Saturday, September 29, 2007

On misreporting

The Ottawa Citizen reports on yet another example of the Cons' complete disinterest in following Canada's election laws, as the party was forced to amend its 2006 general election return after its initial books listed zero expenses in a major spending category:
The Conservative party had to amend its national campaign expense return for the 2006 election and re-classify nearly $400,000 in advertising expenditures after Elections Canada formally questioned the original return, Elections Canada records show.

The change required the party's auditor, Deloitte & Touche LLP, to withdraw its original opinion of approval for the Conservative election books and submit a new opinion nearly 11 months after the election.

Following the initial Elections Canada review of the return -- which accounted for $18 million the party spent on the campaign over and above candidate expenses -- the Conservatives moved a sum of $388,284 from a column for radio and TV advertising to a separate column for other forms of advertising.

The initial Conservative return, filed with Elections Canada in May, had designated no spending for other forms of advertising, which includes media such as billboards, newspapers and pamphlets.

A Sept. 21, 2006, letter from Elections Canada to Irving Gerstein, chairman of the Conservative Fund Canada, noted that the party reported an expenditure of $1.4 million on non-broadcast advertising for the 2004 campaign and added "we request that you confirm, in writing, that the information reported for the 39th general election for this category of advertising is correct."

The Conservative party response to the Elections Canada letter was a new expense return filed on Dec. 9. The party did not respond directly to the letter from the electoral agency.
Unlike the Conadscam scheme, the omission on its face wouldn't affect the legality of any of the Cons' expenditures within the campaign. But it would, at best, reflect another example of the Cons' complete disregard for their legal obligations, as once again the party seems to have simply made up implausible "facts" and forced an outside agency to correct the falsehood. And it's worth asking whether there's another even more serious issue at play in light of the Cons' massive drop in reported "other advertising expenses" from 2004 to 2006 following the correction.

In fairness, it may well be that the Cons indeed decided to slash three quarters of their spending on this type of advertising from 2004. But when the party has already been shown to have falsely reported its spending in the area to begin with, there's no reason to have any confidence in their reported numbers.

As a result, and particularly in light of the Cons' consistent pattern of false reporting and coverups when it comes to campaign expenses and other party financing issues, it's worth wondering whether the Cons may have instead moved most of their "other advertising expenses" off the federal party's books in the same manner as they did with broadcast advertising. If so, that would take the Cons even further past the election spending limits, and offer another strong indication of central plans to circumvent Canada's election laws.

We'll see whether anything surfaces as the matter is dealt with in detail. But there's every reason for the opposition parties to make sure the Cons' campaign spending goes under the microscope this fall - and the results may well help ensure that no amount of spending can save the Cons' chances in the next election.

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