Hawaii

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Controversies

When in the State Legislature, Hanabusa introduced a bill to offer tax credits of up to $75 million for development at Ko Olina Resort, a move she declared necessary to spur development for the Leeward area but which others saw as a reward for a close associate and political backer, Ko Olina developer Jeff Stone. In 2002 Hanabusa emerged as the leading advocate for legislation authorizing $75 million in tax credits for Stone's Ko Olina resort. When Governor Ben Cayetano vetoed the tax credit bill, Hanabusa took the unprecedented step of suing to overturn the veto.[15][16]

Within months, Hanabusa's then-fiancé John Souza received a preferential deal in purchasing one of Stone's homes in Ko Olina. In February 2005, less than two years after Souza bought the home, he sold it for a $421,000 profit, according to real estate records. Souza and Hanabusa, who were engaged at the time and married in 2008, then bought a $1 million home in another Ko Olina subdivision developed by Centex Homes of Texas.[17]

The Ko Olina tax-credit legislation, intended to promote development of a “world-class” aquarium at the resort, expired after plans for the aquarium were abandoned. Ko Olina Resort eventually returned the tax credit, but the Lingle Administration and Hanabusa disagreed on how to use the returned funds.[18]

While in Congress, Hanabusa was called a "loan shark" by the Center for Responsibility and Ethics in Washington for abusing her position to pay herself excessive interest payments to settling her campaign debt. Hanabusa's spokesperson stated these interest payments were merely repayment of a bank loan.[19]

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https://en.wikipedia.org/wiki/Colleen_Hanabusa#Controversies