The political finance systems
of different countries, states/provinces or other jurisdictions may involve
some or all of the following:
- campaign finance
disclosure and reporting requirements;
- restrictions on size and
source of contributions;
- campaign expenditure limits; and/or
- incentives such as public
funding/subsidies, access to the media and/or free advertising.
These measures are generally
adopted to reduce the corrupting influence that large donations or donations
from certain sources may have on elections and the political process. They are
also intended to encourage political competition and establish a “level playing
field” including for electoral participants with less access to financial
resources.
Political finance enforcement
gives force and effect to the political finance legal requirements. Timely and fair enforcement can:
- uncover political finance
irregularities and violations through audits of campaign finance
reporting;
- change the practices of
political parties and campaigns by publicizing violations and/or leading
to imposition of administrative, civil and criminal sanctions; and
- remedy political finance
violations by requiring the return of banned contributions or of public
funding, or other sanctions including removal from elective office.
Enforcement
Mechanisms
Each country’s legal framework
determines which government institutions act as political finance regulators
(PFRs) and which enforcement mechanisms they use. Mechanisms vary from one
jurisdiction to another, but they generally include some or all of the
following:
- Disclosure requirements. Campaigns are required
to report their contributions, expenditures and all other financial
transactions, and to produce documentation that substantiates their
reporting. Compliance with this requirement can be promoted by providing
training to parties and campaigns.
- Audit. The PFR audits campaign
reporting and financial documentation to ensure accurate and honest
disclosure, and to identify potential violations of the law.
- Oversight. External mechanisms
(e.g. a formal complaints process) allow other electoral participants,
civil society groups and the public to report suspected political finance
violations.
- Investigation. The PFR investigates
potential reporting irregularities, errors or fraud, and/or potential
violations of the law. The PFR may need the authority to subpoena records,
obtain the testimony of candidates and witnesses, and gain physical access
to campaign offices and documents.
- Negotiation. Rather than resorting to
civil action or criminal prosecution, the PFR may negotiate compliance or
conciliation agreements with offending campaigns. The PFR may also use alternative dispute resolution.
- Administrative penalties. The PFR may impose sanctions
in the form of expedited automatic penalties for relatively minor or
simple violations, or graduated penalties for more serious or complex
offences.
- Civil action. The PFR may file civil
actions in either general or specialized courts to enforce political
finance laws and/or seek monetary relief or injunctions.
- Criminal prosecution. The PFR may seek
prosecution of potential criminal violations of political finance laws.
A
Role for Civil Society and the Public
Civil society and the public
have a crucial role to play in the effective enforcement of political finance
laws. Non-governmental organizations and the media gather and disseminate
information about political finance laws, publicize violations committed by
electoral participants, and report on enforcement actions taken by the PFR
against the violators. Negative publicity is often a more potent deterrent than
the penalty that ultimately might be levied against a violator.
Non-governmental organizations
and private citizens can also file complaints with the PFR about suspected
political finance violations, conduct investigations of alleged irregularities
or violations, bring third-party legal actions, and mobilize pro-reform
political pressure or support.
Effective
Practices
In every country the enforcement
system is imperfect and represents a work in progress. Nevertheless, certain effective
practices can be identified in effective enforcement.
- The political finance law
should be clear and unambiguous, requiring political parties and candidates
to make full financial disclosure and produce supporting documentation.
The law must state which actions constitute violations, and must specify
administrative, civil and/or criminal sanctions for offences.
- The law should establish
an independent political finance regulator, with responsibility for
administering and enforcing the political finance laws in an impartial and
politically neutral manner.
- The law should give the
PFR an oversight role, with authority to review and audit the financial
reporting of candidates and parties, and to investigate them when
necessary.
- The law should grant the
PFR the authority and jurisdiction to enforce the law by imposing
monetary, electoral or criminal sanctions on offenders at the
administrative, civil or criminal level.
- The political finance
legal system should allow and encourage the participation of civil society
and the public in publicizing political finance issues, providing
oversight and enforcing the law.
- The law should
institutionalize incentives such as public funding/subsidies to political
parties and/or candidates, but it should also allow for these incentives
to be limited or withheld as a sanction.
