Item - 2019.EA7.5

The Compliance Audit Committee:

Has decided not to commence a legal proceeding against Abdurahman Gureye.

1. The Compliance Audit Committee met on November 18, 2019 to hear Item EA6.5 and on November 21 to hear item EA7.5 - Abdurahman Gureye - 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 Abdurahman Gureye 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 Abdurahman Gureye as having made two contributions, one of $2,500 and one of $700, for a total contribution $3,200 to the election campaign of Saron Gebresellassi.

5. At the Compliance Audit Committee meeting of November 18, 2019, the candidate and the financial campaign manager were both present. On November 21, 2019, the contributor Abdurahman Gureye and the financial campaign manager, Winta Belay were both present and they addressed the Committee. The Contributor explained that he was aware of the $2,500 contribution limit and made a contribution of $2,500. He explained that he provides public relations services to the candidate in her business activities as a lawyer, and that $700 was an overpayment for business services and returned by him.

The candidate did not attend the meeting on November 21, 2019.

6. For the reasons stated below, the Compliance Audit Committee has decided that there was not a contravention of Section 88.9 of the Municipal Elections Act, 1996. 

There was a contribution of $2,500, which did not exceed the contribution limit. The other $700 amount was a business payment, unrelated to the campaign.

In the Committee's view, the responsibility rests with the candidate to accurately record transactions.

Peter Hearn, BDO Canada LLP gave a presentation on Abdurahman Gureye - 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 EA7.5 - Abdurahman Gureye - 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 Compliance Audit Committee, at its meeting of November 18, 2019, deferred consideration of  Item EA6.5 headed "Abdurahman Gureye - A Contributor in the 2018 Municipal Election who Appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act" to its meeting of November 21, 2019 to allow the City Clerk to make a further attempt to contact the Contributor as the notice sent by registered mail was returned.

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 Abdurahman Gureye 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.