Item - 2019.EA5.1

The Compliance Audit Committee:

Has decided not to commence legal proceedings against Ruwan Jayakody.

1. The Compliance Audit Committee met on November 7, 2019 to hear Item EA5.1 – Ruwan Jayakody - A Contributor in the 2018 Municipal Election who Appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act.
 

2. Section 88.34(2) of the Municipal Elections Act, 1996 requires the City Clerk to prepare a report identifying each contributor to a candidate for office on a council who appears to have contravened any of the contribution limits under Section 88.9.

 
3. Section 88.9(1) of the Municipal Elections Act, 1996 states that a contributor shall not make contributions exceeding a total of $1,200 to any one candidate in an election.

 
4. Attachment 1 to the report (October 22, 2019) from the City Clerk identified Ruwan Jayakody as a contributor that appeared to have exceeded the $1,200 contribution limit to the election campaign of Ashwani Bhardwaj. Specifically, Attachment 1 to the report (October 22, 2019) from the City Clerk identified Ruwan Jayakody to have contributed an in kind donation of $2,000 for the use of a campaign office space to the election campaign of Ashwani Bhardwaj.

 
5. The auditor, BDO Canada LLP, explained their report, attached as Attachment 1 to the report (October 22, 2019) from the City Clerk , setting out the audit process and the findings with respect to Ruwan Jayakody.

 
6. A written submission from the candidate was considered. The contributor and the candidate both appeared and provided information to the Committee.
 

7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Ruwan Jayakody for the apparent contravention of Section 88.9 of the Municipal Elections Act, 1996, as amended, in the total contributions made to the campaign of Ashwani Bhardwaj.
 

There was a contravention of the contribution limit because the individual made an in kind contribution of $2,000, based on the fair market value assigned by the candidate's accountant, which totalled more than the applicable limit. In assessing all of the information provided to the Committee, it is the Committee's view that the candidate was primarily responsible for the error. In view of this, it would be unfair to commence a legal proceeding against the contributor.

Joe Filippelli, BDO Canada LLP gave a presentation on Ruwan Jayakody - A Contributor who Appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.

The Compliance Audit Committee recessed its public session to meet in closed session to deliberate in private on Item EA5.1 - Ruwan Jayakody - A Contributor in the 2018 Municipal Election who Appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act and to receive advice that is subject to solicitor-client privilege.

The City Clerk is sending an external auditor's report to the Compliance Audit Committee for consideration. The auditor completed its review of initial financial statements filed and identified Ruwan Jayakody as a contributor who appears to have exceeded the contribution limits in the Municipal Elections Act, 1996 (Municipal Elections Act). Within 30 days of receiving this report, the Compliance Audit Committee is required to decide whether to: (1) commence legal proceedings against the contributor for an apparent contravention; or (2) not to commence legal proceedings against the contributor for an apparent contravention. The Committee must also provide brief written reasons for its decision. 

The Municipal Elections Act requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2018 municipal election and to prepare a separate report for each contributor who appears to have exceeded any of the contribution limits. The City Clerk retained an external auditor, BDO Canada LLP, through a competitive procurement process, to review all candidates and registered third party advertisers' financial statements and report on each apparent over-contribution.