A former Honolulu airport employee who was arrested for suspected theft at work was subsequently fired when he was caught on video returning allegedly stolen equipment, according to disciplinary records obtained by Civil Beat.

Arnold K. Keawe Sr., an automotive mechanic supervisor, was arrested during a raid of the airport baseyard on April 8, 2021 as part of a probe by the Hawaii Attorney General’s Office. 

Within days, the Hawaii Department of Transportation reviewed its CCTV footage and other records and noticed the return of two riding mowers, a mechanic’s toolbox and a state van that had been missing. Keawe admitted he removed the equipment from the airport’s base yard because he “volunteered” to refurbish the items in his spare time, a DOT disciplinary memo states. 

Keawe said his boss approved of the arrangement, but the supervisor denied this, the report states. Investigators found Keawe’s claim “not credible.”

“From the inspections and pictures of the two mowers, (it) does not appear that parts have been removed to conduct repairs,” the memo states. “Although the two mowers, the Dodge van and the toolbox were returned, the removal without authorization is considered theft.” 

Keawe was officially terminated as of July 22, 2022, according to the DOT. 

The disciplinary records, released by the DOT in response to a public records request, shed new light on an investigation by the Attorney General’s Office in which at least seven people have been arrested but none have been charged.

After Keawe’s arrest, the airports division launched an administrative investigation including possible “illicit procurement matters” involving a local business, Ewa Beach Auto Repair, and allegations regarding the falsification of overtime, according to the disciplinary memo.

However, investigating those aspects of the case would be “too extensive, complex and difficult,” the memo states, and pursuing those leads would be “duplicative” of the AG’s probe. In the end, the theft case alone was enough to cut Keawe loose. 

While Keawe’s name and identifying details were redacted from disciplinary records, an earlier disclosure by DOT revealed his identity as a fired employee. Attempts to reach Keawe for comment were unsuccessful.

Keawe had worked for the DOT’s airports division since 1998 and had no prior record of discipline, the records show. In a statement submitted to departmental investigators, Keawe denied wrongdoing and said he holds himself to “the highest standards.”

Regarding the mowers, Keawe said he intended to fix one while using the other for parts. 

“At the time we only had (two) working mowers with no spare back up,” he wrote. “There were no vendors who carried or repaired these models.” 

The Dodge van was “inoperable for many years,” he said, and the cost of repairs would’ve exceeded its value. Sometime after 2017, Keawe said he got permission to tow it home to refurbish it. 

“Time and circumstance delayed the return of the van,” he said, citing Covid-19 and other factors. 

As for the toolbox, Keawe said he intended to install additional features onto it, including an LED light strip and a battery charger. He noted the airport’s auto repair shop has faced “budget constraints, restriction of overtime, non-compliant vendors, limited resources and manpower.” 

“These items were NEVER used for personal or other uses,” he wrote. “It was strictly to salvage, repair & install safety equipment.” 

While the administrative investigation did not seek to repeat the work of state prosecutors, the records hint at aspects of the AG’s investigation. 

The records note that an unnamed “family member” helped Keawe unload some of the returned goods. Arnold’s brother, longtime correctional officer Kenessey Keawe, was arrested in the AG’s probe in May 2021, according to Hawaii News Now.

Kenessey Keawe has not been charged in the case. He did not respond to a request for comment. 

Freddie Carabbacan, a Hawaii deputy sheriff who runs Ewa Beach Auto Repair, was also arrested in July 2021 for suspected second-degree theft. 

In an interview, Carabbacan said he did nothing wrong. He said hasn’t heard from the AG’s office since his arrest and hasn’t been charged. According to Carabbacan, the airport hired his business to fix state vehicles, billing it to a company run out of Carabbacan’s home, Hawaii Government Support Services. 

Carabbacan’s company was on Arnold Keawe’s short list of those who were compliant with state requirements and willing to do the work, according to Carabbacan. Ewa Beach Auto Repair later submitted the sole bid for a vehicle repair contract but it was canceled after the state raided the baseyard, Carabbacan said.

“Naturally, they think I’m paying them bribes or whatever because the AGs, they’re not the greatest investigators,” Carabbacan said. “They think the reason we’re getting all the work is because I’m giving Arnold or whoever kickbacks.”

The real reason, according to Carabbacan, is many shops didn’t want the work, did poor quality repairs or had issues – like unpaid taxes – that would disqualify them from a state job.

State officials questioned Carabbacan about allegations that he was up-charging the state, such as billing $900 for a $600 part, he recalled. But Carabbacan said that’s a normal markup for a business that has expenses and needs to make a profit.

“Everything was done legit,” Carabbacan said. “It wasn’t overcharged, it wasn’t overpriced. It was actually in the middle. Every time we touched a vehicle, it stayed fixed, (unlike) the other shops the state does business with.”

Carabbacan said the officers “treated me like a criminal” and took his phone without a search warrant. To this day, he said it hasn’t been returned to him.

Now Carabbacan said he’s considering filing a lawsuit over the damage to his reputation. His business was impacted once his name hit the news, he said, and he has been on unpaid leave from his job as a sheriff since his arrest.

It’s not the first time Carabbacan has been out of work. The Department of Public Safety fired Carabbacan in 2015 over improper strip searches of female inmates, one of which resulted in a $7 million state lawsuit payout. However, Carabbacan was ultimately reinstated and said on Wednesday that he had followed his training.

As for the current case, Carabbacan said the state owes him some $80,000 for work his business did but never had a chance to invoice before the raid.

“I didn’t steal from the state. The state stole from me,” he said. “Arnold was my friend. I did whatever I could to help him. Whatever we could do and not charge, we did it, just to help the baseyard out.”

The AG’s office declined to comment on the investigation.

“The case is ongoing with the Department of the Attorney General,” AG spokesperson Toni Schwartz said in a statement. “We have nothing new to report at this time.”