Hawaiian Naval Firm’s Campaign Contributions and Federal Contracts in South Carolina

A recent investigation highlights campaign donation practices by a Hawaiian naval firm, Navatek, which targeted influential politicians in South Carolina. Key figures include Lindsey Graham and James Clyburn, who reportedly helped direct federal funds to Navatek.

Navatek’s Controversial Practices

Questions have arisen about the merit of Navatek’s federal contracts. A former CEO described their effectiveness as dubious, labeling them a ‘grand lie.’ The investigation outlines specific meetings and transactions with pivotal political figures.

“The whole thing is a grand lie,” said the former CEO.

Graham’s Dinner Meeting

On March 3, 2020, Senator Lindsey Graham held a meeting at Charlie Palmer Steak in Washington, D.C. with executives from Navatek. Graham required $40,000 in campaign contributions for the meeting. Navatek’s CEO, Martin Kao, expected a quick agreement, suggesting no pretense of genuine interest was needed.

Kao recounted to investigators that Graham agreed to steer a $10 million contract to Navatek, in exchange for $100,000 to his campaign. This scenario drew FBI scrutiny, leading to a broader investigation.

FBI Investigation

In early 2025, the FBI launched a corruption probe focused on this meeting. Kao confessed to concocting a bribery scheme, providing federal officials with worthless research in return for contracts. The scheme implicated several Congress members, although proving corruption in court remained challenging due to recent judicial rulings.

Despite obstacles, including potential credibility issues with Kao himself, the FBI pursued the case further, debriefing two former Navatek executives under investigation for bribery. Although Graham, Clyburn, and Wilson were not officially named suspects, their interactions with Navatek were closely examined.

Impact of Political Changes

President Trump’s administration curtailed the investigation after dismantling federal agencies addressing public corruption. Experienced agents and prosecutors involved in the case were affected by these changes, effectively stalling the inquiry.

This reporting is part of a comprehensive look at Navatek’s influence in federal appropriations and its questionable strategies in securing contracts through political donations.

Ongoing Developments

ProPublica’s findings rely on a thorough review of legal documents, emails, and interviews. Their investigation uncovered significant details about how Navatek operated, including vague direct exchanges between political contributions and governmental support.

Despite these revelations, Kao is currently the only individual imprisoned, facing charges related to campaign contributions and loan fraud. Following significant shifts in law enforcement focus, the investigation languished, with critical agents and prosecutors resigning or being removed.

Outcomes for Involved Parties

Lindsey Graham has passed away, and his political seat is now filled by his sister Darline Graham, who retains much of his senior staff. Rep. James Clyburn remains influential in Washington, while Rep. Joe Wilson continues to play a key role in defense spending decisions.

Spokespersons for Clyburn, Wilson, and the late Graham denied any wrongdoing, dismissing claims of quid-pro-quo behavior. After the scandal, Navatek operations transferred to new entities run by former executives Hartman and Knight, who have launched a new successful firm, Integer Technologies.

Kao’s failed ambitions to mold Navatek into a defense contracting powerhouse are a testament to the complex interplay of money, politics, and influence within government contracts.