Hashem Ghadaki - 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

  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 Hashem Ghadaki as a Contributor that appeared to have exceeded the $5,000 contribution limit to the election campaign of Ana Bailao, Anthony Perruzza, and Mark Saunders ("the Candidates"). The report (September 10, 2024) from the City Clerk identified Hashem Ghadaki to have contributed $6,250.00.   5. The auditor, BDO Canada LLP, explained their report, attached as Attachment 1 to the report from the City Clerk, dated September 10, 2024, setting out the audit process and the findings with respect to Hashem Ghadaki.   6. Neither the Contributor nor the Candidates attended. No written submissions were provided. The failure of the Contributor to provide information to the Committee and the nature of the alleged breach raises concerns. The participation of the Contributor or Candidates in this proceeding would have been very helpful to the process and would have assisted in ensuring transparency and openness in understanding the circumstances of the apparent contravention. Indeed, the Contributor could have provided answers to questions raised by the Committee, and which remain unanswered. 7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Hashem Ghadaki 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 $6,250.00 which exceeded the applicable limit of $5,000. There is no additional information before the Committee to assist in coming to a decision. However, it appears that the final contribution made to a Candidate which exceeded the contribution limit was made after the date of the election, potentially indicating the Contributor may not have been aware that contributions made in this period count toward contribution limits under the Act. 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.