Elections BC is investigating allegations that the provincial Liberal party accepted illegal political donations through lobbyists.
According to those allegations, which were revealed by reporter Kathy Tomlinson of The Globe and Mail, Premier Christy Clark's party has been the recipient of indirect contributions – a violation of one of the few restrictions the province maintains on political donations.
Lobbyists will donate to the governing Liberals under their own name, Tomlinson found, only to be reimbursed later by the companies they represent. When the donations are reported publicly, the companies’ names are nowhere to be found.
Elections BC has since confirmed it is reviewing the information uncovered in The Globe’s reporting.
“We have not seen this kind of allegation to this point in BC,” Chief Electoral Officer Keith Archer told CTV News.
“I was surprised that it was so extensive, and that the donors didn’t seem to understand that this is a serious violation of the Election Act.”
Depending on what the investigation turns up, the case could eventually be forwarded to the Criminal Justice Branch, Archer added. The penalties for violating election financing rules are a fine of up to $10,000, imprisonment for up to one year, or both.
With the provincial election just months away, the BC Green Party called on the RCMP to begin investigating the allegations on its own immediately, so voters will be informed before they cast their ballots.
"The report raises serious questions about influence peddling and corruption of our democratic process," Green leader Andrew Weaver said in a news release.
Weaver noted the Liberals raised more than $12 million last year, more than any other governing provincial party, and called for an end to political and union donations – a practice the BC NDP, which accepts both kinds of contributions, has pledged to ban if elected in May.
Clark has not responded to the allegations levelled in The Globe's reporting, but her party issued a statement Monday suggesting the issue could be blamed on misinformed donors.
"It appears this was due to donors' misunderstanding of the rules around political contributions in BC, and we are taking immediate steps to ensure all donors understand their legal obligations under the Elections Act," wrote Emile Scheffel, director of communications for the Liberals.
"Whenever we become aware of behaviour that contravenes the Election Act, we work with Elections BC to address it. Remedies can include refunding or forfeiting donations.”
BC’s Chief Electoral Officer said there are potential “issues both with the donor and with the recipient,” however.
According to Tomlinson's investigation, two of the lobbyists potentially circumventing Election Act rules represent Woodfibre LNG, which has been granted tax breaks from the province.
The allegations of illegality outlined in The Globe's reporting haven't been proven in court.
In recent months, the BC Liberal Party has also come under scrutiny for some of its legal fundraising practices, including so-called "cash-for-access" events where wealthy donors spend upwards of $5,000 a plate to dine in the presence of the premier.
A New York Times story that derisively dubbed the province the "Wild West" of financing rules also sparked criticism of the party.
Democracy groups list BC as having one of the loosest political donation systems in Canada, allowing limitless donations from corporations, unions and even donors from other provinces and countries.
Union and corporate donations are already illegal federally and in Alberta, Manitoba, Ontario, Quebec and Nova Scotia.
With files from CTV Vancouver’s Bhinder Sajan
