The loans represent 23 percent of Morgado's fund-raising effort this year in his unsuccessful mayoral campaign. There was no collateral offered, and Morgado claims to know little about the loans.

Morgado, an official with First Hawaiian Bank, said that although the loans were made through his campaign and are not personal loans, he feels responsible to pay them off. "We are obligated to pay interest on the loans and ultimately to repay the loans," he said.

The loans, however, remain shrouded in mystery. The law requires only that the most basic information be divulged.

Campaign Spending Commission Executive Director Robert Watada has tried unsuccessfully for three years to get the Legislature to crack down on big, untraceable loans made to candidates. He promises to suggest similar legislation again this year.

Morgado and his campaign officials declined to give specific details about the loans, although they did comply with Campaign Spending Commission regulations by listing the loans in reports.

One loan, the $100,000 Sakamoto loan, was made by someone who Morgado said he didn't even know.

Sakamoto refused to talk to the Star-Bulletin about the loan.

Morgado suggested checking with Mijo, who, Morgado said, was one of several people helping to raise money. "The responsibility was given to Gary Mijo and others in the campaign," Morgado said.

Mijo said, however, he didn't know anything about the Hanabu sa and Sakamoto loans. "I thought I was the only one loaning money for the campaign," Mijo said. "She's not my contact. I never solicited her."

The loans point out a loophole in the campaign spending law, Watada said. "You can't trace where the loan comes from quite often," he said. "It is a tremendous loophole and I think it will continue to be used."

Because of the way the law is written, the public can't tell how the money was loaned to the candidate. For instance, Watada said, a person could collect money from several donors who wanted to give more than the spending limit allowed, put all the donations into one and then give that to the candidate in the form of a loan.

"It is impossible to tell if money was bundled," Watada said.

"The impact is that you don't have a contribution limit per se, a contributor can come up and give any amount.

"When you have that hole there, it is a big hole," Watada said.

Mijo said the $149,496 loan was mostly his own money, but he did borrow some funds from a bank.

Morgado, however, said he didn't know how the loans were made. He said he didn't think any collateral was offered to secure the loans.

All he would say is that the loans were worrisome.

"Although I am told by the campaign that it is not a personal loan, that it is a debt that the campaign owes, the problem is the campaign is under my name," Morgado said.

On a "very few occasions," Morgado did say he had been involved in fund-raising by personally asking for money. The loans weren't part of those personal pleas, Morgado said.

He explained that Mijo was a personal friend and that Hanabusa is the mother of a key campaign official, Colleen Sakurai.

"I have personal relationships with both Gary and Mrs. Hanabusa, I never talked to them about the loans, our friends did talk to them," Morgado said.

Mijo and Morgado worked together in Morgado's unsuccessful 1994 campaign for mayor.

Mijo is something of a Democratic Party insider and says he donates more than $10,000 in every election to candidates for the state Legislature.

"All Democrats, because I believe in them," he said.

Mijo was a special agent with the Internal Revenue Service from 1966 to 1985, did criminal investigations and helped with the Nappy Pulawa organized crime conviction.

He worked for former Gov. John Waihee as a state Tax Department deputy director in 1987, but left to manage the Kapiolani Coffee Shop.

Mijo is also a former president of the United Okinawan Association. He worked on Gov. Ben Cayetano's election campaign two years ago and is a strong supporter of Cayetano's re-election.

She did not return repeated calls from the Star-Bulletin.

Her mother also declined to talk about the loan to Morgado's campaign.

Campaign records show that Morgado has paid Hanabusa $886 in interest on her $90,000 campaign loan.

Mijo also said Morgado had paid him interest on the loans, but he hadn't cashed the checks yet.

Two years ago, Republican Pat Saiki borrowed $600,000 from four individuals when she ran for governor. She still lists debts of more than $588,000.