Perhaps the ethically opaque part-time mayor/part-time banker dug into his Territorial salary and paid off the chief to "shut up and fade away"?

Nah...can't imagine he'd do something so selfless. 

You just got tossed like last week's trash, Chief Kealoha. Thank you for your service.

Now can we just make Ms Sheehan the commission chairperson and dump this Sword character (obviously in deep cahoots with the part-time mayor)??