Item - 2019.EA7.6

The Compliance Audit Committee:

Has decided not to commence a legal proceeding against Christien Levien.

1. The Compliance Audit Committee met on November 18, 2019 to hear Item EA6.7 and on November 21, 2019 to hear Item EA7.6 – Christien Levien - 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 Christien Levien 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 Christien Levien as having made two contributions of $2,500 each for a total contribution of $5,000 to the election campaign of Saron Gebresellassi.

5. On both November 18, 2019, and November 21, 2019, the financial campaign manager, Winta Belay was present and addressed the Committee about this matter on November 21. The contributor was not present on either day.

6. For the reasons stated below, a majority of the Compliance Audit Committee, Lawrence D'Souza and Joe Wong, has decided not to commence a legal proceeding against contributor Christien Levien for the contravention of Section 88.9 of the Municipal Elections Act, 1996.

The contributor provided very confusing statements. There was no contravention of the contribution limit because according to the campaign finance manager, Winta Belay, there were two contributions of $2,500, and one contribution was returned to the contributor. Ms. Belay provided some additional documents.

7. The third member of the Compliance Audit Committee, Chair Isabel Meharry, is dissenting from the majority. Ms. Meharry found the contributor's memo of November 10, 2019 to be in conflict with the testimony and documentation provided by Winta Belay. Due to this conflict, she was of the view that it was not possible to determine if there was a contravention of the contribution limit, and if there was a contravention of the contribution limit, whether a legal proceeding was warranted.

Peter Hearn, BDO Canada LLP gave a presentation on Christien Levien - 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 EA7.6 - Christien Levien - 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 EA6.7 headed "Christien Levien - 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 Contributor to provide more information related to the contribution, in particular the cheque copies of the contribution(s).

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 Christien Levien 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.