Read Stephen Taylor's step-by-step comparison of the rules covering trust funds and the apparent method Liberal MP Garth Turner uses to collect funds.
Let's hope Garth Turner hasn't made a mistake. He was just recently appointed by Stephane Dion to be responsible for Liberal Party fundraising.
Update: Well, that was quick. Within a few hours, Garth Turner has changed his website. Instead of asking donors to send cheques to the problematic payee "Garth Turner Campaign, in trust", the cheques are now supposed to be sent to ""Halton Liberal Association -- Garth Turner Campaign".
With that comes some very interesting questions.
Stephen Taylor asks some very pertinent questions:
Will Garth have to return all of the cheques made out to the trust fund?
How will any donor to the trust receive a tax receipt?
What if he has already cashed the cheques and the money has already accrued interest?
Why was a trust fund set up in the first place?
Given the way Garth Turner seems to have implicitly agreed that there was a problem with the way his donation process was organized, and with questions now unanswered about what money went where and where it is going now, I think a full examination by a disinterested third party followed by a public report might be a good idea.
As Stephane Dion's Special Advisor for Riding and Constituency Outreach, a key fundraising role, Garth Turner's own treatment of funds raised needs to be completely above reproach. I'm certain an audit would find nothing that contravenes the laws governing political fundraising.
The sooner the better, since these things have a way of lingering...
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Sphere It!
Under common law, a Trustee may transfer monies from a Trust to beneficiaries of the Trust in accordance with the Objects of the Trust.
If the Objects (purpose) of the Trust are set out to include the holding of monies for the purpose of contributing to a political party candidate's electroal expenses, then there is no reason why such monies in Trust cannot be used for that purpose.
I believe the section of the FAA quoted by Stephen Taylor would refer to to contributions made by a Trust whose Objects did not include the purposes of contributions to political parties or candidates. This restriction was no doubt brought in to place (non-political purpose) Trusts on the same footing and Corporations and Labour Unions.
Posted by: stephen p at October 29, 2007 07:11 AM
This is why I don't usually do these sorts of stories. I'll hop over to Taylor's blog and see where the analysis is going.
Posted by: Steve Janke at October 29, 2007 07:49 AM
I wonder how quick Garth will be posting here....
Hmm, Im not holding my breath. Lets hope we get some resolution on this because with this past weekend, Stephane wont be able to handle someone else stepping down because of fundraising questions....
Posted by: Halton Resident at October 29, 2007 09:01 AM
From what I understand, the Campaign can only exist as an entity during a writ period. The "Garth Turner Campaign" can only exist when Garth is running for something. (Instead of away from! *giggles*)
I could be mistaken though.
Posted by: Lore_Weaver at October 29, 2007 10:21 AM
Garth Turncoat and a few more could be busy checking their own asses.
Posted by: Libby at October 29, 2007 10:29 AM
Garth Turner is a self-proclaimed financial expert, isn't he? Surely he knows what he is doing.
Oh, wait a minute, it appears that he is now asking for donations to be made to Halton Liberal Association - Garth Turner Campaign. No more mention of trust.
Posted by: muttsrus at October 29, 2007 10:42 AM
On October 9th, Dion announced the shadow cabinet shuffle and appointments such as Garth's with this announcement:
• Garth Turner will build on the success of his summer tour, and take on responsibility as the Leader’s Special Advisor for Riding and Constituency Outreach, a key political and fundraising role.
Now if Garth is Dion's fundraising bagman, shouldn't he know the election laws that governs money contributed? Perhaps this reveals Garth's incompetence, and he should be demoted if not asked to resign.
Garth's gaffe must certainly reflect on Dion's poor choices.
Posted by: Observant at October 29, 2007 11:12 AM
Garth has now changed his website "Garth Turner in Trust" to "Halton Liberal Association - Garth Turner Campaign"
All the monies previously collected will have to be returned ASAP. I think this story requires more research and a complaint to Elections Canada is also in order.
Mr. Sqeaky Clean Financial Guy, has egg on his face today!
Posted by: Sam the record man at October 29, 2007 11:36 AM
So it's no longer In Garth we Trust, it's Garth the Gaffe'r?
Posted by: Libby at October 29, 2007 11:53 AM
Savour the irony . Funny , this wasn't posted on GARTHS! blog today . Heh
Posted by: Bill D. Cat at October 29, 2007 02:29 PM
Might want to look at this Steve .
Posted by: Bill D. Cat at October 29, 2007 04:04 PM
Love how politicians and spiders can spin. Next time I rob a bank, I plan to explain to the court that I did not fully comprehend the regulatory procedures relating to deposits and withdrawals.
Posted by: john at October 30, 2007 04:18 AM
It appears that Garth has changed his website once again and cheques are now to be made out to 'Halton Federal Liberal Association'. It's hard to get those pesky legalities right.
Garth has concocted his defense and it basically reads like this: Harper and the Cons are out to get me and I had to look after my own campaign funds because the Conservative riding assoc. got all my money and the Liberal riding assoc. was too inept to be trusted with my money. The campaign to re-elect Garth Turner is more important than the Conservatives or the Liberals. It's all about ME.
Posted by: muttsrus at October 30, 2007 06:38 AM
We thank you for your e-mail of October 29, 2007, regarding an alleged offence against the Canada Elections Act.
The mandate of the Chief Electoral Officer is to administer Canadian electoral legislation and exercise general direction and supervision over the conduct of federal elections and referendums. It is the duty of the Commissioner of Canada Elections to ensure that the Canada Elections Act is complied with and enforced.
Any person who believes that the Canada Elections Act has been violated may contact the Commissioner of Canada Elections at:
Commissioner of Canada Elections
Elections Canada
257 Slater Street
Ottawa, Ontario
K1A 0M6
Fax (local): 613 990-4877
Fax (toll-free): 1-800-663-4908
E-mail: commissionersoffice@elections.ca
Should you need additional information about the Canadian federal electoral system, please contact us via our Web site (www.elections.ca) or by calling 1 800 463-6868, toll-free in Canada and the United States. Our hours of operation are Monday to Friday, 8:30 a.m. to 5:00 p.m. (Eastern time).
Yours truly,
Chantal Fortin
Enquiries Officer
Posted by: Did Some Research at October 30, 2007 08:52 AM
Enjoy Doctor Jankie ;-)
My apologies, I could find a better picture of you Steve, but I made do with what I could find on the net.
STEVELOCK HOLMES AND DOCTOR JANKIE
Posted by: Zorpheous at October 30, 2007 10:24 AM
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