Vexed Bermoothes

As we all know, there’s a surprising amount of money sloshing around in Bermuda politics.

Both Wayne Furbert and David Burt of the PLP have called for reform of political finance in the past … but the PLP Government has not acted.

So, we will continue to have allegations of “pay to play” and barely veiled naughty games of “you rub my back and …”

It is time to address political finance in Bermuda.  (See my earlier posts here and here.)  It should be addressed now so that standards are in place for the next election campaign.

Interestingly, as part of the reform effort following the Turks & Caicos corruption debacle, they are proposing very concrete steps to reign in political donations and “loans”.  Recommendations (as supported by the UK Government) are shown below.

How about Bermuda adopt that Gold Standard™ we are always pontificating about?  Hmm?  It’s a PATI for Politicians!

Donations  to  political  parties

• Donations  should  only  be  able  to  be  made  to  candidates  in  the  twelve  month  period  before polling  day  in  a  general  election,  or  in  the  case  of  a  by-­election  during  the  period  from  the   notice  of  vacancy  to  polling  day.  Outside  these  times  donations  can  continue  to  be  made  to   registered  political  parties.
• Only  registered  electors  can  donate  to  political  parties  or  candidates.  There  should  be  a   donation  limit  of  $7,500pa  to  an  island  seat  candidate  and  $20,000pa  to  an  at‐large  seat candidate.  Donations  to  a  political  party  should  be  capped  at  $20,000pa  and  the  annual  limit   of  total  donations  from  an  elector  remain  at  $50,000pa    There  should  be  a  further  consultation  on  the   amount  of  these  limits.
• Candidates  can  contribute  no  more  than  $50,000  to  their  own  campaign.
• All  donations  above  $50  must  be  identified  –  ie  not  anonymous  –  and  a  receipt  issued  by  the party.  All  donations  over  $50  to  be  disclosed.
• It  should  be  an  offence  to  channel  a  donation  from  an  impermissible  donor  through  a permissible  donor,  with  penalties  for  the  planned  recipient  party/candidate,  the  ‘channeller’   and  the  actual  donor.
• No  donations  allowed  from  organisations,  companies  etc.
• No  donations  from  any  individual  who  holds  a  government  contract  worth  $100,000  or  more, or  who  is  a  beneficiary  of  such  a  contract
• In‐kind  and  non-cash  contributions,  as  well  as  sponsorships,  are  subject  to  the  donation  rules
• Goods  or  services  provided  at  less  than  market  rates  will  attract  donation  rules  in  regard  to the  difference  between  the  favourable  and  market  rate
• Party  membership  fees  are  not  donations  as  long  as  they  are  less  than  $100pa

Loans  and  other  income

• Loans  are  allowable  from  registered  electors  up  to  a  limit  of  $100,000.  If  less  than  market  rate   is  charged  then  the  difference  between  the  interest  payable  and  the  market  interest  payable   is  to  be  considered  a  donation  and  subject  to  the  donation  rules.  Loans  can  not  be  taken  for  a   period  longer  than  four  years.  All  loans  and  their  terms  to  be  disclosed.  A  loan  can  not  be   forgiven  by  the  lender  if  to  do  so  would  infringe  the  donation  limits.
• Loans  from  commercial  institutions  can  only  be  made  on  market  terms.  If  any  loan  is  made  on   terms  more  favourable  than  those  available  in  the  market,  or  is  forgiven,  the  loan  is   impermissible.  All  commercial  loans  and  their  terms  to  be  disclosed.
• Political  parties  and  candidates  can  earn  other  income  to  be  used  for  political  purposes  if  the source  of  the  income  is  either  (a)  disclosed  at  time  of  registration  (ie  ownership  of  a  building)   or  (b)  acquired  with  permissible  donations  under  the  scheme.  All  income  generating  activities   to  be  disclosed.

Reporting  and  disclosure

• All  registered  officers  must  file  a  statement  of  income  and  expenditure  every  six  months.  A   power  will  be  needed  to  make  regulations  specifying  the  categories  of  expenditure  the  return   should  be  broken  down  into.
• During  an  election  additional  reports  should  be  submitted  every  week  detailing  income  and   expenditure  in  that  week.  A  power  will  be  needed  to  make  regulations  specifying  the   categories  of  expenditure  the  return  should  be  broken  down  into.
• All  reports  and  disclosure  returns  should  be  submitted  electronically
• The  Registrar  should  be  required  to  make  public,  using  the  TCIG  website,  the  six-­monthly  and election  period  reports  within  one  month  and  24  hours  respectively.