TDSB trustee in hot water again, this time over campaign finances
Independent committee seeks ruling on whether trustee David Smith breached Ontario’s Municipal Elections Act.

thestar.com
June 27, 2017
By Louise Brown

A Compliance Audit Committee, established under the Municipal Elections Act, will launch legal action against Scarborough Trustee David Smith for allegedly failing to follow Ontario campaign finance rules while running for re-election in 2014. The Compliance Audit Committee is responsible for determining whether to commence legal proceedings if the auditor concludes that there is an apparent contravention of the Act.

A committee, one that is independent from the Toronto District School Board, voted 2-1 Monday to charge Smith under the Municipal Elections Act - extremely rare for a school trustee - after an outside audit noted Smith failed to obey certain requirements such as using a special election bank account during the campaign (instead of his own personal chequing account) and giving receipts to campaign donors.

Smith set up his campaign bank account after voting day, and deposited his campaign contributions after the fact, the audit found.

The Compliance Audit Committee decided to take legal action even though the external audit firm, Millards Chartered Accountants, said in the end Smith did provide enough of a campaign paper trail - personal cheques, invoices - to suggest his campaign expenses were legitimate, even if they fell short of bookkeeping protocol.

“We’re disappointed in the decision to take legal action,” said Smith’s lawyer Jack Siegel, who accompanied Smith to Monday’s committee meeting. Siegel noted that recent amendments to the Municipal Elections Act make it clear candidates in future should create a special campaign bank account right from the start, but that the law in 2014 was not that specific.

In addressing the committee before its ruling, Smith apologized for having skirted procedure, but explained his brother had died suddenly in March 2014, diverting his attention from the upcoming election until August, when he finally registered as a candidate later than normal. He explained he chose to save time by paying expenses himself.

“I recognize my failure to operate according to proper procedures and I regret my mistake and the public expense that has resulted,” said Smith.

The complaint against Smith, an accountant, came from former Scarborough Trustee Scott Harrison, who lost to Smith in 2014 by just 139 votes.

“He didn’t overspend, but there were holes in his records you could drive a transport truck through,” said Harrison. “Even though you may have a family tragedy, there are rights and obligations to running for office.”

The two Compliance Audit Committee members who favoured charging Smith were Sudabeh Mashkuri and Teja Rachamalla, both lawyers and arbitrators. Committee chair John Hollins, Ontario’s former chief electoral officer, opposed taking legal action. Typically, those found guilty of such offences face a financial penalty.

This is not the first political hot water Smith has found himself in. He was removed from office in April 2015 after missing the deadline to file his 2014 campaign expenses by almost two hours. He later told a judge he was delayed while driving back from Northern Ontario due to an injured foot, and the judge reinstated him.

Too, Harrison and other constituents had complained in October 2014 that Smith, who represents Scarborough-Centre, had a poor TDSB attendance record.

And, in a scathing report on the Toronto board by provincially appointed troubleshooter Margaret Wilson, Smith’s annual fun fair was singled out in a section on trustee interference. While he was not named, Wilson noted that “in one ward, school administrators and teachers are expected to support and participate in the local trustee’s fun fair, which is largely perceived as a campaign event.”

Smith held his sixth annual fun fair Saturday at a Scarborough school. New Education Minister Mitzie Hunter attended, as local MPP. Smith shrugged off Wilson’s concerns Monday, noting he pays for the caretaking and food himself as a way to provide low-income children some fun.