11/11/04 - Report to Ceann Comhairle re European elections of 11 June 2004

Disclosure of donations

Part IV of the Electoral Acts provides a framework for dealing with donations received by candidates at a European election. The provisions of Part IV which are relevant to the supervisory role of the Standards Commission at a European election are set out below.

2.1. Definition of a donation to a candidate at the European election

Section 22(2)(a) of the Electoral Acts provides that a donation to a candidate at the European election means any contribution given for political purposes by any person, whether or not the person is a member of a political party. Chapter 3 below sets out those matters which are regarded as donations to a candidate at a European election.

Section 22(2)(aa) of the Electoral Acts specifies that, in relation to a candidate at a European election, political purposes means:

• to promote or oppose, directly or indirectly, the election of a candidate;
• to solicit votes for or against a candidate;
• to present the policies or a particular policy of a candidate or the views of a candidate on any matter connected with the election;
• to present the comments of a candidate with regard to a policy or policies of a political party or a political group or of another candidate at the election or otherwise.

Section 2 of the Electoral Acts defines a person as:

• an individual;
• a body corporate (a body corporate and any of its subsidiaries are deemed to be one person);
• an unincorporated body of persons.

Section 22(2)(b) of the Electoral Acts contains a list of items which are specifically excluded from the definition of a donation. These items are also set out in Chapter 3 below.

Section 22(2)(c) of the Electoral Acts provides that a donation made to a candidate at a European election through an intermediary is deemed to be a donation made to the candidate.

This section also provides that where a donation made to a candidate is passed on by the candidate to his/her political party and he/she receives a written acknowledgement of the donation from the party, the donation is deemed to be a donation to the political party.

Section 22(2)(d) of the Electoral Acts specifies that where a person makes more than one donation to the same candidate in relation to the same election, the values of the donations must be aggregated and treated as a single donation.

2.2. Disclosure of donations by unsuccessful candidates

Under section 24(2)(a) of the Electoral Acts each unsuccessful candidate at a European election is required to furnish to the Standards Commission, within 56 days after polling day, a Donation Statement, and accompanying documentation, indicating whether or not, at any time in relation to the election, the candidate received a donation with a value greater than €634.87. If no such donation was received, the candidate is required to furnish a "nil" return. Where a donation is received, the value and nature of each donation together with the name, a description and the postal address of the donor are required to be disclosed.

Section 24(3) of the Electoral Acts provides that each Donation Statement must be accompanied by a Statutory Declaration stating that, to the best of the candidate's knowledge and belief, the Donation Statement is correct in every material respect and that all reasonable action has been taken to ensure its accuracy. The Statutory Declaration is required to be witnessed by a person who is either a practising Solicitor, a Commissioner for Oaths, a Peace Commissioner or a Notary Public.

2.3. Political donations accounts

Section 23B of the Electoral Acts provides that a candidate at a European election who receives a monetary donation which exceeds €126.97, must open and maintain an account in a financial institution in the State and lodge that donation, and any further monetary donations received of whatever value, to that account (this is referred to as a political donations account). When furnishing his or her Donation Statement and Statutory Declaration, an unsuccessful candidate who was required to open a political donations account must complete and furnish to the Standards Commission a Certificate of Monetary Donations which confirms that all monetary donations were lodged to the account and that all drawings from the account were used for political purposes.

The Certificate of Monetary Donations must be accompanied by a separate Statutory Declaration signed by the candidate declaring that the Certificate is correct in every material respect and that all reasonable action has been taken to ensure its accuracy. The Statutory Declaration must be witnessed by a person who is either a practising Solicitor, a Commissioner for Oaths, a Peace Commissioner or a Notary Public.

The Certificate of Monetary Donations must also be accompanied by a statement, provided by the financial institution where the political donations account was opened, specifying the transactions that took place in relation to the account during the period beginning on the date of opening the account and ending on polling day.

In accordance with the legislation, the Certificates of Monetary Donations and their accompanying Statutory Declarations and the statements from financial institutions are not laid before the Houses of the Oireachtas and are not available for public inspection.

2.4. Prohibited donations

a) Anonymous donations

Under section 23(1) of the Electoral Acts acceptance of an anonymous donation exceeding a value of €126.97 is prohibited. A donation is anonymous if a candidate does not know the name and address of the donor. If a prohibited anonymous donation is received by a candidate, the Standards Commission must be notified by the candidate within fourteen days of its receipt. The donation, or its value, must also be remitted by the candidate to the Standards Commission.

The Standards Commission is required to lay a copy of any such notification before both Houses of the Oireachtas and to dispose of the donation as directed by the Minister for Finance.

b) Donations in excess of the prescribed limit

Section 23A(1) of the Electoral Acts provides that the maximum value of donation(s) which may be accepted by a candidate at a European election from a particular person in a particular calendar year, either directly or through an intermediary, is €2,539.48. Where a person makes more than one donation to a candidate in a particular year, the values of the donations must be aggregated for the purpose of observing the maximum limit.

Section 23A(4) provides that the limit of €2,539.48 does not apply to a constituency office provided to the candidate by a person or, if more than one such office is provided, to whichever of the offices is nominated in writing by the candidate.

Section 23A(5) provides that where a donation is received and is prohibited because its value is over the limit, the candidate must notify the Standards Commission within 14 days of its receipt and remit the donation, or that part of a monetary donation which is over the limit, to the Standards Commission. As an alternative, the candidate may, within 14 days of its receipt, return the donation, or that part of a monetary donation which is over the limit, to the donor and keep a written record of that return for the purpose of its being furnished to the Standards Commission, if required.

c) Foreign donations

Section 23A(2) of the Electoral Acts provides that a candidate at a European election must not accept a donation, of whatever value, given by an individual (other than an Irish citizen) who resides outside the island of Ireland or by a body corporate or unincorporated body of persons which does not keep an office in the island of Ireland from which the carrying on of one or more of its principal activities is directed (hereafter referred to as a foreign donation).

Section 23A(5) provides that where a foreign donation is received it must be notified and remitted by the candidate to the Standards Commission within 14 days of its receipt. As an alternative, the candidate may, within 14 days of its receipt, return the donation to the donor and keep a written record of that return for the purpose of its being furnished to the Standards Commission, if required.

Unlike anonymous donations, the legislation does not require that copies of notifications received relating to donations exceeding the prescribed limit or foreign donations should be laid before the Houses of the Oireachtas. Similarly the legislation does not prescribe how remittances of such donations to the Standards Commission are to be disposed of.

2.5. Offences and penalties relating to the receipt of donations

Section 25 of the 1997 Act sets out the following offences and penalties in relation to donations :

a) Failure to furnish a Donation Statement and Statutory Declaration and, where required to, a Certificate of Monetary Donations and Statutory Declaration and accompanying statement from a financial institution, within 56 days of polling day. The penalty for this offence is a fine of up to €1,269.74 with a further fine of up to €126.97 per day for each day, after a conviction, on which the material is still outstanding.

b) Knowingly furnishing a Donation Statement or Statutory Declaration, Certificate of Monetary Donations or Statutory Declaration or a statement from a financial institution which is false or misleading in a material respect. The penalty is a fine of up to €25,394.76 and/or up to 3 years imprisonment.

c) Failure to notify the Standards Commission of, or remit to the Standards Commission, an anonymous donation may result in a fine of up to €1,269.74.

d) Failure to notify the Standards Commission of, or remit, as appropriate, to the Standards Commission, or return, as appropriate, to the donor, a foreign donation or a donation which is in excess of the prescribed limit, may result in a fine of up to €1,269.74.

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