Item - 2024.EA12.8

The Compliance Audit Committee: 
  
Has decided not to commence legal proceedings against Giuseppe Vaccaro and Joe Vaccaro. 
 
1. The Compliance Audit Committee (the “Committee”) met on October 7, 2024, to hear Item EA12.8 – Giuseppe Vaccaro and Joe Vaccaro – 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 Giuseppe Vaccaro and Joe Vaccaro (the “Contributor(s)”) as a contributor that appeared to have exceeded the $5,000 contribution limit to the election campaigns of Brad Bradford, Ana Bailao, and Mark Saunders (the “Candidate(s)”). Specifically, the report (September 10, 2024) from the City Clerk identified one contribution of $500, and two contributions of $2,500, from individuals with similar names – Giuseppe Vaccaro and Joe Vaccaro – and with the same address. Accordingly, it appeared that a contributor had made a donation of $5,500 to the election campaign of the Candidate(s). 
  
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 Giuseppe Vaccaro and Joe Vaccaro. 
  
6. The Contributor(s) did not appear but provided a written submission, which confirmed that Giuseppe Vaccaro and Joe Vaccaro are the same individual and is therefore one contributor (the “Contributor”). The Contributor explained that the alleged overage that caused the contravention of the contribution limit was due to human error. The Contributor acknowledges that this overcontribution is an error and accepts responsibility for failing to comply with the legislation. 
  
7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against the Contributor for the contravention of Section 88.9 of the Municipal Elections Act, 1996. 
 
8. There was a contravention of the contribution limit because the individual made a contribution of $5,500, which exceeded the applicable limit of $5,000 due to human error. The Contributor, from their submission, appears to be remorseful. 
 
9. The Committee is not bound to commence proceedings in the face of a breach or contravention of the Municipal Elections Act, 1996. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629.    
 
10. Consequently, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor. 

Peter Hearn, BDO Canada LLP gave a presentation on Giuseppe Vaccaro and Joe Vaccaro - 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 EA12.8 - Giuseppe Vaccaro and Joe Vaccaro - 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 Giuseppe Vaccaro and Joe Vaccaro 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.