Item - 2024.EA12.3

The Compliance Audit Committee: 
  
Has decided not to commence legal proceedings against Robert Sabato and Roberto Sabato. 
 
1. The Compliance Audit Committee (the “Committee”) met on October 7, 2024, to hear Item EA12.3 – Robert Sabato and Roberto Sabato – 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(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000. 
  
4. The report dated September 10, 2024, from the City Clerk identified Robert Sabato and Roberto Sabato (the “Contributor(s)”) as a contributor who has/have appeared to have exceeded the $5,000 contribution limit to the election campaigns of Ana Bailao, Anthony Perruzza, and Mark Saunders (the “Candidate(s)”). Specifically, the report (September 10, 2024) from the City Clerk identified two contributions of $2,500 and one contribution of $1,200, from individuals with similar names – Robert Sabato and Roberto Sabato – and with the same address. Accordingly, it appeared that a contributor had made a donation of $6,200 to the election campaign of the Candidates. 
  
5. The auditor, BDO Canada LLP, explained in their report, attached as Attachment 1 to the report (September 10, 2024) from the City Clerk, setting out the audit process and the findings with respect to Robert Sabato and Roberto Sabato. 
  
6. Neither the Contributor(s) nor the Candidate(s) attended, but the Contributor, Roberto Sabato, provided written communication that supported an inference that Roberto Sabato and Robert Sabato are two distinct individuals. 
  
7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor(s) Robert Sabato and Roberto Sabato 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 “Roberto Sabato” was made by Roberto Sabato (father) and the contribution attributed to “Robert Sabato” was made by Robert Sabato (son). 

Peter Hearn, BDO Canada LLP gave a presentation on Robert Sabato and Roberto Sabato - 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.

The Compliance Audit Committee recessed its public session to meet in closed session to deliberate in private on Item EA12.3 - Robert Sabato and Roberto Sabato - 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 and to receive advice that is subject to solicitor-client privilege.

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 Robert Sabato and Roberto Sabato 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.