3rd-party advertiser Horizon Ottawa faces election audit

An independent committee has found "reasonable probability" that Horizon Ottawa contravened election financing rules when it promoted a festival attended by candidates before registering as a third-party advertiser.

The decision is potentially precedent setting, coming only a few years after new provincial rules were enacted.

Registered third-party advertisers raise money to promote like-minded candidates or run ads against political foes, but that spending is capped at $25,000.

"Quite similar to the nomination of a candidate, individual or corporation or trade union must come in, fill out the necessary paper work, and that paperwork must be certified with the city clerk," said John Pappas, the lawyer who spoke on behalf of complainant and prominent local developer Edward Phillips.

"If a person makes a third-party advertisement without being duly registered, that is very, very clearly an offence."

Horizon Ottawa made that error when it created and distributed fliers for its Horizonfest event before registering, Pappas argued, noting that it's only reasonable to suspect the group incurred some expense to design and print them.

Horizon Ottawa is a well-known lobby group that advocates for more progressive voices at the council table. The group was one of two registered third-party advertisers during the most recent municipal election.

The election compliance audit committee found the explanation compelling enough to direct city staff to appoint an auditor to look into it.

Once the audit is complete, the committee will evaluate if any potential violations should spark legal proceedings.

Edward Phillips, represented remotely by lawyer John Pappas, brought three separate applications to the election compliance audit committee, arguing two candidates and a third-party advertising may have contravened financing rules. (Elyse Skura/CBC)

No specific breach identified

Sam Hersh, a Horizon Ottawa board member, dipped his head as a committee member began reading its decision, and later told CBC he'd provide no further comment at this time.

His lawyer, Kyle Morrow, had hoped to see the application for an audit denied out of hand.

"There's no affidavit evidence, no photographic evidence, no witness evidence, no expert evidence from a lawyer or accountant," he said. "It's not even clear what specific provisions of the act the complainant is accusing the respondent of violating."

Committee members acknowledged the point, but said they were using discretion to ensure the questions at issue "are determined in a just manner."

Morrow forcefully argued that the nine-hour festival was not a fundraiser — it lost $6,200 — but told the committee Horizon Ottawa disclosed information on contributions from the festival in its filing "in the interest of transparency" because there's legal ambiguity surrounding what qualifies as a third-party ad.

Committee chair Timothy Cullen followed up on the point by asking if Horizonfest was a third-party advertisement.

"It could potentially be," answered Morrow.

The committee's conclusion  —  that Horizon Ottawa could potentially have contravened finance rules when it posted flyers for the event more than a week before registering its status on August 24, 2022 — factored in that definition.

Veteran politician also facing audit

Doug Thompson, who represented the people of Osgoode for three decades, is also facing an audit, after admitting to the committee that he undervalued reused signs he distributed during his failed 2022 bid.

The veteran municipal politician left retirement so he could attempt to retake the ward from George Darouze, the councillor he'd previously endorsed, slapping tape over the "re" in "re-elect" on a number of long-stored signs.

Doug Thompson, who represented the people of Osgoode for three decades, is also facing an audit. (Kamara Morozuk)

On his filing these appeared under what Pappas described as the "suspiciously round number" of $100.

After he was notified of the complaint, Thompson says he realized his team had pulled out more used signs than they originally intended, bringing the actual value closer to $500: "We made an error. It was regrettable, and we apologize."

3rd-party advertiser decries 'fishing expedition'

Horizon Ottawa's lawyer cast doubt on the motives of the complainant, developer Edward Phillips, who has faced public criticism for his own sizeable campaign donations.

"He's advanced rumours, conjecture, and inuendo," said Morrow. "This is nothing more than a fishing expedition to silence and intimidate those who disagree with the complainant politically."

The election compliance audit committee found there was not enough 'credible and compelling information' that Capital ward Coun. Shawn Menard may have broken election rules. (Elyse Skura/CBC)

Phillips said little during the meeting and provided no additional comment to CBC.

His third application for an audit, against Capital ward Coun. Shawn Menard, was denied. The committee found the complainant's suspicions that Menard undervalued reused campaign materials to be reasonable, but felt the councillor allayed those concerns in his response.