Hamilton mayor accused of multiple election violations

The mayor of Hamilton, Larry DiIanni, is being accused of dozens of violations of the Municipal Elections Act. A business-woman and former Dundas town councillor has formally asked for a compliance audit of DiIanni's election campaign. She has also requested an audit  of eight other candidates in last fall's municipal election, including three sitting council members.

In a 14-page letter to the City Clerk, bookstore owner Joanna Chapman detailed irregularities in the campaign contributions of more than 60 corporations and individuals. Chapman found eight separate instances in which DiIanni reported receiving more than the legally allowable maximum funding from a single contributor. In each case, DiIanni's election documents list two or more donations with identical names and address that total more than $750.

In addition, Chapman's investigations of corporate donors to the mayor's campaign turned up a dozen instances in which apparently associated companies made total donations over the limit. The Municipal Election Act says that corporations associated with each other as defined by federal income tax laws  "shall be deemed to be a single corporation" for the purposes of the Act.

One example identified by Chapman was $750 donations from each of St. Laurence Cement, Dufferin Construction and TCG Asphalt & Construction. St. Laurence owns the other two companies.

Another cited three companies with "A DeSantis" in their name that Chapman says have "identical officers". They also share the same address and donated a total of $1200 to DiIanni's campaign.

Chapman's list includes some curiosities such as three numbered companies that share an address with both Losani Homes and Losani Homes (1998) Ltd. Together the five companies donated $3500 to DiIanni's campaign. Chapman believes they are associated and notes that "the principal corporate directors have the same first names but varied spellings of the family name on their corporate documents - Losani, Liosani and Osani - however, they utilize the same residential address and appear to be all the same family."

Only individuals, unions or corporations are eligible to make campaign contributions, but Chapman says several companies that gave money to DiIanni "cannot be traced as corporate names".  She also questions the propriety of DiIanni and several other candidates taking donations from the Hamilton International Airport. She asks: "How can a city-owned airport donate to a candidate in the municipal election campaign?"

Chapman is alleging obvious or potential violations by councillors Tom Jackson, Bill Kelly and Terry Whitehead, as well as by defeated candidates Anne Bain, John Best, Marvin Caplan, Peter Martin and George Morasse. She has asked that each of these campaigns also be subjected to compliance audits.

Kelly's contributions are also the subject of a second audit request filed yesterday by Alice H. Smith who cited similar violations to those noted by Chapman.

The two letters were surprise additions to the agenda of tonight's meeting of Hamilton City Council. They were received without discussion and referred to the City Clerk for a report due on July 14. Council must decide within 30 days whether or not to order the requested audits. If they reject the requests, Chapman and Smith would be free to take their concerns to a judge.

A candidate who violates the Muncipal Elections Act can be fined up to $5000 for each offence. The penalty for corporations is up to $25,000 per offence.

CATCH (Citizens at City Hall) monitors Hamilton council. Detailed reports of City Hall meetings can be reviewed at www.environmenthamilton.org/CATCH . Send an email to CATCH@cogeco.ca to receive all CATCH updates.