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Given judge’s conclusions in Senator Mike Duffy trial ruling, Democracy Watch again calls for Nigel Wright, and PMO and Conservative Party officials who aided him, to be prosecuted for bribing Duffy

Group still planning private prosecution if RCMP and Crown prosecutors continue to fail to prosecute Wright and others

Ethics Commissioner and Senate Ethics Officer must prepare rulings on Democracy Watch’s complaints about Wright and others to be released as soon as appeal period passes

FOR IMMEDIATE RELEASE:
Thursday, April 22, 2016

OTTAWA – Today, given Justice Charles Vaillancourt’s conclusions that Nigel Wright and others in Prime Minister Harper’s office (PMO) actions were “covert,” “driven by deceit,” “shocking” and “unacceptable” in a democracy, Democracy Watch again called on the RCMP and Crown prosecutors to prosecute Nigel Wright, and PMO and Conservative Party officials who aided him, for bribing Senator Mike Duffy.

Democracy Watch also reaffirmed its plan to pursue a private prosecution if RCMP and Crown prosecutors continue to fail to uphold the law and cover up the reasons why Wright and others have not been charged.

Democracy Watch filed an ethics complaint against Wright and other PMO staff with the federal Ethics Commissioner in December 2013, and that month also filed a complaint with the RCMP about PMO staff and Conservatives who assisted Wright, and a complaint with the Senate Ethics Officer against all the senators involved in the scandal.

Democracy Watch called on Ethics Commissioner Mary Dawson and Senate Ethics Officer Lyse Ricard to prepare rulings on those complaints to be released as soon as the appeal period passes (if prosecutors don’t file an appeal).

Justice Vaillancourt ruled that Senator Duffy did not “corruptly” accept the $90,000 payment but was “coerced” in such a way that his “true will was overcome.” However, under the Criminal Code it is an offence to “directly or indirectly, corruptly” even “offer” any money to a member of Parliament “in respect of anything done or omitted or to be done or omitted by that person in their official capacity” (section 119(1)(b)).

Justice Vaillancourt’s ruling quotes past court rulings (at p.258) that have highlighted that making such a payment secretly and manipulatively (which Nigel Wright did) is enough to conclude that the payment was made “corruptly.”

See details further below about why in Democracy Watch’s opinion Nigel Wright and the other PMO and Conservative Party officials should be prosecuted for paying money to Senator Duffy in return for actions by Senator Duffy, and/or also click here and here.

Democracy Watch has for the past two years been leading a national campaign to ensure all wrongdoers in the Nigel Wright-PMO-Mike Duffy scandal are held accountable for their wrongdoing.

Democracy Watch called for criminal prosecutions of both Mike Duffy and Nigel Wright for the $90,000 payment Wright made to Duffy when the payment was first made public two years ago, and launched a national petition that was signed by more than 33,000 Canadians calling for an independent prosecutor to be appointed to review evidence and make prosecution decisions (given the serious, ongoing questions about the independence of the RCMP).

Last summer, reporter Laura Stone (then of Global News) spent time with the public sector corruption investigation unit of the RCMP, and in her story the RCMP officers involved in the investigation essentially said that they decided for very questionable reasons to charge only Senator Duffy with receiving a bribe and no one from the Harper PMO with giving the bribe.

In Democracy Watch’s opinion, the key legal measure for the prosecution is subsection 119(1) of the Criminal Code, which prohibits even offering (as well as giving) “corruptly” any benefit to any public official “in respect of” any action or inaction by the official in their capacity as a public official (even if the official never acts). This subsection also prohibits the public official from even attempting to obtain (as well as obtaining) the benefit. And under section 21 of the Criminal Code, it is a violation to aid or abet anyone in violating any prohibition in the Code, and under section 24 it is a violation to attempt to violate any prohibition in the Code.

There are no past court rulings on subsection 119(1). As Democracy Watch’s December 2013 letter to the RCMP detailed, based on past rulings concerning a similar section in the Code (subsection 426(1)), Democracy Watch’s opinion is that to violate subsection 119(1) there does not have to be a “corrupt bargain” or a trading of favours between the person who offers or gives the benefit and the public official attempting to obtain or receiving the benefit. All that is needed for a violation is for the benefit to be given in a corrupt way (for example, in secret with a commitment to keep it secret), and for the benefit to be “in respect of” actions or inactions by the official.

The evidence in Corporal Horton’s affidavit revealed in November 2013 shows that at least three people other than Nigel Wright were involved in the secret negotiations involving offers of benefits, and payments of money, to Senator Duffy in return for at least three actions by Senator Duffy in his capacity as a senator. And the evidence shows that at least one other person was involved in attempting to obtain, and obtaining, benefits and payments of money for Senator Duffy in return for at least three actions by Senator Duffy in his capacity as a senator.

The secrecy of the negotiations and agreements between Nigel Wright and Senator Duffy; the attempt to change the results of an independent audit of Senator Duffy’s expenses; the resignation or firing of Wright, and; the agreement by many of the people involved to issue public statements that concealed that the payment had been given to Senator Duffy, and their agreement to mislead the public about the facts of the situation, is all evidence that the benefits were offered and given to Senator Duffy “corruptly”.

For all of the above reasons, Democracy Watch is requesting that the RCMP officials and the prosecutors involved explain exactly how they took into account the evidence and legal measures set out above in their decision not to prosecute Nigel Wright (and, by implication, others involved), and Democracy Watch will continue pursuing this matter until all the evidence and legal arguments are given a full public hearing.

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FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Government Ethics Campaign

Group calls on Ontario Liberals to undertake meaningful public consultation before changing political finance system

Key democracy laws usually developed by all parties after public consultation – Ontario Liberals unilateral action similar to the so-called “Fair Election Act” the federal Conservatives’ imposed on other parties in 2014

Proposed donation limit of $1,500 undemocratically high – changes should also be made to municipal system across province

FOR IMMEDIATE RELEASE:
Thursday, April 14, 2016

OTTAWA – Today, Democracy Watch called on the Ontario Liberals to undertake a meaningful public consultation before changing the political finance system. The unilateral decision by the Liberals on changes that will be made goes against their own commitment to consult with Ontarians before making decisions, and also goes against the mandate given by Premier Wynne to Treasury Board minister Deb Matthews to ensure consultation occurs.

“Key democracy laws across Canada are usually developed by all parties after meaningful public consultation and the Ontario Liberals should follow this tradition before changing the political finance system,” said Duff Conacher, Co-founder of Democracy Watch and Visiting Professor and LL.M. candidate at the University of Ottawa. “In 2014 the federal Conservatives failed to consult with anyone before introducing big changes to the election law, and the Ontario Liberals should not follow the Conservatives’ undemocratic process.”

Democracy Watch also called for key changes to ensure the new political finance system will actually be democratic. While the Liberals have made good proposals to ban corporate and union donations, and limit donations and spending by all candidates (including party leadership candidates), the Toronto Star has reported that the Ontario Liberals will also set the limit on individual donations at the undemocratically high level of $1,500.

“The proposed $1,500 donation limit is undemocratic because most Ontarians can’t afford it and so it will allow wealthy interests to still use money as an unethical way of influencing parties and politicians,” said Conacher. “As Quebec’s corruption scandal shows clearly, it will also allow corporations, unions and other organizations continue to donate large amounts by having their executives and their family members all make the maximum donation each year.”

Even if funneling donations is made illegal (as it was in Quebec), the donors will just claim they were not forced by their company or union to make the donation, and no one would be able to prove otherwise.

Few have been charged in Quebec’s corruption scandal even though an Elections Quebec audit found $12.5 million in likely illegally funneled donations from 2006-2011. To stop the corruption, in 2013 Quebec lowered its individual donation limit to $100 annually, and required donations to be verified by Elections Quebec before being transferred to parties and candidates. Ontario should make the same democratic changes.

“To match Quebec’s world-leading democratic system, Ontario must limit individual donations to about $100 annually and use per-vote and matching public funding that ensures parties and candidates have a level of funding based on their level of voter support,” said Conacher. “Similar changes should be made to Ontario’s municipal law, taking into account that there are no parties at the municipal level, so that every municipality in the province has the same democratic rules.”

The key changes Ontario must make to democratize its provincial political finance system are as follows (and similar changes should be made province-wide to the municipal political finance system, taking into account that there are no political parties at the municipal level);

  1. a ban on donations by corporations, unions and other organizations (Quebec enacted such a ban in the late 1970s);
  2. a limit on annual donations by individuals to each party of $100-200 annually (Quebec’s limit is $100) with donations routed through the election watchdog agency (as in Quebec);
  3. a ban on donations from individuals who do not live in the jurisdiction;
  4. a prohibition on loans to political parties, riding associations and candidates, except from a public fund (with loans limited to the average annual amount of donations received during the previous two years);
  5. a limit on spending during campaigns by parties, nomination race and election candidates, third party interest groups, and candidates in party leadership races (Alberta and the Yukon have no limits at all; only the federal government, B.C., Manitoba, New Brunswick, Nova Scotia and Quebec limit third party spending, and; no jurisdictions have limits on party leadership race spending);
  6. disclosure of all donations and gifts of money, property, services and volunteer labour given to any party, riding association, politician, nomination race, election or party leadership candidate, including the identity of the donor’s employer, and board and executive affiliations (and the identity of organizers of any fundraising event);
  7. a base amount of annual public funding for parties based on each vote received during the last election (which Quebec has — no more than $1 per vote, with a portion required to be shared with riding associations);
  8. annual public funding for parties matching the first $100,000-$200,000 raised (as in Quebec);
  9. public funding for candidates matching the first $20,000 raised (as in Quebec), and;
  10. a requirement that election, donation and ethics watchdogs conduct annual random audits to ensure all the rules are being followed by everyone.

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FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Money in Politics Campaign

Group launches petition calling on Prime Minister Trudeau and Revenue Minister Lebouthillier to call public inquiry into CRA’s relationship with big accounting firms – more than 15,000 have signed already

Proposed House Finance Committee hearings a “kangaroo court” – partisan politicians can’t investigate past governments impartially

Ethics rules, enforcement and penalties for former government employees also need to be strengthened to ensure they don’t sell their inside access and knowledge

FOR IMMEDIATE RELEASE:
Thursday, April 14, 2016

OTTAWA – Today, Democracy Watch launched a petition on Change.org calling on Prime Minister Trudeau and Revenue Minister Diane Lebouthillier to call a public inquiry into the Canada Revenue Agency’s relationship with big accounting firms. The petition already has more than 15,000 signatures.

The House of Commons Finance Committee is considering holding hearings on the relationship but a partisan committee dominated by Liberals can’t impartially investigate what happened during a previous Conservative government.

“An independent, impartial public inquiry is needed to find out the whole truth about whether the CRA’s relationship with big accounting firms has allowed their wealthy clients to get away with cheating on their taxes,” said Duff Conacher, Co-founder of Democracy Watch, and Visiting Professor and LL.M. candidate at the University of Ottawa. “The House Finance Committee holding hearings on the situation is not enough to find out the whole truth because committees are kangaroo courts made up of partisan politicians judging other politicians and past governments.”

As the CBC has reported over the past six months, dozens of people have left the CRA or the Department of Justice and gone to work for the big accounting companies. Top CRA officials regularly attend behind-closed-door events with top accounting company officials. As well, Cabinet ministers have also played questionable roles at events, and the Canadian government even works in partnership with the accounting industry association.

Also as the CBC has reported, the CRA also failed to aggressively pursue a case against a tax-evasion scheme involving KPMG and some of it wealthy clients, and the CRA offered a secret amnesty to some of those clients.

Democracy Watch also called on the federal government to change federal laws as soon as possible:

  • to increase the cooling-off period for former federal government employees from one year to up to five years based on their last one year up to five years in their job (on a sliding scale depending on whether they are a junior or senior employee);
  • to require all employees to notify the Public Sector Integrity Commissioner when they leave government so the Commissioner can ensure they don’t take jobs or share information with individuals or entities they watched over when they were in government, and;
  • to establish strong penalties for former government employees who violate key ethics rules (there are no penalties now), and to give the Integrity Commissioner the power to impose the penalties.

“The ethics rules and enforcement for CRA and all former federal government employees are too weak to ensure they don’t secretly sell their inside access and knowledge to companies or others they watched over, and the lack of penalties for violating post-employment rules makes the system a sad joke,” said Conacher. “The cooling-off period for former employees must be increased, and they should be required to tell the Integrity Commissioner what they are doing during their cooling-off period, with the Commissioner empowered to impose strong penalties on anyone who violates the rules.”

The Values and Ethics Code for the Public Sector (which covers the CRA and all government institutions) requires public servants to avoid even the appearance of a conflict of interest, and the Policy on Conflict of Interest and Post-Employment requires government institutions to prevent situations “that could impair either the integrity of the public service or the public’s perception of its integrity.”

However, the Policy (Appendix B) only specifically prohibits senior government employees, for only one year after they leave their job, from working with anyone or any entity that they had significant official dealings with only during the last year of their job, and to disclose what jobs they take during that one year only to their deputy head (who can exempt them from the cooling-off period).

The CRA’s own Code of Integrity and Professional Conduct also requires avoiding even the appearance of a conflict of interest, and says CRA’s employees and former employees can never “communicate any information or share any proprietary knowledge that you obtained while on the job, and that has not been made public by the CRA.”

However, the CRA’s Directive on conflict of interest, gifts and hospitality, and post-employment says all employees only have a one-year cooling-off period after they leave their job that prohibits them from working with anyone or any entity that they had significant official dealings with during the last year of their job (and it can be reduced or waived by their manager), and they are not required to notify anyone about their work after they leave, and there are no penalties for violating any post-employm`ent rule.

Even worse, the most senior government officials at the CRA and all government institutions – people who are appointed by Cabinet like deputy ministers and commissioners and heads of institutions – are only required to comply with the much weaker rules in the Conflict of Interest Act. The Act allows Cabinet ministers, their staff, and Cabinet appointees like deputy ministers, to make decisions they can profit from, and while the Act requires a one- to two-year cooling-off period after they leave their position, they don’t have to notify the Conflict of Interest and Ethics Commissioner about who they are working for during that period. There are also no penalties for violating any of the ethics or post-employment rules in the Act.

“The ethics rules from the top to the bottom of the federal government, and enforcement of the rules and penalties for violations, are all dangerously weak – they need to be strengthened, and until they are unethical relationships between politicians and government officials and lobbyists will continue to undermine our democracy,” said Conacher.

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Government Ethics Campaign

How to reform political finance across Canada democratically


The following op-ed by Democracy Watch co-founder Duff Conacher, was published in the Hill Times on April 11, 2016 and on Rabble.ca on April 14, 2016.


Some recent commentary on reforming political finance across Canada has unfortunately included incomplete proposals that won’t stop big money from corrupting Canadian politics.

The most questionable claim by some commentators is that the federal law is the best model. While the federal government banned corporate and union donations in 2007, its $3,050 annual donation limit for individuals ($1,525 to a party and the same amount to its riding associations) is much more than any average person can afford – given that the average annual income in Canada is only about $40,000.

As a result, wealthy people can still use money as an unethical way to influence federal parties and politicians, especially since they can hedge their bets by giving the $3,050 amount to more than one party. That high donation limit also facilitates businesses, unions and other organizations getting around the ban by funneling donations through their executives – 10 executives giving the maximum adds up to a $30,500 donation.

Some have proposed that requiring donors to identify their employer would stop this funneling. However, donors would claim they were not forced by their organization to give the money, and no one would be able to prove otherwise, or they would funnel donations through their family members further hiding the source of the money.

Quebec learned this the hard way, as few have been charged in its corruption scandal even though an Elections Quebec audit found $12.8 million in likely funneled donations from 2006-2011. To stop the corruption, in 2013 Quebec lowered its individual donation limit to $100 annually, and required donations to be verified by Elections Quebec before being transferred to parties and candidates.

Some party leaders and other politicians, and some commentators, claim political parties wouldn’t have the money they need to operate under the Quebec limit. They conveniently fail to mention other elements of Quebec’s world-leading system.

Quebec also has $1.50 per-vote annual funding for political parties (as do four other provinces, and so did the federal level before the Harper Conservatives eliminated it) and public funding that matches the first $200,000 raised by a political party, and $20,000 raised by an election candidate. These amounts close the gap left by ending undemocratic large donations from wealthy interests.

Some commentators argue against the per-vote subsidy – even though it most closely upholds the key democratic principle of one-person, one-vote – by making the absurd claim that it forces voters to give money to parties they don’t support. Actually, the $1-2 amount comes from the taxes everyone pays and goes only to the party each person supports (and only if they vote).

Matching funds raised is also more democratic than other options as a party or candidate needs the support of many voters in order to access significant funds, and the matching helps equalize the funding available to all.

True, the per-vote subsidy should not be too high – no party should receive more than one-half of its annual funding from it to ensure the parties can’t unjustifiably prosper by baiting voters with false promises to boost their support during an election.

Many commentators also ignore the fact that the current voting system and other subsidies shift a lot of taxpayer money in undemocratic directions. For example, in the 2011 federal election the Conservatives received 24 MPs more than they deserved (they received 39.6 percent of the vote, but 54 percent of the MPs). Each of those MPs received about $440,000 annually in salary and for their offices, so the Conservatives received an undemocratic subsidy of $10.5 million every year until the 2015 election. Now the Liberals are receiving roughly the same amount as an unfair subsidy.

As well, the average individual donation to each federal party is only $100-250 yet people who donate up to $400 receive a 75% tax deduction. Even worse, wealthy people who can afford to donate between $1,275 and the maximum donation allowed of $1,525 receive the huge subsidy of almost half that total ($650) as a tax deduction. These taxpayer-funded subsidies add up to more than $20 million annually for all parties.

Compared to these subsidies, it is much more democratic to have a combination of a base amount from a per-vote subsidy for parties, only individuals allowed to donate only a small amount (verified by the election watchdog agency), and matching public funding. Such a system also ensures only parties that continue to appeal to voters in between elections will prosper financially.

Some parties and candidates will continue to claim they need more money to reach and engage with voters even though there is little evidence to back their claims, especially given the relatively low-cost, broad reach of email and social media.

If anything, the reimbursement of half their election expenses that federal parties and candidates receive for obtaining a very low percentage of the vote should be reduced. Federal parties are given 50% of their election expenses if the party receives 2% or more of the national vote (or 5% or more of the vote in any riding), and election candidates get back 60% of their expenses if they receive 10% or more of their riding vote. These subsidies total about 60% of the total amount spent by all parties and candidates each election (about $30 million alone for an average federal election).

Six out of 10 provinces have similar party and candidate election expense subsidies, while two provinces only subsidize candidates – only B.C. and Alberta and the three territories don’t provide them.

Other key changes needed to stop big money include limiting loans as strictly as donations. Currently, financial institutions (and in some jurisdictions also businesses, unions and individuals) can loan unlimited amounts to parties and candidates.

Spending on advertising by third party interest groups must be limited leading up to election day – only the federal government, B.C., Manitoba, New Brunswick, Nova Scotia and Quebec currently have such limits – and each third party should have to prove that its members (or, in the case of a business, shareholders) approved the spending.

Election and ethics watchdogs must be required to do regular audits, including of politicians’ bank accounts, to ensure everyone follows all the rules. Disclosure of all donations and gifts of money, property, services and volunteer labour given to any party, riding association, politician, nomination race, election or party leadership candidate, including the identity of the donor’s employer, and board and executive affiliations (and the identity of organizers of any fundraising event);

Finally, to ensure fair issue debates in between elections, we should start with requiring disclosure of how much any individual or interest group spends on each issue campaign, and their funding sources. If that reveals a huge disparity in funding, and funding sources, then donations to issue campaigns, or at least paid campaign ads, should also be limited.

These changes won’t stop bribery but they will discourage it by making it more clearly illegal, and by increasing the chances of getting caught. Until all Canadian jurisdictions (federal, provincial, territorial and municipal) make these changes, big money will continue to dominate, and corrupt, our politics.

Will Prime Minister Trudeau enforce his own code rule that prohibits ministers fundraising from stakeholders?

Will federal Ethics Commissioner enforce federal ethics rule that prohibits politicians from accepting gifts that might influence them – and rule that donations at private fundraising events are illegal gifts?

Ethics Commissioner must also investigate and publicly disclose identities of all who have donated at the exclusive events, and must monitor all policy-making processes that affect the donors to ensure no preferential treatment occurs

Federal government must also make same world-leading changes to political donations laws as Quebec made in 2013

FOR IMMEDIATE RELEASE:
Wednesday, April 6, 2016

OTTAWA – Today, Democracy Watch called on Prime Minister Trudeau to enforce the rule in his Open and Accountable Government code for ministers that prohibits ministers from fundraising from department stakeholders. The rules are in Annex B and state:

“Ministers and Parliamentary Secretaries should ensure that the solicitation of political contributions on their behalf does not target:
  –  departmental stakeholders, or
  –  other lobbyists and employees of lobbying firms.”

and

“Ministers and Parliamentary Secretaries must avoid conflict of interest, the appearance of conflict of interest and situations that have the potential to involve conflicts of interest.”

Justice Minister Jody Wilson-Raybould is scheduled to attend a $500-a-ticket private, exclusive fundraising event at a law firm in Toronto on Thursday. This event clearly violates the rules in Prime Minister Trudeau’s code. Will he enforce his own rules?

Democracy Watch also called on federal Ethics Commissioner Mary Dawson to do her job properly, finally, by issuing a ruling prohibiting politicians from taking part in private, exclusive fundraising events because they violate the rules in the Conflict of Interest Act (subsection 11(1)) and the Conflict of Interest Code for Members of the House of Commons (subsection 14(1)) that prohibit federal ministers and MPs from accepting gifts or other benefits “that might reasonably be seen to have been given to influence” them. Section 16 of the Act also states public office holders can’t “personally solicit funds from any person or organization if it would place the public office holder in a conflict of interest.

As well, the federal Ethics Commissioner must investigate how many private, exclusive high-priced events have occurred since July 2007 when the Conflict of Interest Act came into force. There is no limitation period on violations of the Act, and so the Commissioner should investigate and obtain and release the list of donors to all the events that have happened, and also investigate and monitor all policy-making processes that affect the donors to ensure no preferential treatment occurs (preferential treatment is illegal under section 7 of the Conflict of Interest Act).

“Big donations made at private fundraising events where the politician is essentially selling access to themselves are a clear violation of federal ethics rules that prohibit ministers and MPs from accepting gifts or benefits that might influence them,” said Duff Conacher, Co-founder of Democracy Watch and Visiting Professor and LL.M. candidate at the University of Ottawa. “If Ethics Commissioner Dawson doesn’t issue a ruling that these unethical fundraising events are illegal, and investigate all such events in recent years, she will not only be negligently ignoring the law she will also be approving corrupting relationships between donors and politicians.”

Democracy Watch is not claiming that all fundraising events are illegal — just high-priced, private, exclusive events where politicians sell access to themselves in return for a donation, as the Globe and Mail and the Toronto Star have recently revealed are happening frequently in Ontario and B.C. (and they happen across the country at all levels of government). Low-priced, large, public events at which no one gets special access to the politician are clearly legal under the conflict-of-interest rules because the donation is not made to gain access to the politician.

While the donations for a high-priced, private, exclusive event go to a party or riding association, access to the politician is part of the ticket price for these exclusive events (which connects the donation to their position as a politician); the politician takes part in directing the spending of the money (as the party leader or local politician for the riding association), and; at least some of the donated money is spent on the politician’s re-election campaign. As a result, the politician is receiving part of a donation made because the politician attended an event – and therefore the politician is receiving an illegal gift.

“Any politician who claims that the donations are funneled to a party or riding association before they are used for the politician’s election campaign, and therefore selling access to themselves is fine, is hiding behind an unethical façade,” said Conacher. “If Ethics Commissioner Dawson has integrity she will end this unethical charade by issuing a ruling that exclusive, high-priced fundraising events violate the federal ethics rule that prohibits politicians from accepting gifts that could influence them.”

Democracy Watch also called on federal parties to make the same world-leading changes to the federal political donation system as Quebec made in 2013, along with other key changes.

While the federal government banned corporate and union donations, it still allows undemocratically high donations that only wealthy people can afford ($1,525 annually to each party, and another $1,525 combined total to each party’s riding associations). As Quebec’s corruption scandal showed, these high donation limits facilitate corporations and unions funneling donations through their executives and/or employees. Few have been charged in its corruption scandal even though an Elections Quebec audit found $12.8 million in likely funneled donations from 2006-2011.

“Any political party that refuses to support these changes is essentially admitting they are up for sale and that they approve of the corrupt best-government-money-can-buy approach to politics,” said Conacher.

The key changes that to democratize the federal political finance systems are as follows:

  1. a limit on annual donations by individuals to each party of $100-200 annually (Quebec’s limit is $100) with donations routed through the election watchdog agency (as in Quebec);
  2. a prohibition on loans to political parties, riding associations and candidates, except from a public fund (with loans limited to the average annual amount of donations received during the previous two years);
  3. a limit on spending by nomination race and party leadership candidates;
  4. if an election is held on the fixed election date, a limit on paid issue and campaign advertising spending by individuals and third party interest groups during the 4-month period before election day;
  5. disclosure of amounts spent by individuals and third party interest groups on issue campaigns in between elections, and disclosure of the source of their funding;
  6. disclosure of all donations and gifts of money, property, services and volunteer labour given to any party, riding association, politician, nomination race, election or party leadership candidate, including the identity of the donor’s employer, and board and executive affiliations (and the identity of organizers of any fundraising event);
  7. a base amount of annual public funding for parties based on each vote received during the last election (no more than $1 per vote, with a portion required to be shared with riding associations);
  8. annual public funding for parties matching the first $100,000-$200,000 raised (as in Quebec);
  9. public funding for candidates matching the first $20,000 raised (as in Quebec), and;
  10. a requirement that election, donation and ethics watchdogs conduct and release the results of annual random audits to ensure everyone is following all the rules.

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Money in Politics Campaign
Democracy Watch’s Government Ethics Campaign

Group calls on Ontario and B.C. and all other ethics commissioners to stop unethical fundraising events by premiers and Cabinet ministers by issuing ruling that the events are illegal

Conflict-of-interest laws across country prohibit politicians from accepting gifts connected with their position — donations at private fundraising events are illegal gifts

Ethics commissioners must also investigate and publicly disclose identities of all who have donated at the exclusive events, and must monitor all policy-making processes that affect the donors to ensure no preferential treatment occurs

All governments must also make same world-leading changes to political donations laws as Quebec made in 2013

FOR IMMEDIATE RELEASE:
Thursday, March 31, 2016

OTTAWA – Today, Democracy Watch called on the Ontario and B.C. ethics commissioners, and ethics commissioners across the country, to do their jobs properly by issuing rulings prohibiting politicians from taking part in private fundraising events because they violate the rules in conflict-of-interest laws across Canada that prohibit politicians from accepting gifts connected with their positions. The request has been sent to every ethics commissioner in Canada (federal, provincial and territorial).

“Big donations made at private fundraising events where the politician is essentially selling access to themselves are a clear violation of conflict-of-interest laws that prohibit politicians across Canada from accepting gifts connected with their positions,” said Duff Conacher, Co-founder of Democracy Watch and Visiting Professor and LL.M. candidate at the University of Ottawa. “If ethics commissioners across Canada don’t issue rulings that these unethical fundraising events are illegal, they will not only be negligently ignoring the law they will also be approving corrupting relationships between donors and politicians.”

Democracy Watch also called on all ethics commissioners to investigate whether such events have occurred, and if they have to obtain and release the list of donors to the events, and to monitor all policy-making processes that affect the donors to ensure no preferential treatment occurs.

Democracy Watch is not claiming that all fundraising events are illegal — just high-priced, exclusive events where politicians sell access to themselves in return for a donation, as the Globe and Mail and the Toronto Star have recently revealed are happening frequently in Ontario and B.C. (and they happen across the country at all levels of government). Low-priced, large, public events at which no one gets special access to the politician are clearly legal under the conflict-of-interest laws because the donation is not made to gain access to the politician.

The federal, provincial and territorial conflict-of-interest laws all have the same provision that says politicians cannot accept any gift or benefit “directly or indirectly” connected to their position or “that might reasonably be seen to be given to influence” them (for example, see Ontario’s rule here and B.C.’s rule here). While the donations go to a party or riding association, access to the politician is part of the ticket price for these exclusive events (which connects the donation to their position as a politician); the politician takes part in directing the spending of the money (as the party leader or local politician for the riding association), and; at least some of the donated money is spent on the politician’s re-election campaign. As a result, the politician is receiving part of a donation made because the politician attended an event – and therefore the politician is receiving an illegal gift.

“Any politician who claims that the donations are funnelled to a party or riding association before they are used for the politician’s election campaign, and therefore selling access to themselves is fine, is hiding behind a corrupt façade,” said Conacher. “Any ethics commissioner with integrity will end this unethical charade by issuing a ruling that exclusive, high-priced fundraising events violate the rule that prohibits receiving gifts that is in every conflict of interest law across Canada.”

Democracy Watch also called on governments across the country to make the same world-leading changes to their political donation systems (federal, provincial, territorial, and municipal in each province and territory) as Quebec made in 2013, along with other key changes.

Political finance systems across Canada, other than Quebec’s provincial system, are all undemocratic in various ways. B.C., Newfoundland and Labrador, Prince Edward Island, and the Yukon are the worst as they allow unlimited donations from corporations, unions and other organizations, and individuals, even if they are not located in or don’t live in the jurisdiction. Saskatchewan is almost as bad, with the only difference being that individual donors have to be a Canadian citizen.

Ontario, New Brunswick, Nunavut and the Northwest Territories are also almost as bad because they allow undemocratically high donations from corporations, unions and organizations (and New Brunswick allows those donations to come from outside the province).

And while the federal government, Alberta, Manitoba and Nova Scotia have banned corporate and union donations, they still allow undemocratically high donations that only wealthy people can afford. As Quebec’s corruption scandal showed, these high donation limits facilitate corporations and unions funneling donations through their executives and/or employees.

“Any political party that refuses to make these changes is essentially admitting they are up for sale and that they approve of the corrupt best-government-money-can-buy approach to politics,” said Conacher.

The key changes that must be made across Canada to democratize political finance systems are as follows:

  1. a ban on donations by corporations, unions and other organizations (Quebec enacted such a ban in the late 1970s);
  2. a limit on annual donations by individuals to each party of $100-200 annually (Quebec’s limit is $100);
  3. a ban on donations from individuals who do not live in the jurisdiction;
  4. a prohibition on loans to political parties, riding associations and candidates, except from a public fund (with loans limited to the average annual amount of donations received during the previous two years)
  5. a limit on spending during campaigns by parties, nomination race and election candidates, third party interest groups, and candidates in party leadership races (Alberta and the Yukon have no limits at all; only the federal government, B.C., Manitoba, New Brunswick, Nova Scotia and Quebec limit third party spending, and; no jurisdictions have limits on party leadership race spending);
  6. disclosure of all donations and gifts of money, property, services and volunteer labour given to any politician, nomination race, election or party leadership candidate, including the identity of the donor’s employer, and board and executive affiliations;
  7. a base amount of annual public funding for parties based on each vote received during the last election (which Quebec has — no more than $1 per vote, with a portion required to be shared with riding associations);
  8. annual public funding for parties matching the first $100,000-$200,000 raised (which Quebec has);
  9. public funding for candidates matching the first $20,000 raised (which Quebec has), and;
  10. a requirement that election, donation and ethics watchdogs conduct annual random audits to ensure all the rules are being followed by everyone.

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FOR MORE INFORMATION, CONTACT:

Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Money in Politics Campaign
Democracy Watch’s Government Ethics Campaign

Liberals’ new Senate appointment process has some good merit criteria but advisory board lacks independence and is partisan as only Liberals chose board members

To ensure advisory board is not a partisan facade, most party leaders must approve most board members, and PM must disclose whether senators he chooses come from board nominees

Senators appointed under new process will be just as partisan as past senators because board nominees secret, and Liberal PM allowed to ignore board and choose whomever he wants

Senators will still be appointed which is fundamentally undemocratic – and reforms won’t have full effect for decades – so abolition still the best long-term solution and it will happen someday

FOR IMMEDIATE RELEASE: Tuesday, January 19, 2016

OTTAWA – Today, in response to the announcement of the members of the Liberals’ new Senate appointment advisory board, Democracy Watch called for changes to make the board actually independent and non-partisan.  And while some parts of the merit-based criteria for being nominated by the board are good, they still contain the discriminatory constitutional requirements that senators be at least 30 years old, and own property worth at least $4,000 and other assets worth at least $4,000.

Given the problems with the Liberals’ proposed reforms, and any other possible reforms, and given that senators will still be appointed which is fundamentally undemocratic, Democracy Watch’s position is still that abolition of the Senate is the best solution, and that this will become more and more clear over time to more and more Canadians and will eventually happen.

“As it is currently set up, the Liberals’ new Senate appointment advisory board is a partisan façade that will result in partisan Senate appointments.  To make the advisory board actually independent and non-partisan, not just the Liberals but also at least a majority of federal party leaders should approve at least a majority of the board members — and even better would be approval by all party leaders of all board members,” said Duff Conacher, Co-founder of Democracy Watch and Visiting Professor at the University of Ottawa. “Senators appointed under the new process will be just as tainted by partisanship as past senators because the board will provide a secret list of nominees to Prime Minister Trudeau who can then ignore the board and appoint whomever he wants to the Senate. Either the board or the Prime Minister must be required to disclose whether the Prime Minister appoints someone from the list of board nominees.”

The problem with the structure of the Liberals’ Senate appointment advisory board is that it is tainted by partisanship because all the members are chosen by only the federal Liberals, and as a result it lacks independence.  To be independent of the ruling party, and therefore non-partisan, at least a majority of members of the board should be approved by at least a majority of federal party leaders (and even better would be all board members approved by all federal party leaders).

The other big problem with Liberals’ new process is that the board will provide a secret list of nominees to Prime Minister Trudeau, who can then ignore the board’s suggestions and choose whomever he wants.  Either the board or the Prime Minister must be required to disclose whether the Prime Minister appointed someone from the list of board nominees.  This solution will protect the privacy of the board nominees who are not chosen while checking the partisanship of the process.

It will take 10 years before a majority of senators will be selected through the Liberals’ proposed system, and the system doesn’t guarantee that new senators will be any less partisan than current and past senators (some may retire early but 31 senators are required to retire by the end of 2019, and 31 more between 2020 and the end of 2024).  The pace of required retirements slows after 2024 to a few each year on average, and as a result it will take until the end of 2049 before all the current senators will be gone.

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]


Democracy Watch’s Shut Down the Senate campaign page

To referendum or not to referendum is not the only voting question


The following op-ed, by Democracy Watch Co-founder Duff Conacher, was published in the Globe and Mail on January 8, 2016 and in the Hill Times on January 11, 2016 and by TroyMedia.com on February 12, 2016


To referendum or not to referendum – that is not the only question in the ongoing debate about reforming Canada’s voting system. The overall issue is ensuring the review process, including any referendum, meets best-practice democratic standards.

If Canada’s current voting system had been subject to a referendum in 1867, only wealthy white men (about 10% of the total population at the time) would have been allowed to vote, and secret donations and spending would have dominated the campaign.

The first important question is the makeup of the committee of politicians that will lead the public consultation. Normally, the Liberal majority would mean a majority of Liberals on all committees. However, no more than half the committee should be Liberal MPs to ensure they can’t just push through whatever system they want. The Liberals should have no concerns about giving up their majority on the committee given that Liberal House Leader Dominic LeBlanc has said voting system reform should have “broad support in Parliament.”

Some claim the Liberals have made it clear committee hearings will be the only consultation process. I don’t think the Liberals have made this decision, and if they have they should reconsider because hearings alone will not amount to meaningful consultation, in part because people self-select whether they participate.

The committee should also undertake a “deliberative judgment” process as the “national engagement” process the Liberals have promised, as it is the best practice for meaningful public consultation. Either several meetings should be held of a large citizen assembly (as B.C. and Ontario used in the past to review their voting systems) or of small focus groups across the country. I believe that several small groups are better because one large group is, like any crowd, more likely to suffer from a collective bias (like jumping on the bandwagon).

In either case: a randomly selected, demographically representative group of Canadians should be consulted; with public servants or independent, non-partisan organizations coordinating the process; politicians and officials from all political parties prohibited from participating in any way; an integrity auditor to hear complaints about violations of process rules, and; details about the process and results all reported publicly before any policy decision is made.

As the Liberals’ platform promised, the process should cover not only possible vote-counting changes but also “a wide variety of reforms” – including the right to vote none-of-the-above (as voters in Alberta, Manitoba, Ontario and Saskatchewan can do by declining their ballot), and the right to file complaints and have politicians penalized by an independent watchdog for unjustifiably breaking election promises.

As well, when the deliberative judgment process is ending and people are asked what changes they support (if any), best-practice methods should be used to record their choices. These methods don’t offer take it or leave it choices (which can be easily biased) but instead let people indicate the level of their support of various options – and if used properly they can produce a clear picture of whether there is any specific change most people support the most.

That public consultation process, done properly, can produce a roadmap for change (if change is supported by most people) that is as democratically legitimate as a referendum result.

The difficulty with a national referendum in a federation is the rules. What proposal should be on the ballot or should there be multiple proposals – and how much detail should the question(s) include? Should a certain minimum national percentage of voters be required to vote – or in each province or in each region? Should politicians be allowed to campaign, using their public office funding and travel perks, or not or should their parties have to pay for any campaigning they do? These are not easy questions to answer.

If a referendum is held, a strong argument can be made, given that the voting system determines who sits in our federal Parliament, and given that sections 37, 51, 51A and 52 of the Constitution Act, 1867 guarantee a specific percentage of seats in the House from each province, that at least a majority of voters in 7 out of 10 provinces representing 50% of the total population should be required to approve any proposed change.

If a referendum is not held, the same approval requirement should be applied to any other type of vote on any change proposal.

The current federal Referendum Act – enacted in 1992 for the Charlottetown Accord referendum and for the federal government to use for any future referendum on issues with constitutional implications (such as voting system change) – only requires a simple majority at a national level. It also has other undemocratic flaws that need to be corrected if a referendum is going to be held under its rules.

For example, the Act democratically limits spending by individuals and groups (although the spending limit measure is unclear as it has not been properly updated), and it requires them to register as a “referendum committee” if they spend more than $5,000. However, it undemocratically allows for unlimited donations from businesses, unions and other organizations to the committees, and allows the committees to collude with each other.

This would allow businesses and other wealthy interests to set up many committees, and fund them all to spend the maximum allowed. In 2004, the Supreme Court of Canada upheld limits in the Canada Elections Act on interest group advertising spending, and colluding, during elections specifically to prevent wealthy interests from dominating a campaign. Similar limits should be in place for any referendum.

Only by following best-practice democratic processes will federal politicians make the best, most widely supported, changes to our voting system. Canadians deserve such processes, not only for voting system reform but also for all the other real changes promised by the Liberals, and not just because it’s 2016 but also because such processes are the only way the Liberals can fulfill their promises of a government that “better reflects the values and expectations of Canadians” and that “trusts Canadians” and makes “evidence-based” decisions.

Democratic Voting System Campaign

Trudeau’s ethics talk is great, but more needed to ensure everyone walks the talk


The following op-ed, by Democracy Watch Co-founder Duff Conacher, was published in edited form by the Hill Times on November 23, 2015, and by the Waterloo Record on December 12, 2015, and by TroyMedia.com on December 14, 2015.


Prime Minister Trudeau’s mandate letters to ministers (which he thankfully made public for the first time ever) importantly remind them that the PM’s accountability guide says they must be honest, impartial and maintain the highest ethical standards, including avoiding even the appearance of a conflict of interest.

However, the guide is not legally binding and neither the letters nor the guide sets out any penalties for violations or says the Prime Minister will suspend or demote, let alone fire, any minister who violates the rules.

The federal Conflict of Interest Act (which covers ministers, ministerial staff and Cabinet appointees including Deputy Ministers) also contains no penalties for violating its ethics rules.  Even worse, the Act directly contradicts the accountability guide as it is full of loopholes that, among other things: allow ministers and the others to be dishonest; mean the Act doesn’t cover them when they make general policy decisions (which are 99% of the decisions they make).

As a result, the law actually allows them and their family members and friends to have an unethical financial stake in, and profit from, 99% of their decisions.  Combined with weak enforcement by the Ethics Commissioner, the law should really be called “The Almost Impossible to be in, or be penalized for, a Conflict of Interest Act.”

In contrast, the ethics codes for federal government employees (all of whom have less power than ministers and senior government officials) not only contain the same strict rules as the ministers’ accountability guide – without any loopholes – but also say violators can be penalized, including being fired.

Prime Minister Harper’s accountability guide for ministers contained the same strict rules but he kept several ministers in Cabinet who violated the rules or the Act.

Prime Minister Trudeau’s letters to his ministers say “you can count on me to support you every day in your role as Minister.”  This sends a mixed message.  To make it clear he will not support dishonest, unethical actions, he should add his accountability guide’s strict ethics rules to the Conflict of Interest Act as soon as possible, and add strong, clear, mandatory penalties (up to and including being removed from Cabinet).

He should also require Ethics Commissioner Mary Dawson to do regular, unannounced audits of minister’s activities and communications (she already has the power to do such audits but has negligently refused to do them).  This will ensure everyone knows there is a high chance of getting caught and definite legal consequences for violations – consequences the Prime Minister cannot stop the Ethics Commissioner from imposing.

The Prime Minister should also strengthen the federal whistleblower protection law and extend it to cover Cabinet minister’s and MPs’ staff.  Currently, only federal government employees who blow the whistle on wrongdoing in government institutions can be protected from retaliation by the federal Integrity Commissioner (though the law is weak and the Commissioner has a weak enforcement record).

These changes would make the Canadian government’s ethics enforcement system meet international best-practice standards, and finally fulfill the commitments the government made a decade ago under the United Nations Convention Against Corruption.

If Prime Minister Trudeau doesn’t make these changes and/or protects rule violators as Prime Minister Harper did, it will encourage violations and break the trust he is trying to forge with voters.  Much of what is currently legal in federal politics is not viewed by the public as ethical – and as many scandals in the past decade have shown clearly, anyone who tries to excuse unethical actions will lose voter support faster than they can say “All the rules were followed.”

The most difficult ethics challenge most ministers and their staff will face is complying with the few strong rules in the Conflict of Interest Act that prohibit accepting gifts from people trying to influence them, and giving preferential treatment to anyone.  Some of their supporters, especially lobbyists, will both want to wine and dine them and want quick access and special treatment for their cause, government contract bid or grant application.  It will be difficult to say to them, as is required by the Act — first come, first serve in terms of communicating and meeting with me; no I can’t help you any more than I help anyone else, and; thank you but no I can’t accept anything from you.

Ministers are allowed to hire whomever they want as their staff (including, under the Conflict of Interest Act, their extended family members and any relatives of other ministers – which should be clearly prohibited).  They are each given a budget to hire about 15 central office staff, and about five staff in each regional office, and the Prime Minister’s Office hires an additional 50-80 staff people.  However, after these jobs are handed out, often to people who helped them win office, it is illegal for them to give any other preferential treatment to any of their supporters.

The Liberals should also strengthen the Lobbying Act and the very weak enforcement by the Commissioner of Lobbying and the RCMP to ensure no minister or their staff can get away with doing secret deals with any of the many Liberal supporters who will be lobbying them for favours.  The Liberals have been out of power for 10 years, so some of their supporters (especially those that helped with campaigns) will be expecting to be handed a ticket back on the government gravy train right away.

As it is illegal for ministers and staff to help Liberal supporters in any preferential way, and a hot-button issue for many voters, any scandals will destroy the trust the Liberals have finally won back after a decade.

Finally, Prime Minister Trudeau would also be wise to make public similar mandate letters for the Deputy Ministers he appoints.  His mandate letters to ministers say that the role of their Deputy Minister is “to support you in the performance of your responsibilities.”  In fact, their role is to support their minister only if the minister follows honesty, ethics, transparency and waste-prevention rules and laws (and all other rules and laws) and they are required to report any wrongdoing to the proper authorities.  His letters should remind Deputy Ministers that loyalty to the rule of law comes before loyalty to their minister, and that they will also be penalized for violations.

These changes by Prime Minister Trudeau would be good first steps to ensure his government keeps its commitment to “an open, honest government that is accountable to Canadians, lives up to the highest ethical standards, and applies the utmost care and prudence in the handling of public funds.”

Those are big words, and many big changes will be needed to ensure everyone walks Prime Minister Trudeau’s ethics talk.


Democracy Watch’s Government Ethics Campaign

Liberals’ new Senate appointment process has some good merit criteria but advisory board lacks independence and is tainted as Liberals will choose majority of members

To be independent and non-partisan, at least a majority of all party leaders must approve at least a majority of members of appointment advisory board

Senators will still be appointed which is fundamentally undemocratic – and reforms won’t have full effect for decades – so abolition still the best long-term solution and it will happen someday

FOR IMMEDIATE RELEASE: Thursday, December 3, 2015

OTTAWA – Today, in response to the announcement of the Liberals’ new Senate appointment advisory board, Democracy Watch called for changes to make the board actually independent and non-partisan.  And while some parts of the merit-based criteria for being nominated by the board are good, they still contain the discriminatory constitutional requirements that senators be at least 30 years old, and own property worth at least $4,000 and other assets worth at least $4,000.

Given the problems with the Liberals’ proposed reforms, and any other possible reforms, and given that senators will still be appointed which is fundamentally undemocratic, Democracy Watch’s position is still that abolition of the Senate is the best solution, and that this will become more and more clear over time to more and more Canadians and will eventually happen.

It will take 10 years before a majority of senators will be selected through the Liberals’ proposed system and the system doesn’t guarantee that new senators will be any less partisan than current and past senators (some may retire early but 31 senators are required to retire by the end of 2019, and 31 more between 2020 and the end of 2024).  The pace of required retirements slows after 2024 to a few each year on average, and as a result it will take until the end of 2049 before all the current senators will be gone.

The problem with the structure of the Liberals’ proposed Senate appointment board is that it is tainted by partisanship because all five members will be selected by only the federal Liberals, and as a result it will lack independence.

“To make the proposed Senate appointment advisory board actually independent and non-partisan not just the Liberals but also at least a majority of federal party leaders must approve a majority of the members of the board — and it would be even better if approval by all party leaders was required for all board members,” said Duff Conacher, Co-founder of Democracy Watch and Visiting Professor at the University of Ottawa. “Just calling the board independent and non-partisan does not make it independent and non-partisan and unless changes are made Liberal-dominated nature of the board will taint it and make the people it nominates to be senators also partisan and very likely Liberal-dominated.”

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Shut Down the Senate campaign page