Item - 2024.EA14.1

The Compliance Audit Committee:  
   
Has decided not to commence legal proceedings against Chayanika Dutta.  
  
1. The Compliance Audit Committee (the “Committee”) met on December 13, 2024, to hear Item EA14.1 - Chayanika Dutta - A contributor in the 2023 Councillor Ward 20, Scarborough Southwest By-lection 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. Further, 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. 
   
3. Section 88.9(1) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to a candidate in an election is $1,200.  
  
4. The report dated November 20, 2024, from the City Clerk identified Chayanika Dutta as a Contributor who appeared to have exceeded the $1,200 contribution limit to the election campaign of Alamgir Hussain (the “Candidate”). The report (November 20, 2024) from the auditor, BDO Canada LLP, identified Chayanika Dutta to have contributed $1,250.  
   
5. The auditor, BDO Canada LLP, explained in their report, attached as Attachment 1 to the report from the City Clerk, dated November 20, 2024, setting out the audit process and the findings with respect to Chayanika Dutta (the “Contributor”).  
   
6. The Contributor attended virtually and provided an oral submission. The Contributor explained that the alleged overage that caused the contravention of the contribution limit was due to her mistaken belief that she was within the permitted Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996. She expressed her remorse and desire to rectify the situation.  
   
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 Contributor exceeded the contribution limit, however due to its minimal amount, it is not in the public interest to commence a proceeding against the Contributor.   
 
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. In accordance with Section 88.22(1)(r)(i) of the Municipal Elections Act, 1996, it is the candidate’s obligation to ensure that each contributor is informed of the total maximum of $1,200 to any one candidate in an election. In the Committee's view, the responsibility rests with the candidate to fully understand their legal obligations with respect to the receipt of contributions and contribution limits. When a candidate chooses to seek office, they accept that they must understand and comply with the rules including campaign finance rules. A candidate should seek professional or legal advice in order to ensure that they meet their obligations in the Municipal Elections Act, 1996.  

Peter Hearn, BDO Canada LLP gave a presentation on Chayanika Dutta - A contributor in the 2023 Councillor Ward 20, Scarborough Southwest By-Election 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 EA14.1 - Chayanika Dutta - A contributor in the 2023 Councillor Ward 20, Scarborough Southwest By-Election 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 Councillor Ward 20, Scarborough Southwest By-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 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 Councillor Ward 20, Scarborough Southwest By-Election and identified Chayanika Dutta as a contributor who appears 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.