Port Moody councilor asks politicians to declare all campaign donations from people linked to developers

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A Port Moody councilor calls for a new code of conduct that would require politicians to publicly declare the amount and source of any campaign contributions received from people associated with a developer before voting on project proposals, and also encourage them to recuse themselves from these decisions.

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“You want people to be aware, the public to know that this connection exists and that they have to be rigorous in targeting the public,” said Hunter Madsen, who filed a motion Tuesday.

It’s a psychological check against being in debt, which can be complex to track but carries risks, Madsen said.

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In his time on the council, Madsen discovered that different politicians ask developers more or less questions. Some try to get better or different terms for the community, while others may push a request more quickly.

“People are not particularly good at understanding whether or not they are being influenced. They tend to think they are smarter than they really are,” Madsen said.

A provincial ban on direct donations to municipal campaigns by corporations and unions has been in place since November 2017 after Postmedia investigated the 50 largest donors to the provincial government and found that 21 property developers were on the list.

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However, Madsen found that real estate business owners and their directors, employees and family members have since legally resorted to making significant donations as individuals to as many council candidates in as many different BC municipalities as they wish.

For example, Langley-based Marcon Developments, which is privately owned and managed by members of the Paolella family, was listed in the 2014 municipal election as having doled out more than $33,000 to 17 candidates running primarily in Langley and Coquitlam. , two cities where there were big construction proposals in the pipeline. In 2018, $18,000 in donations designated as coming from six members of the Paolella family were lawfully given to mayoral and council candidates in Langley, Coquitlam and Port Moody, where the company had submitted project proposals, according to Madsen’s research.

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It also found that, during the 2014 and 2018 municipal elections, Burnaby-based Beedie handed out more than $169,000 to a broad set of candidates in 10 Lower Mainland municipalities. In 2014, almost all of these donations were designated as “corporate” and made by various company entities. After the ban, three members of the Beedie family legally used their right to make individual donations, transferring up to 37 of those contributions totaling more than $42,000 to candidates and organizations in different cities in British Columbia.

Elections BC requires that for any donation valued at $100 or more, the identity of the contributor and the amount must be published in an online system, but the submissions only include individual names and not related companies. Madsen was able to identify some high-profile and business executives through Google searches.

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It also found that, in Port Moody, the incumbent politicians with the longest terms on the council appeared to have their 2018 bids supported primarily through donations from people linked to the real estate and construction industry. While incumbents got an average of 65 per cent of their funding from people linked to development interests, newcomer candidates got an average of just six per cent.

“My goal is not to disparage these developers. They have a good reputation. They are also politically engaged and do great philanthropic work. I don’t really take anything away from them for the fact that they are giving money to a lot of candidates in areas that they might have an interest in. It all depends on the judgment and discretion of the city officials and whether they accept that money or say ‘no.’”

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There is no implication of misconduct, but it is a reasonable question to ask whether it is ethical and prudent for elected officials to finance their campaigns in a way that leads to divided loyalties, Madsen said. Finding ways to neutralize this impact could lead to exploring public campaign financing for candidates.

In addition to the motion he is presenting to the Port Moody City Council, Madsen also plans to take the code of conduct idea to other BC cities through the Union of BC Municipalities. Beyond declaring donations and challenging decisions, Madsen suggests politicians could commit to no more developer-related donations.

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