WAILUKU, Hawai'i — Three former Maui county employees claim in a lawsuit they were retaliated against for reporting misuse of federal funds while they were employed by the Department of Housing and Human Concerns.

A similar suit filed in federal court two years ago was dismissed last month after a judge ruled they failed to provide facts to support the allegation that county officials violated their First Amendment right to free speech or retaliated against them.

However, the judge said the plaintiffs could resubmit their claims in state court.

The new lawsuit filed May 20 in 2nd Circuit Court cites the Hawaii Whistleblower's Protection Act. It was filed by former Grants Administrator Veranio Tongson, housing inspector Jeffrey Javier and housing program compliance specialist Kim Nemoto.

Tongson alleges that department officials improperly released money for grants and were involved in other misuse of funds in 2002 or earlier. Then Tongson said he was retaliated against by being falsely accused of and disciplined for sexual harassment, and transferred to the Housing Division.

Javier and Nemoto said Housing Division Officials falsified records in the Section 8 rental assistance program, including approving rentals that failed inspections. Alleged retaliation included increased scrutiny and threats that they would be fired.

Section 8 is a low-income rental assistance program funded by the federal Department of Housing and Urban Development and administered by the county.

One of the county's attorneys had no comment on the new lawsuit.

"The county will defend vigorously, as we have done in the past," said Cheryl Tipton, who argued the previous case for the county.

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Information from: The Maui News, www.mauinews.com