of Nishiki's divorce records.
"Frankly, this is supposed to be about the Board of Ethics, and in addition to trying to expand it to the election, now it's expanded to his divorce? Amazing," he said.
* Ilima Loomis can be reached at iloomis@mauinews.com.
