Item - 2019.EA6.6

The Compliance Audit Committee:

Has decided not to commence legal proceedings against Mohamed Hassan.

1. The Compliance Audit Committee met on November 18, 2019 to hear Item EA6.6 – Mohamed Hassan - 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(3) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to a candidate for the office of mayor in the City of Toronto is $2,500.

4. Appendix A to the report (October 31, 2019) from the City Clerk identified Mohamed Hassan as a contributor that appeared to have exceeded the $2,500 contribution limit to the election campaign of Saron Gebresellassi. Specifically, Appendix A to the report (October 31, 2019) from the City Clerk identified Mohamed Hassan to have contributed $3,000 to the election campaign of Saron Gebresellassi.

5. The contributor and the candidate both appeared and provided information to the Committee. The Committee was informed that a $300 contribution has been made but was recorded in error as $3,000.

6. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Mohamed Hassan for the contravention of Section 88.9 of the Municipal Elections Act, 1996.

There was not a contravention over the contribution limit because the individual made a contribution of $300, which is significantly below the contribution limit, not a contribution of $3,000.

The Committee considers that it is the candidate's responsibility to monitor the contribution limits. The candidate was provided with written material by the Clerk outlining the contribution limits.  Additionally, the Clerk offered multiple training sessions to candidates.

Joe Filippelli, BDO Canada LLP gave a presentation on Mohamed Hassan - 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 EA6.6 - Mohamed Hassan - 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 Mohamed Hassan 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.