Scathing rebuke of Ramal's campaign finances in decision letter seeking ‘significant consequences' by the courts

CTV News

3 days ago

Committee writes letter about referring an audit of former mayoral candidate Khalil Ramal to a special prosecutor for potential legal action.
Two days after the Compliance Audit Committee (CAC) referred an audit of former mayoral candidate Khalil Ramal to a special prosecutor for potential legal action, a strongly-worded decision letter details the rationale behind the committee's decision.
An audit of Ramal's campaign finances by William Molson concluded that there were a number of apparent violations of the Municipal Elections Act including not including in his filing the names/addresses of donors who gave over $100, exceeding the candidate contribution limit ($25,000) by $11,916.27 and using an unlicensed accountant to confirm the accuracy of the document submitted to the city clerk.
The decision letter reads, 'this apparent lack of respect for and/or understanding of the record-keeping and reporting requirements of the Act is of great concern to the Committee.'
It goes on to recommend the courts impose a harsh penalty if the Act was violated, 'the public interest warrants significant consequences both to denounce such conduct and to set an example for the Candidate and others in future municipal election cycles.'
Penalties for violating the Municipal Elections Act could include:
up to $25,000 fine
ineligibility to vote or run in next election
up to six months in prison
forfeiture of your elected office
additional fine (amount spending limit exceeded)
The letter describes Ramal's use of an unlicensed auditor as 'startling'.
It warns that the burden of confirming the accuracy of Financial Statements filed by thousands of candidates across Ontario should not fall on taxpayers.
The letter emphasizes the onus is on the use of licensed accounting professionals to ensure public trust in municipal campaign finances, 'The audit requirement of the (Municipal Elections) Act is the cornerstone of the financial accountability and transparency framework established by the Act.'
On Wednesday, Ramal challenged the compliance audit's findings during a CAC meeting.
053025 - Ramal audit
Committee writes letter about referring an audit of former mayoral candidate Khalil Ramal to a special prosecutor for potential legal action.
However, Molson told the committee that Ramal's campaign finances submitted to the city clerk suffered from 'massively incomplete information,' and that much of the campaign's revenue and expenses flowed outside of its dedicated bank account.
He told them he was unaware that the individual who audited his campaign's Financial Statement was not licensed at the time.
Ramal said he eventually provided Molson with his donors' names and addresses, and claimed that his personal contribution did not exceed the candidate limit because a $21,000 invoice remains unpaid.
The committee wasn't swayed by his arguments.
In its written decision the committee confirmed, '(We) therefore decided to authorize the commencement of such proceedings by appointing an independent prosecutor.'
Molson's examination of available documents, plus telephone and written exchanges with Ramal confirmed several additional violations raised in an initial complaint:
A list of financial donations over $100 failed to include the mailing address and/or name of contributor
A contribution for $1,495 exceeded the $1,200 limit
No expenses were declared for telephone, internet or website hosting fees
Expenses of $2,034 and $339 for 'steel' should be subject to the spending limit
Other 'revenue not deemed a contribution' lists '3x50' worth $150, which would exceed $25 limit
The committee's written decision acknowledged their belief that Ramal did not deliberately disregard the record-keeping and reporting requirements, 'rather, he lacked the ability and knowledge to understand what was required, and he did not have the support of a campaign manager or financial officer who did.'
The letter is signed by all three members appointed to the Compliance Audit Committee, Andrew Wright (Chair), Dan Ross (Member), and Christene Scrimgeour (Member).
Ramal placed second to Mayor Josh Morgan in the 2022 municipal election receiving almost 23 per cent of the votes cast.