Item - 2023.EA3.3

The Compliance Audit Committee granted the application for a compliance audit of the Election Campaign Finances of Lorenzo Berardinetti.

1. The Compliance Audit Committee met on July 19, 2023 to hear Item EA3.3 the Compliance Audit Application of Kevin Wiener for a compliance audit of the Election Campaign Finances of the Respondent, Lorenzo Berardinetti.

2. The Applicant appeared before the Committee and provided submissions related to the Application.

3. The Applicant provided information to the Committee to support the Applicant’s belief that the Respondent contravened provisions of the Municipal Elections Act, 1996 relating to election campaign finances.

4. The Applicant raised concerns relating to the Respondent’s compliance with the Act. In particular these related to:

a. That the Respondent did not file a financial statement by March 31, 2023 as required by the Municipal Elections Act; and

b. That the Respondent incurred expenses including the expense of a campaign office and without a financial statement, there is no public record to determine the campaign finance details.

5. The Applicant also highlighted that the Respondent is a former member of Council and raised several questions about the Respondent’s campaign finances that were unanswered.

6. The Committee then provided the Respondent with the opportunity to respond. The Respondent was not present at the hearing and did not provide submissions to the Committee.

7. The failure of the Respondent to provide information to the Committee and the nature of the alleged breaches raises concerns. The participation of the Respondent in this proceeding would have been very helpful to the process and would have assisted in ensuring transparency and openness in understanding the Respondent's campaign finances. Indeed, the Respondent could have provided answers to questions raised by the Applicant and which remain unanswered.

8. In this instance, the Respondent has already defaulted and the penalties in 88.23(2) have already been imposed. This includes a prohibition on the Respondent being eligible to be a candidate for municipal office until after the 2026 municipal election. These penalties are significant but it is in the public interest to seek greater public transparency in the Respondent’s campaign finances and this information would not be made available without an audit.

9. The Committee concluded that there are reasonable grounds that:

a. the Respondent did not file a financial statement as required and this is a breach of the Municipal Elections Act, 1996.

10. As a result there are questions that cannot be answered without an audit, including in respect of the contributions received and expenses incurred by this campaign.

11. For the reasons stated above, and in the spirit of accountability, transparency, and upholding the public interest, the Committee shall grant the Application and appoint an auditor to conduct a compliance audit of the election campaign finances of Lorenzo Berardinetti, in accordance with s. 88.33(7) and (10) of the Act.

The Compliance Audit Committee recessed its public session to meet in closed session to deliberate in private on Item EA3.3 - Compliance Audit Application by Kevin Wiener for the Election Campaign Finances of Lorenzo Berardinetti and to receive advice that is subject to solicitor-client privilege.

Application for a Compliance Audit received June 29, 2023, from applicant Kevin Wiener for candidate Lorenzo Berardinetti for City Councillor Ward 20 Scarborough Southwest.