Opposition parties want tighter conflict-of-interest rules in Ontario
Opposition parties to push for tighter conflict-of-interest rules in wake of report on Liberal fundraiser with Hydro One bankers
TheStar.com
Aug. 10, 2016
By Rob Ferguson
Opposition parties say they will push the government for tighter conflict-of-interest rules given a watchdog’s concerns about a $7,500-a-ticket Liberal fundraiser with two top cabinet ministers in the Hydro One sale.
The event last Dec. 7 at the Four Seasons in Toronto came a month after the first Hydro One shares were sold to investors and involved bankers whose companies earned millions in fees for underwriting the transmission utility’s $1.6-billion initial public offering.
“It rubs you the wrong way,” New Democrat deputy leader Jagmeet Singh said Wednesday following an 18-page report from Ontario Integrity Commissioner J. David Wake.
“The Liberal party benefits and it’s directly connected to a government decision,” charged Singh, who filed a complaint over the fundraiser under the Members’ Integrity Act.
“It smells so bad.”
Wake said he could not find a violation regarding the event attended by Finance Minister Charles Sousa and then-energy minister Bob Chiarelli because the law applies only to actual — not apparent — conflicts of interest.
The commissioner said “a reasonably well-informed person could have reasonable concerns” about the event. He urged legislators to review the legislation “with a view to clarifying whether it should apply to the appearance of conflicts of interest.”
“The attendees of the event donated money to the Liberal party and as such no doubt gave the ministers a ‘political benefit,’ ” Wake continued. “However, I am not able to conclude that the attendees . . . gave a gift or personal benefit.”
According to the report, Sousa said he greeted the 24 guests and mingled, as did Chiarelli, who told the commissioner he had only “social” interactions about the success of the stock offering.
Premier Kathleen Wynne’s office said it is “pleased” the commissioner found no contraventions of the law and will review his report.
“Our government is in the midst of election financing reforms through an open, transparent and credible process that includes engaging opposition parties, experts and the general public every step of the way,” said spokeswoman Jennifer Beaudry.
“As the premier has said, political donations do not influence policy decisions.”
Wynne promised to pass fundraising reforms this fall in the wake of an investigation by the Star’s Martin Regg Cohn that revealed cabinet ministers have secret fundraising targets of up to $500,000 a year.
The premier has said she and her cabinet ministers are no longer attending fundraisers like the one held with Sousa and Chiarelli, who is now infrastructure minister.
But opposition parties said the Bill 201 election financing reforms proposed by the government do not ban such cash-for-access fundraisers, although Wynne said last week she is open to discussion on that. The bill would ban corporate and union donations and lower contribution limits.
Progressive Conservative MPP Randy Hillier, who serves on the legislative committee that has conducted Bill 201 hearings around the province this summer, agreed that the Members’ Integrity Act should be strengthened.
“Our laws have been constructed purposely to shield and protect the political echelon from being seen to be doing something unlawful or inappropriate,” Hillier told the Star.
He also wants the integrity act broadened so that any citizen — not just MPPs — can file a complaint with Wake’s office.
“Where there is merit, he would be obliged to investigate,” Hillier said. “That would be in keeping with other provinces.”
The legislative committee returns to Queen’s Park Thursday and will hear testimony from Wake, auditor general Bonnie Lysyk and Elections Ontario chief executive officer Greg Essensa.
