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County to audit contracts awarded to Choy’s companies

Honolulu businessman accused of bribing former Maui County official

Mayor Michael Victorino is ordering an audit of all no-bid contracts awarded to companies owned by Milton Choy, a Honolulu businessman who was recently charged with providing more than $2 million in bribes to a former Maui County official to influence wastewater contracts.

Victorino said he called for the audit of both past and current contracts on Thursday, when the charges were unveiled by federal prosecutors, and sought to distance himself from the allegations of a bribery scheme that reportedly ran from 2012 to 2018.

“Allow me to be crystal clear. The events that led to corruption charges involving former Maui County official Stewart Stant and Honolulu businessman Milton Choy occurred during the previous administration,” Victorino said in a statement on Friday. “I strongly condemn public corruption in all forms. I am committing my administration to fully cooperate with law enforcement investigators.”

When asked whether the audit would be done by the county or an outside auditor, county spokesperson Brian Perry said he was “not sure.”

On Thursday, the U.S. Attorney’s Office announced charges against Stant, the former director of the county Department of Environmental Management, and Choy, owner and manager of the Honolulu-based wastewater company H2O Process Systems.

Choy is accused of providing more than $2 million “in financial benefits and gifts” to Stant from October 2012 to December 2018, including direct deposits to Stant’s bank accounts, cash and checks given directly to Stant, gambling chips on trips to Las Vegas, airfare and hotel rooms, according to court documents.

In turn, federal prosecutors allege, Stant helped direct at least 56 sole source contracts to H2O Process Systems worth about $19.3 million. Sole source contracts can be awarded without a competitive bidding process when only a certain company can provide the service or product the county is seeking.

Stant previously served as maintenance manager of the Wastewater Reclamation Division before being appointed head of the department in December 2015, serving until December 2018, shortly before Victorino’s administration officially took office.

Maui County Council Chairperson Alice Lee said Friday afternoon that depending on what the audit finds, “we may want to initiate a formal investigation.”

“We could initiate the investigation as a council or we could refer this to the prosecuting attorney’s office for further follow-up,” Lee said.

Lee, who served on the council from 1989-1998 before being reelected to the council in 2018, said she was “surprised” to hear about the allegations. She said the council isn’t involved in reviewing the administration’s contracts before they’re executed.

When asked what action the council might take to root out similar corruption, Lee said, “I wouldn’t jump to any conclusions,” pointing out that when she was housing director from 1999 to 2005, directors had to go through several steps to get a contract approved — including legal and budgetary review — before the Finance Department could eventually cut a check.

“It’s very difficult not to be reviewed and monitored. Directors don’t have that kind of unilateral power,” Lee said.

Choy and Stant are set to appear in court on Monday.

* Colleen Uechi can be reached at cuechi@mauinews.com.

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