Item - 2024.EA11.2

The Compliance Audit Committee: 
  
Has decided not to commence legal proceedings against Chris Galifi and Cristina Galifi. 
 
1. The Compliance Audit Committee met on September 25, 2024, to hear Item EA11.2 – Chris Galifi and Cristina Galifi - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996. 
  
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. The report dated September 10, 2024, from the City Clerk identified Chris Galifi and Cristina Galifi as a contributor that appeared to have exceeded the $2,500 contribution limit to the election campaign of Mark Saunders. Specifically, the report (September 10, 2024) from the City Clerk identified two contributions of $2,500, from individuals with similar names - Chris Galifi and Cristina Galifi – and with the same address. Accordingly, it appeared that a contributor had made a donation of $5,000 to the election campaign of Mark Saunders. 
  
5. The auditor, BDO Canada LLP, in their report, attached as Attachment 1 to the report (September 10, 2024) from the City Clerk, set out the audit process and the findings with respect to Chris Galifi and Cristina Galifi. 
  
6. The contributor, Chris Galifi and Cristina Galifi provided written evidence that the contributions were from two different individuals. Their lawyer, Jeffrey Kroeker, appeared online. There was additional written information submitted which corroborated the Contributors’ submission. Their lawyer provided a submission that included the contributors’ driver's licences that verified that the contributions were made by two distinct individuals who reside together as husband and wife. 
  
7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Chris Galifi and Cristina Galifi for the contravention of Section 88.9 of the Municipal Elections Act, 1996. 
  
8. There was no contribution over the contribution limit and therefore no findings of a violation under the Municipal Elections Act, 1996. The contribution attributed to “Chris Galifi” was made by Christopher Galifi also known as Chris Galifi (husband) and the contribution attributed to “Cristina Galifi” was made by Cristina Galifi (wife). 

The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution.

This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified Chris Galifi and Cristina Galifi as having a similar name at the same address. If they are the same contributor, they appear to have exceeded the contribution limits in the Municipal Elections Act, 1996.

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. The Committee must also provide brief written reasons for its decision.