The article is well-titled: a “REPRIMAND” for “ILLEGAL ACTIVITY”.
By Sarah O’Donnell, Edmonton Journal
EDMONTON – Elections Alberta censured a top Katz Group executive Tuesday, saying his $25,000 donation to the Progressive Conservative Party in 2012 was illegal.
But information from the elections agency suggested it could be the only problem flagged with $430,000 of controversial donations to the PC party connected to Edmonton Oilers owner Daryl Katz.
Hefty donations from Katz, several family members and top company executives have been under scrutiny since last fall when opposition leaders accused the PCs of breaching donation limits after reports that the money arrived in a single cheque.
Both the PCs and other opposition parties asked Elections Alberta to investigate.
In her Tuesday decision specifically about the donation by Katz Group chief financial officer Paul Marcaccio, acting chief electoral officer Lori McKee-Jeske confirmed the PC Party received a $430,000 bank draft from Katz Group Properties Inc. on April 16, 2012.
Marcaccio’s $25,000 piece of that contribution, which he repaid to the Katz Group with a personal cheque, should never have been made, she said, since his main home is Toronto. People who ordinarily live outside Alberta are prohibited from making political donations under provincial law.
The PC Party returned the $25,000 after learning from Elections Alberta the money came from a “non-ordinary” resident.
And because Marcaccio made “an error, believing in good faith,” co-operated with the investigation and acknowledged his mistake, Elections Alberta ruled a letter of reprimand was a suitable penalty, as opposed to a fine or prosecution.
Publishing the decision will have a “significant impact on Mr. Marcaccio personally, and given the likely profile of this case, will follow him for the balance of his career,” McKee-Jeske wrote in her decision.
“The public interest will be served by a fulsome public disclosure of the circumstances of the matter and Mr. Marcaccio’s commitment to further compliance.”
A spokesman for the Katz Group declined to comment Tuesday night.
According to Elections Alberta, the decision marks the first time an investigation into a contribution from someone outside the province has proven to be true. McKee-Jeske warned the case should be a caution to those who may work in Alberta, but live elsewhere.
“If there are future cases, the chief electoral officer may well consider imposing more severe sanctions or referring the matters to prosecution,” she wrote.
Premier Alison Redford did not comment on the decision Tuesday.
But PC party president Jim McCormick said in a letter to McKee-Jeske that party officials agreed with her findings that the PCs “did not knowingly solicit or accept a contribution” that broke the rules.
“Your letter confirms that it was impossible for the PCAA to have known that these donations were from a non-ordinary resident,” he wrote, noting later that the decision supports the conclusion that “the remaining donations must be separate contributions and therefore compliant with donation limits.”
Elections Alberta officials said they will release information on that larger investigation to people involved on Wednesday. But that information will only be released by the agency if someone involves makes a written request.
Under Alberta’s recently amended election laws, Elections Alberta has to publicly post their finding if laws are broken. If no breach occurs, however, the office does not automatically report the results, spokesman Drew Westwater said.
NDP Leader Brian Mason said he was glad to hear the PCs had returned Marcaccio’s donation.
But he said he felt the letter of reprimand failed to send a tough enough message.
“I think it’s very consistent with the slap-on-the-wrist approach of the chief electoral officers so far,” Mason said. “Not only do we have weak legislation, but it’s weakly enforced and I don’t think that sends the right message to others who might try the same thing.”
sodonnell AT edmontonjournal.com
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