Does the governor have a conflict because of TMT security contract?

There’s a lot of chatter online about the “conflict of interest” allegedly created because Governor Ige and his wife chose a company to serve as rental agent for their personal residence, which they vacated when he was elected governor. The owner of the real estate company is also an officer of a security company which received a large payment from TMT in 2015. The company is operated by her husband.

So is there a conflict of interest here under the law? I think the answer is clearly “no”.

Here is the provision of the state ethics law pertaining to conflict of interest.

§84-14 Conflicts of interests. (a) No employee shall take any official action directly affecting:

(1) A business or other undertaking in which the employee has a substantial financial interest;
or

(2) A private undertaking in which the employee is engaged as legal counsel, advisor,
consultant, representative, or other agency capacity.

First of all, is the governor subject to the law? Yes, he is. The definition of “employee” includes elected officials, as well as other state workers, along with members of boards and commissions.

“Employee” means any nominated, appointed, or elected officer or employee of the State, including members of boards, commissions, and committees, and employees under contract to the State or of the constitutional convention, but excluding legislators, delegates to the constitutional convention, justices and judges.

I think we can agree that the second part of the conflict provision doesn’t apply to Governor Ige, who is not “engaged” to serve as a representative, advisor, or agent for the TMT.

But the law would preclude the governor from taking action directly if it would affect a business “or other undertaking” in which he has “a substantial financial interest.”

And what does the law consider a financial interest for purposes of the conflict of interest provisions?

And here is the definition included in the law. Keep in mind that not all financial interests create a conflict, it must be a “substantial” interest.

“Financial interest” means an interest held by an individual, the individual’s spouse, or dependent children which is:

(1) An ownership interest in a business.

(2) A creditor interest in an insolvent business.

(3) An employment, or prospective employment for which negotiations have begun.

(4) An ownership interest in real or personal property.

(5) A loan or other debtor interest.

(6) A directorship or officership in a business.

So let’s go down the list of relationships that would trigger a potential ethics violation in this sitaution.

Does Gov. Ige or his wife have an ownership interest in any company owned by Charles and Melanie Long (Pacific International Realty or Private Security Group)?

No.

Do they hold a creditor interest in some former business of the Longs?
No.

Have either of them being negotiating for a job with either company?
No. At least there are no allegations of such.

Do they have an ownership interest in property subject to the governor’s official action?
No.

Have they made a loan to the Longs or their companies, or have other debtor interest?
No.

Are either of them officers or directors of either of the Longs’ companies?
No.

So, where is the conflict of interest or other ethics issue?


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8 thoughts on “Does the governor have a conflict because of TMT security contract?

  1. Natalie

    Thank you once again, Ian. There a lot of misleading and downright false information currently circulating on social media about this issue. I will certainly share this post as I hope others will.

    Reply
  2. Lei

    YES, with reservations. Is an odd ball, largely unknown $3 Million dollar security contract, just dumb luck and coincidence. NO! Associations pay dividends, no one is lucky for no reason…it’s too big a windfall, like a lottery winner. Is the evidence actionable, again NO…but using the well established Democratic logic, guilt by association, with an element of intrigue a possibility by “COLLUSION” YES!
    If the shoe fits President Trumps, the same shoe fits Governor Ige. Too bad the details will likely be tormented in a Muller type report locally, perhaps a State Senate Special Investigation Committee…that ends up accomplishing nothing in the “LONG RUN”!

    Reply
  3. AT

    Oliver Crowell circulated endorsements for TMT never once stating his family got a 3 million dollar contract from TMT. That is not ethical. 3 million dollars is a huge and deliberate omission.

    Oliver Crowell appeared on HNN https://www.hawaiinewsnow.com/2019/07/23/tmt-supporters-say-they-are-silent-majority
    and both Crowell and his daughter Melanie Long appeared on the Imua TMT endorsement. https://www.facebook.com/ImuaTMT/photos/a.2407819246173357/2419137981708150/?type=3&theater

    Reply
  4. AT

    The impassioned letter Melanie Long posted supposedly from her young son to Governor Ige asking Ige’s support for TMT so that Native Hawaiian youth like him would have opportunities rings so phony. She was his real estate agent, yet she posts her sons letter as if the Longs are complete strangers to Governor Ige.

    Reply
    1. Ian Lind Post author

      I tend to agree, but…obviously, there are many engaged people out there who do not agree that it is not worthy of discussion. So how to deal with that? I’m just trying to bite off small pieces of info and share them as I have time.

      Reply
  5. Jeannine

    There are many conflicts of interest and ethics issues Ian. No one would have thought a police chief and his Prosecutor wife had any conflicts or ethics issues, but because one person spoke out, we now know the wide range of conflicts and ethical issues they had. How is it that TMT’s billion dollar companies are being run by a 35 year woman? Why did one of those companies transfer $64 million in assets to Textron, Inc. in 2017, a company that makes helicopters, unmanned drones and tanks for the military? Is the military using the telescopes? Why are the dozen or so TMT “holding” companies allowed to be 501(c)(3)s with millions, especially when they have foreign backers? I think just like with the Kealohas, Bishop Estate trustees, Ron Rewald, etc., questions are good.

    Reply
  6. big hero six

    I wasn’t sure about bringing up Kealoha but since Jeannine did, what’s interesting to me is that there are a whole lot of interesting family relationships that are part of the saga of misused HPD resources for financial crimes. And both Katherine and Louis got to positions of power with assistance, whether knowingly or unknowingly. Let’s also remember that Katherine went on TV to apparently claim the notion that they were victims of an unjust system.

    Hunches are fine HOWEVER you put people in jail with good information and evidence, not innuendo and creativity.

    Reply

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