Federal political candidates used millions of dollars in "hidden" donations from untraceable donors to finance their campaigns in last year's general election, a new analysis of election financing shows.
Candidates for the governing Liberal Party received $2.1-million of untraceable money transferred from their riding associations for their campaigns in last November's general election, according to a study by Democracy Watch, a citizens organization that supports tighter rules for election financing and lobbying.
Federal election finance rules allow individual riding associations of political parties to accept unreported donations before the election campaign, then transfer sums to their candidates during the campaign in transactions recorded only as transfers.
That allows politicians and donors to beat the spirit of Canada's election law, which requires disclosure of the names of campaign donors, critics say.
"What the loophole does is it makes the disclosure system optional," said Aaron Freeman, a member of Democracy Watch's board of directors. "In a democratic society, citizens have a right to know who is bankrolling the political process."
Canada's election laws require individual candidates and political parties to report donors to campaigns, and parties are required to list donors who contribute outside of election periods.
However, riding associations are not required to report their contributions, and can freely transfer sums raised to their candidate's campaign, Elections Canada spokeswoman Louise Duhamel said. The riding association is listed as the donor, while the original contributors are not.
Despite calls for changes, the federal Liberal government chose not to tighten up the loophole when a new Elections Act was passed last year. Such donations made up a substantial portion of funding for local races in the 2000 election. For sitting cabinet ministers, the $490,569 in transfers was 15 per cent of all funds raised for local riding races.
And several politicians used such transfers from their riding associations to finance most or all of their campaign spending.
International Co-operation Minister Maria Minna received a $66,000 transfer from her Beaches-East York riding association in Toronto to finance her local race -- $5,000 more than she reported spending on the campaign.
Several other ministers reported sizable transfers that made up most or all of their election funding: $64,880 to Immigration Minister Elinor Caplan's campaign; $60,000 to the bid of Defence Minister Art Eggleton; and $55,000 to the campaign of Rey Pagtakhan, the Secretary of State for Asia Pacific.
Opposition MPs also used the practice: Bloc Québécois Leader Gilles Duceppe accepted a $35,452 transfer, while Canadian Alliance Leader Stockwell Day had a $20,000 transfer. *** ***
CORRECTION
Immigration Minister Elinor Caplan and International Co-operation Minister Maria Minna identified all donors to their 2000 federal election campaigns, including those who gave their riding associations money that was transferred to the candidates. As of Sept. 1, 2000, the identity of donors who contribute more than $200 to riding associations must be revealed to Elections Canada. Incorrect information appeared Monday. (Friday, April 27, Page A2)
Campbell Clark