ACT No. XXIV of 2015 AN ACT to regulate the formation, the inner structures, functioning and financing, of political parties and their participation in elections. (maximumexpenses)

I assent.

M ARIE L OUISE

(L.S.)

C OLEIRO P RECA

President

28th July, 2015

ACT No. XXIV of 2015

AN ACT to regulate the formation, the inner structures,

functioning and financing, of political parties and their participation

in elections.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

(1) The short title of this Act is the Financing of

Political Parties Act, 2015.

(2) This Act shall come into force on such date as the Minister

responsible for Justice may by notice in the Gazette appoint and

different dates may be so appointed for different purposes or

provisions of this Act.

PART I

General

(Article 46)

Form of Oath of Office to be taken by auditors assisting the

Commission for the purposes of this Act

I, ..................................., do swear/affirm that I will faithfully

perform my duties as auditor to assist the Electoral Commission in

the execution of its functions under the Financing of Political Parties

Act according to law and with impartiality and that I will not reveal to

any third party any information which comes to my knowledge in the

execution of my duties except as obliged or authorised by law or as

required for the execution of my duties. (So help me God.)

Passed by the House of Representatives at Sitting No. 294 of the

20th July, 2015.

Ċ ENSU G ALEA

Deputy Speaker

R AYMOND S CICLUNA

Clerk of the House of Representatives

€2.70

In this Act, unless the context otherwise requires -

"auditor" shall have the same meaning assigned to it in article 2

of the Accountancy Profession Act;

"campaign expenditure" means expenses incurred within the

parameters of article 46(1) of the Fourteenth Schedule of the General

Elections Act, article 97 of the Third Schedule to the Local Councils

Act and regulation 2 of the European Parliament Elections

(Maximum Expenses) Regulations

Provided that in the computation of campaign expenditure,

where a political party or candidate charges a fee for participation in

political activities or for any goods or services made available at such

activities the amount of any such fees charged and properly accounted

for shall be deducted from the total amount of campaign expenditure;

"candidate" means a person nominated for election to the House

of Representatives, a local council or to the European Parliament,

whether such person is standing as a member of a political party or

"Commission" means the Electoral Commission established in

accordance with article 60 of the Constitution;

"donation" means any benefit received in furtherance of the

activities or functions of a political party, by or on behalf of a political

party, by a member of a political party, a candidate or by any

organisation, whether corporate or otherwise, in which the political

party, directly or indirectly exercises effective management and

control and shall include, unless otherwise provided

(a)

any gift of money or other property;

(b)

any sponsorship;

(c)

any money spent by a donor or donors, as the case

may be, in paying any expenses incurred directly or indirectly,

by or on behalf of a political party, a member of a political party

or candidate;

(d) any loan given on terms more favourable than

ordinary commercial terms prevalent at the time when the loan

was made;

(e)

the cost price to the provider of property or services

given otherwise than on commercial terms or below the market

value

Provided that property of whatever nature devolving

to a political party causa mortis and voluntary and unpaid work

whether manual, clerical or professional of any kind done for

the benefit of a political party by its own members or by persons

involved in the political party’s activities or campaigns, shall

not be considered as a donation for the purposes of this

definition;

"election" means

(a)

a general election for members of the House of

Representatives held in accordance with articles 52 and 56 of

the Constitution of Malta; or

(b) an election held in accordance with the Local

Councils Act; or

(c)

an election held in accordance with the European

Parliament Elections Act;

"European Parliament election period" means a period of six

weeks before the date fixed for the European Parliament elections in

accordance with article 5 of the European Parliament Elections Act;

"financial year" means a period of twelve months with fixed

dates for their beginning and their completion;

"general election period" means the period

(a)

beginning with the date on which the President of

Malta dissolves Parliament, by Proclamation; and

(b)

ending with the date of the result of the poll;

"local council election period" means a period of six weeks

before the date fixed in article 8(6) of the Local Councils Act;

"member of a political party" means a person who is a registered

member of a political party in accordance with the requirements and

formalities as provided in the statute of the political party;

"Minister" means the Minister responsible for Justice;

"nomination paper" means the application by a political party, a

member of a political party or candidate, for names to be inserted in

the election lists; and

"political party" means a free association of persons, the aims of

which include the participation in the formation of the political will of

the people by securing the election of one or more of its members to

the House of Representatives, the European Parliament or Local

Council, and ensuring a continuing active relationship between the

people and the state institutions.

There may be formed political parties in order to attain free

democratic order in the formation of the people’s political will,

according to the Constitution, and the State shall, as a matter of public

interest, favour the formation and operation of such political parties

Provided that such formation and operation of political

parties shall be within the parameters established by law.

Political parties shall have a legitimate aim and shall Legality.

conform to the Constitution and the laws of the State

Provided that political parties may lawfully have, as their

aim, amendments to the Constitution and to the laws of Malta

Provided further that all amendments shall be brought

about by legal means.

Political parties shall receive equal treatment by the State Equal treatment.

without prejudice to any law or regulation based on objective

differences particularly those based on the size of the parties or which

regulate the workings of the electoral process.

(1) No person shall be forced to join or belong to a Persons’ right to

associate.

political party against his will.

(2) No person shall be debarred from membership of a

political party on the basis of gender, race, financial status, sexual

orientation or gender identity.

(3) No person shall be discriminated against on the ground

that the said person is a member of a political party

Provided that the provisions of this sub-article shall not

apply to persons, who by reason of their employment, are under a

duty of discretion in political matters or who hold offices which are

incompatible with the exercise of political activity, so long as such

restrictions are necessary in a democratic society.

(1) Without prejudice to the provisions of sub-article (2) Members’

of article 6, political parties shall decide freely on the admission of rights.

members in accordance with the relevant provisions of their statutes

and the political party shall not be required to give reasons for any

refusal of an application for membership.

(2) A member of a political party shall, at any times, be

entitled to withdraw his membership from that political party and

such withdrawal shall have an immediate effect.

(3) The exercise of voting rights within the party structures

may be made conditional on members of the political party having

paid their membership dues.

(1) Political parties shall enjoy a legal personality and Legal status.

the right to sue and be sued. Political parties shall also have all the

rights of free expression which are competent to individuals

according to the Constitution.

(2) Political parties shall have a written statute and the statute

shall contain provisions on

(a) the political party’s name and any short form used

and its objectives;

(b)

members joining and leaving the political party;

(c)

the rights and duties of its members;

(d) permissible sanctions against members, and their

exclusion from the political party; and

(e)

the political party’s general structure and the

officials which the party shall have.

(3) Political parties shall send a copy of their statute to the

Electoral Commission and they shall also keep that statute updated with

amendments which are made to the statute from time to time which

shall also be sent to the Electoral Commission within one month from

when they are enacted and the Commission shall render that statute and

amendments available to the public.

(4) The names of officials of political parties shall be public.

Political parties shall ensure that the right of defence is

respected in any internal disciplinary procedures taken with regard to

their members.

The statute of a political party shall provide for the manner

in which the said party may be dissolved and for the manner in which

the assets of the party shall be disposed of in the event of dissolution.

PART II

Registration

There shall be a register of political parties to be

maintained by the Commission in such form as the Commission may

determine.

(1)

A nomination in relation to an election may only be

made

(a)

in the name of a registered political party; or

(b) by an independent person who does not purport to

represent any political party

Provided that only registered political parties may

nominate candidates for election under that political party’s name

Provided further that no independent candidate may make

use of the name of a political party.

(2) For the purpose of sub-article (1) a person does not purport

to represent any political party if either

(a) the description of the candidate given in his

nomination paper, is "independent"; or

(b) no description of the candidate is given in his

nomination paper.

(3) For the purposes of this Act a person stands for election in

the name of a registered political party if his nomination paper is

confirmed by an officer authorised by the political party who shall be

chosen in accordance with the procedures of the political party and for

the purpose of this Act shall be considered as the “nominating officer”.

(1) Without prejudice to article 8, a political party shall Officials of

not be registered in the register for political parties unless it has, in its political parties.

statute, provision for the election of

(a) the political party’s leader or leaders by whatever

name or designation the leader or leaders are referred to; and

(b) a political party’s treasurer by whatever name the

person performing the functions of treasurer is referred to.

(2) The person or persons registered as the political party’s

leaders shall be the overall leader of the party.

(3) It shall be the duty of the political party’s treasurer to

arrange the political party’s finances in accordance with this Act

including to

(a)

prepare the political party’s annual accounts for

audit and present them for the political party’s approval at the

annual general meeting of an appropriate party organ;

(b) ensure the political party’s compliance with the

relevant provisions of the accounting requirements and control

of donations, and any other relevant financial transactions; and

(c)

perform any other function in relation to the

finances and financial reporting of the political party.

An application to the Commission for registration of a

political party shall include

(a) a declaration that it intends to present candidates for

elections;

(b) a declaration by the political party indicating the

political party’s officials required in accordance with article 14;

and

(c)

the political party’s name and registered address

Provided that when the registered political party

changes the location of its head office or changes its postal

address, it shall, within fourteen days of such change, send

notice thereof to the Commission.

(1) A political party’s application for the purposes of

registration may include a request for the registration of descriptions

to be used on nomination or ballot paper.

(2) The Commission shall register the description supplied

unless in its opinion the description is

(a)

the same as a registered description of another

political party, member of a political party or candidate which

has been registered before;

(b) likely to be confused by voters with a registered

description of a political party, member of a political party or

candidate which has been registered before;

(c)

obscene or offensive; and

(d) of such a character that its publication would be

likely to amount to the commission of an offence.

(3) For the purposes of this article “description” means the

name of the party and the acronym in that language or languages that

the party chooses.

(1) A political party’s application for the purposes of

registration may also include a request for the registration of the

political party’s emblem to be used by the political party on ballot

papers.

(2) Where a request is made by a political party under this

article in relation to an emblem, the Commission shall register the

emblem as an emblem of the political party unless in its opinion the

emblem is

(a)

the same as an already registered emblem of another

political party;

(b) likely to be confused by voters with a registered

emblem of a political party which is already registered;

(c)

obscene or offensive;

(d) of such a character that its publication would be

likely to amount to the commission of an offence; and, or

(e)

would be likely, were it to appear on a ballot paper

issued at an election

(i) to result in an elector being misled as to

the effect of his vote, or

(ii) to contradict, or hinder an elector’s

understanding of, any directions for his guidance in

voting given on the ballot paper or elsewhere.

A political party may apply to the Commission to have its Changes to the

register.

entry in the register amended. Such amendments may include

(a)

changing its registered name;

(b) the insertion, alteration, substitution or removal of a

description;

(c)

the insertion, substitution or removal of an emblem;

and, or

(d) the insertion of any other information as may be

prescribed by regulations made by the Minister, since

(i) the time when the political party applied

for registration, or

(ii) if a notification has been previously

given for the confirmation of registered particulars

in relation to the political party, the time when the

last notification was given.

Where the Commission refuses an application or part Appeal from

thereof by a political party under any of the preceding articles it shall refusal.

notify the political party of its reasons for refusing the application or

part thereof and if the political party feels aggrieved by such refusal,

the political party may contest against such refusal by sworn

application filed in the First Hall, Civil Court

Provided that the political party may also re-submit a

modified application.

(1) If at any time any particulars in a political party’s

entry in the register which relate to any relevant matter cease to be

accurate, the person responsible for registering the political party

shall notify the Commission in writing of such inaccuracy and such

notification shall also specify the accurate particulars in respect of

that matter.

(2) Where the Commission receives a notification under this

article, it shall cause any change required as a consequence of the

notification to be made in the political party’s entry in the register, as

soon as is reasonably practicable.

Once a political party is registered, its entry may only be

removed from the register if -

(a)

the political party applies to have its entry removed

from the register; or

(b) the political party shall not have nominated

candidates for elections for ten years; or

(c)

in any case where there is dissolution of a political

party in accordance with article 11,

and in such case, the Commission shall remove the political party’s

entry from the register.

Political parties which are in existence at the time of the

coming into force of this article shall have a period of six months

from the said coming into force to comply with the requirements set

out in this Part of this Act.

PART III

Accounting requirements

(1) Political parties shall give account to the Commission

in respect of their financial administration. The Commission may

request information, on its own initiative, concerning the said financial

administration as provided in this Act.

(2) Political parties which are found by the Commission to

have infringed any of the provisions of this Act shall be subject to

sanction

(a)

by mere exposure and adverse comment being made

public; and, or

(b)

by the infliction of administrative fines.

(1) The treasurer of a political party shall ensure that the Duty to keep

accounting records are kept, with respect to the political party, in accounting

records.

accordance with the principles and accounting practices and in

accordance with generally accepted audit standards and in such manner

which is sufficient to show and explain the political party’s

transactions.

(2) The accounting records shall be kept in such manner that

they

(a)

disclose, at any time, and with reasonable accuracy,

the financial position of the political party at that time; and

(b) enable the treasurer to ensure that any statement of

accounts prepared by him for the purposes of the annual

statements of accounts comply with the principles and

accounting practices and in accordance with generally accepted

audit standards and with the relevant provisions of this Act.

(3) The accounting records must in particular contain

(a)

sufficient details to be able to identify all sources of

income received and all disbursements made by the political

party, and the matters in respect of which such receipts and

expenditure takes place;

(b) a record of the assets and liabilities of the political

party; and

(c)

the details of entities including commercial

enterprises which are related directly or indirectly to a political

party or are otherwise under its effective management or

control.

(1) The treasurer of a political party shall prepare an Annual

annual statement of accounts, in respect of each financial year, of that statements

accounts.

political party, which statement must include

(a)

a statement of income and expenditure;

(b) the statement of the financial position as at the end

of the financial year;

(c)

the statement of cash flows; and

(d) all supplementary notes and schedules related to

paragraphs (a), (b) and (c)

Provided that for the purposes of this sub-article "financial

year" means such a consecutive period of twelve months starting

from the date chosen by the political party for the start of its financial

year.

(2) The statement of accounts under this article shall also

comply with such requirements as to its form and contents as shall be

prescribed by regulations made by the Minister, as advised by the

Commission.

(3) Any member of the political party, candidate, central or

local party official shall provide the relevant information in

accordance with the relevant provisions in this Act to the political

party’s treasurer, within a reasonable time, and in default he shall be

guilty of an administrative offence punishable by the Commission

with an administrative fine in an amount of between one hundred euro

(€100) and two thousand euro (€2,000)

Provided that if any member of a political party, candidate,

central or local party official provides any false information, he shall

be liable to the punishments provided for false declarations, in

accordance with article 188(2) of the Criminal Code.

(1) The treasurer of a political party shall ensure that

any accounting records and, or statement of accounts prepared for the

purposes of this Part in respect of the political party are preserved for

at least ten years from the end of the financial year to which the

statement relates.

(2) Where a political party is dissolved within the mentioned

period of ten years, the obligation to ensure that the accounting

records and, or statement of accounts prepared for the purposes of this

Part, shall continue to be discharged by the last treasurer of the

political party, unless the Commission gives its authorisation for the

records to be destroyed, or for the records to be otherwise disposed

of, subject to any conditions that it may deem necessary to impose.

(1) The accounts of a political party shall be kept in

such form as may, from time to time, be provided in regulations made

under this Act, and shall each year be audited by an auditor according

to generally accepted auditing standards.

(2) Upon failure to submit audited accounts in accordance

with the provisions of sub-article (1), the Commission may establish a

further period of time for the submission and in default appoint an

auditor of its choice to audit the political party’s accounts.

(3) The expenses of any audit carried out by an auditor

appointed by the Commission, including the auditor’s remuneration,

shall be recovered by the Commission, as a civil debt, from the funds

of the political party concerned.

(1) An auditor appointed to carry out an audit for the Supplementary

provisions

purposes of annual audits

regarding

auditors.

(a) shall have a right of access at all reasonable times to

the political party’s books, documents and other records; and

(b) shall be entitled to require from the treasurer, any

former treasurer and from any other political party official as

the auditor deems fit, such information and explanations as he

thinks necessary for the performance of his duty as auditor; and

(c)

shall mutatis mutandis have all the powers and

functions of an auditor who audits a commercial company.

(2) If any person fails to provide an auditor with any access,

information or explanation to which the auditor is entitled by virtue of

sub-article (1), the Commission shall give that person such written

directions as it considers appropriate for securing that the default is

made good.

(3) A person guilty of lack of compliance to any directions of

the Commission under sub-article (2) shall be guilty of an offence

under this Act and shall be liable to an administrative fine of between

one thousand euro (€1,000) and ten thousand euro (€10,000) and to

suspension from holding an office in a political party for a period of

not more than three months by way of administrative sanction.

(4) Any person who knowingly or negligently makes a

representation, whether written or oral, to an auditor appointed to

carry out an audit for the purposes of annual audits, which conveys

any information or explanation which is materially misleading, false

or deceptive and to which the auditor is entitled by virtue of sub-

article (1), shall be guilty of an offence and shall be liable to an

administrative fine of between one thousand euro (€1,000) and ten

thousand euro (€10,000) and to suspension from holding an office in

a political party for a period of not more than three months by way of

administrative sanction.

(1) The treasurer of a political party shall, within four

months of the end of that financial year, deliver to the Commission

the audited accounts prepared for that financial year for the purposes

of annual statements of accounts which shall also include accounts

related to election campaigns.

(2) If a political party fails to comply with the requirements of

sub-article (1) the Commission shall have the right to issue an order

whereby the treasurer of the political party shall be obliged to deliver to

the Commission by not later than seven days after the end of the period

allowed for the audit of the accounts

(a)

the documents mentioned in sub-article (1); and

(b)

a copy of the auditor’s report.

(3) When the Commission considers that there exist special

reasons for doing so, which reasons shall be listed in the notice

hereunder referred to, it may, on an application made to it before the

end of the period otherwise allowed under this article for delivering a

political party’s documents according to sub-articles (1) or (2) for any

financial year, by notice, extend that period for a further period

specified in the notice.

(4) Any documents delivered to the Commission under this

article shall be kept by the Commission for such further period as it

may deem fit.

Where the Commission receives any audited accounts, as a

result of the obligation of delivery of statements of accounts to it, it

shall, within one month after receiving the statement, make a copy of

the statement available for public inspection and it shall post the said

statement on the website of the Commission and keep it available for

public inspection and on the said website for the period for which the

statement is kept by it.

(1)

If in the case of a political party -

(a)

any requirements of regulations as to the form and

contents of a statement of accounts are, without reasonable

cause, not complied with in relation to any statement of

accounts delivered to the Commission by way of a legal

obligation; or

(b) any statement of accounts, notification or auditor’s

report required to be delivered to the Commission under this

Part is, without reasonable cause, not delivered to it before the

end of the relevant period,

the political party shall be liable to an administrative fine of not more

than ten thousand euro (€10,000).

(2) For the purposes of sub-article (1) "relevant period" means

the period allowed by law for delivering the statement, notification or

report to the Commission or, if that period has been extended, or

further extended, according to law, that period as so extended.

Any person who knowingly or negligently makes a False

statement to the Commission on behalf of a political party, or of a statements.

member of a political party for any purpose of this Act, which

statement is false in any material particular in which it is made, or

purports to be made, shall be liable to an administrative fine not

exceeding ten thousand euro (€10,000) and to suspension from

holding office in a political party for a period not exceeding three

months by way of administrative sanction.

(1) If it appears to the treasurer of a political party that Revision of

any statement of accounts for any financial year of the political party defective

statements of

has not complied with any requirements of regulations relating to the accounts.

delivery of prescribed documents, he may prepare a revised statement

of accounts which revised statement shall also be in compliance with

the other provisions of this Act.

(2) Where the audited accounts have already been delivered to

the Commission, the revisions shall be confined to

(a)

the correction of those parts in which the accounts

do not comply with the prescribed requirements; and

(b) the

making

of

any

necessary

consequential

alterations.

(3) If it appears to the Commission that there is, or may be, a

question whether any audited accounts delivered to it according to

law complies with the prescribed requirements, it may give notice in

writing to the treasurer of the political party in question indicating

where it appears to it that such a question arises or may arise.

(4) The notice shall specify a period of not more than one

month for the treasurer to give the Commission an explanation of the

statement of accounts or prepare a revised statement.

(5) If at the end of the specified period, or such longer period

as the Commission may allow, it appears to the Commission -

(a) that no satisfactory explanation of the statement of

accounts has been given; and

(b) that the statement has not been revised so as to

comply with the prescribed requirements,

it may make an application to the First Hall, Civil Court, in

accordance with sub-article (6).

(6) The Commission may make an application to the First

Hall, Civil Court

(a) for a declaration that the statement of accounts does

not comply with the prescribed requirements; and

(b) for an order requiring the treasurer of the political

party to prepare a revised statement of accounts.

(7) If the First Hall, Civil Court, orders the preparation of

revised accounts, it may

(a)

give such direction as it thinks fit; and, or

(b) order that all or part of the costs of, and incidental

to, the application are to be borne by the treasurer of the

political party.

(8) The Minister may by regulations make provision with

respect to the application of the provisions of this Act in relation to the

preparation and auditing of statements and of revised statements of

accounts, and their delivery to the Commission, and may in particular

make provision for any matter for which provision may be made by

regulations under this Act with respect to the non-applicability, to such

extent or in such circumstances, or both, as regulations under this sub-

article may specify, of any of the provisions of this Act with regard to

administrative fines and sanctions for failure to submit proper

statements or revised statements of accounts.

(9) The provisions of this Act regarding the public inspection

and posting on the website of the Commission of political parties’

statements of accounts shall apply in relation to any revised statement

of accounts received by the Commission in accordance with

regulations made under sub-article (8) as applied in relation to any

statement of accounts received by it according to law.

(10) The provisions of this article apply equally to statements of

accounts that have already been revised, in which case the references

to revised statements of accounts shall be read as references to further

revised statements.

PART IV

Control of donations to registered parties

Political parties shall be entitled to accept donations, Funding of

which shall include contributions made by the members themselves. political parties.

Political parties shall not receive donations

Non-permissible

donations.

(a) which are evidently made in the expectation of, or in

return for, some specific financial or political advantage; and, or

(b) from any public corporation or any parastatal body,

company, or entity in which the State has a controlling interest

Provided that political parties shall be permitted to

receive services from State sources only under a special law

which shall regulate

(i) assistance in kind (such as air-time,

access to means of communication and related

matters);

(ii) the proportions on the basis of which

such assistance is to be provided to different

political parties; and

(iii) the timing of the assistance given before

elections, after elections, during the European

Parliament election period, the Local Council

election period, the general election period and

during referendum campaigns;

(c)

given anonymously;

(d) given confidentially and subject to the condition that

the source shall not be revealed to third parties although the

source of the donation is known to the political party in an

amount exceeding five hundred euro (€500) from the same source

in any year;

(e)

in excess of twenty-five thousand euro (€25,000)

during one calendar year from the same source

Provided that for the purposes of this paragraph

companies forming part of the same group of companies or which

directly or indirectly are controlled by each other or by the same

person or group of persons, shall be considered as a single source;

(f)

consisting of a loan on more favourable terms than

ordinary commercial terms at the time when the loan was made,

where the interest in respect of a period of twelve months which

would have been payable by the political party had the loan

been taken on ordinary commercial terms would have exceeded

the interest actually owed for the same period by the political

party to the person making the loan by an amount in excess of

twenty-five thousand euro (€25,000);

(g) From a foundation, trust or a body corporate where

the ultimate beneficial owner is not identifiable.

(1) The value of any donation in the form of a gift to the

political party, other than money, shall be taken to be the cost price to

the donor of the gift or property in question.

(2) Where, however, any gift to the political party, is such that

(a)

any money or other property is transferred to the

political party, pursuant to any transaction or arrangement

involving the provision by or on behalf of the political party, of

any property, services or facilities or other consideration of

monetary value; and

(b) the total value in monetary terms of the

consideration so provided by or on behalf of the political party,

is less than the amount transferred to the political party or, as the

case may be, the cost to the transferor of the property

transferred, the value of the donation shall be taken to be the

difference between

(i) the amount of money or cost to the

transferor of the property in question; and

(ii) the total value in monetary terms of the

consideration provided by or on behalf of the

political party.

(3) The value of any donation or services made by way of any

sponsorship provided in relation to the political party shall be taken to

be the amount of the money or, as the case may be, the cost to the

donor of the property transferred as a donation; and accordingly any

value in monetary terms of any benefit conferred on the person

providing the sponsorship in question shall be disregarded.

(4) The value of any donation consisting of the provision,

otherwise than on commercial terms, of any property, services, loans

or facilities for the use or benefit of the political party, shall be taken

to be the amount representing the difference between

(a)

the total value in monetary terms of the cost to the

donor in respect of the provision of the property, services or

facilities; and

(b) the total value in monetary terms of the

consideration, if any, actually so provided by or on behalf of the

political party.

(1) For the purposes of this Act sponsorship shall be Sponsorship.

deemed to be made, in relation to a political party where

(a) any money or property is transferred to the political

party; and

(b) the purpose or one of the purposes of the transfer is

or may be, having regard to all the circumstances, reasonably be

assumed to be

(i) to help the political party meet, to any

extent, any expenses incurred or to be incurred by

or on behalf of the political party; or

(ii) to secure that, to any extent, any such

expense is not so incurred.

(2) For the purposes of sub-article (1) expenses may include,

among others, expenses incurred or to be incurred in connection with

(a)

any conference, meeting or other event organised by

or on behalf of the political party;

(b) the preparation, production or dissemination of any

publication by or on behalf of the political party; or

(c)

any study or research organised by or on behalf of

the political party.

(3) The following shall not, however, constitute sponsorship

by virtue of sub-article (1)

(a)

the making of any payment in respect of

(i) any charge for admission

to

any

conference, meeting or other event; or

(ii) the purchase price of, or any other charge

for access to, any publication;

(b)

the making of any payment in respect of the

inclusion of an advertisement in any publication where the

payment is made at the commercial rate payable for the

inclusion of such an advertisement in any such publication; and,

or

(c)

the provision, on commercial terms, for any

property, services or facilities for the use or benefit of the

political party.

(1) Any donations exceeding the amount of five

hundred euro (€500) from the same source shall be recorded together

with the amount of the donations, the donor’s name and address, or

company registration details, in the case when the donor is a

registered company, the date on which the donation was received and

the date on which the donation was accepted and any other relevant

details

Provided that when a donation is collected during a

manifestation or during an event organized by the political party or by

the independent candidate and in the case that the donation does not

exceed the amount of fifty euro (€50) the donation shall not be

recorded.

(2) Any donation which by itself does not exceed the amount

of five hundred euro (€500) but which, when added to any other

donations or benefits accruing to the political party from the same

source within the same calendar year, exceeds the said amount shall

be recorded at that point in which the said amount is reached.

(3) Whosoever maliciously, with intent to conceal the origin

and amounts of donations, divides a donation into smaller amounts,

or in order to circumvent the recording and reporting requirements

provided for in this Act shall be guilty of an offence and shall be

liable to an administrative fine not exceeding ten thousand euro

(€10,000).

(4) The Commission shall, where it considers it necessary for

the proper enforcement of the provisions of this Act and subject to its

obligation to act in a proportionate manner, have the power to

investigate and demand to be provided with all information as it may

require from any political party, individual, legal person, body,

including any financial institution and, or any telecommunication

service provider, who may be in possession of such information to

determine the source of any donation received by political party

Provided that political parties shall not be under an

obligation to reveal to the Commission the source of any donation of

not more than five hundred euro (€500) made to them confidentially

unless the Commission provides proof that there are reasonable

grounds to believe that the amount actually donated confidentially in

a period of one year from the same source exceeds the sum of five

hundred euro (€500).

(5) An independent candidate shall be subject to the provisions

of sub-articles (1), (2), (3) and (4).

(1) The treasurer of a political party shall, each year, Reports to be

prepare a donation report showing the amount received by the made

political parties,

political party by way of donation, in respect of each of the following an

member of a

periods -

political party or

candidate.

(a)

January to April;

(b)

May to August; and

(c)

September to December;

which shall be compiled in one report submitted annually to the

Commission.

(2) The donation reports drawn up by the party treasurer for

any year shall, in the case of each donor from whom any donation is

accepted by the political party or anyone on its behalf during that

year, comply with the relevant provisions of this Part so far as they

require any such donation to be recorded in a donation report.

(3) A donation shall be reported with reference to its source

(a) if it is a donation of more than seven thousand euro

(€7,000); or

(b) if, when it is added to any other benefit or benefits,

the aggregate amount exceeds seven thousand euro (€7,000),

from the same source, in one calendar year.

(4) A donation to which sub-article (3) applies shall

(a) in the case of a donation provided for in paragraph

(a) thereof, be reported in the donation report for the reporting

period in which it is accepted; or

(b) in the case of a donation provided for in paragraph

(b) thereof, be reported in the donation report, together with any

other relevant donation or donations included in the aggregate

amount of seven thousand euro (€7,000) from the same source,

in the donation report for the reporting period in which the

benefit which causes that aggregate amount to be more than

seven thousand euro (€7,000) accrues.

(5) A donation report shall also include every donation which

has been refused in accordance with this Act, during the reporting

period, and the report shall contain a statement to that effect, together

with the manner on which the donation was made, the date on which

the donation was received and the date in which the donation was

returned and any relevant details.

(6) An independent candidate shall, prepare a donation report

showing the amount received by way of donations in respect of the

period commencing from the time of the nomination of the independent

candidate for election until the election, which report shall be submitted

to the Commission.

(1) A donation report made in accordance with article

38 shall be delivered to the Commission by the treasurer of the

political party within the period of sixty days beginning with the end

of the annual reporting period to which it relates

Provided that in the case of an independent candidate, the

donation report shall be delivered by the independent candidate to the

Commission within the period of sixty days beginning from the date

of the election.

(2) Any person being a treasurer of a political party or an

independent candidate who, without reasonable excuse, fails to

comply with the requirements of sub-article (1) shall be guilty of an

offence and shall be liable to an administrative fine of not more than

twenty thousand euro (€20,000).

(3) Any person, being a treasurer of a political party or an

independent candidate, who, without reasonable excuse, delivers a

donation report to the Commission which is not in conformity with

the requirements of article 38 shall be guilty of an offence and shall

be liable to an administrative fine of ten thousand euro (€10,000).

(4) Where the First Hall, Civil Court, is satisfied, on an

application made by the Commission, that any failure to comply with

any such requirements in relation to any donation to a political party or

an independent candidate was attributable to an intention on the part of

any person to conceal the existence or true amount of the donation, the

Court may order the forfeiture in favour of the government by the

political party or independent candidate of an amount equal to the value

of the donation.

(1) A donation report under article 38 shall, when Declaration by

delivered to the Commission, be accompanied by a declaration, made treasurer

independent

by the treasurer of the political party, which complies with sub- candidate

donation report.

articles (2), (3) or (4)

Provided that in the case of an independent candidate, such

declaration shall be made by the independent candidate.

(2) In the case of a report made in accordance with the

relevant provisions of this Act, other than one making a nil return, the

declaration must state that, to the best of the treasurer’s or

independent candidate’s knowledge and belief

(a)

all the donations recorded in the donation report as

having been accepted by the political party or independent

candidate are from permissible donors; and

(b)

during the reporting period

(i) no other donations required to be

recorded in the report have been accepted by the

political party or independent candidate; and

(ii) no donation from any person or body

other than a permissible donor has been accepted

by the political party or independent candidate.

(3) In the case of a nil return, the treasurer or independent

candidate shall file a declaration together with the report which shall

state that, to the best of the treasurer’s or independent candidate’s

knowledge and belief, no donations have been received and accepted

by the political party or independent candidate, during the reporting

period and such statement is accurate.

(4) Whosoever knowingly or negligently makes any inaccurate

declaration under this article shall be liable to an administrative fine of

ten thousand euro (€10,000).

(1) Where a donation exceeding five hundred euro Acceptance of

(€500) is offered to a political party, a member of a political party or donations.

candidate, it shall be their duty to take all reasonable steps to carry

out due diligence in order to verify

(a)

the identity of the donor; and

(b)

whether the donation is a permissible donation.

(2) If the donation is offered by a donor who is not a

permissible donor or the donor has not been sufficiently identified,

after reasonable steps have been taken in accordance with sub-article

(1), the political party, the member of a political party or candidate,

shall refuse such donation.

(3) In the case where a donation has been accepted by the

political party, the member of a political party or candidate and the

donee discovers that, notwithstanding that such reasonable steps have

been taken in accordance with sub-article (1), the donor was not a

permissible donor or that the identity was false, the donee shall within

thirty (30) days return the donation to the donor or to the person

purporting to be the donor or deposit the amount of the donation in

Court.

(4) Whenever a political party, a member of a political party or

a candidate, as the case may be, does not act in conformity with the

provisions of sub-articles (1), (2) or (3), he shall be liable to an

administrative fine of five thousand euro (€5,000).

Whosoever knowingly does any act in furtherance of any

arrangement which facilitates or is likely to facilitate, whether by

means of any concealment or disguise or otherwise, the making of

donations to a political party or candidate, by any person or body

other than by a permissible donor, shall, be liable to an administrative

fine of not more than twenty thousand euro (€20,000).

The Commission shall keep a record of all donation reports

received by the political parties in accordance with this Act and such

reports shall be made accessible to the public within such time and in

such format as the Minister may establish by regulations from time to

time and shall also be posted on the website of the Commission as soon

as they are made accessible to the public.

(1) The Minister may, in agreement with the

Commission, make regulations for the better carrying out of the

provisions of this Act and, without prejudice to the generality of the

foregoing, such regulations may make provisions, not inconsistent

with the provisions of this Act

(a)

for prescribing any form or procedure for which no

express procedure is contained in this Act, and for amending

any forms that may be required under this Act;

(b) for providing for administrative fines and sanctions

in respect of any breaches of the provisions of this Act or of

regulations made thereunder;

(c)

to provide for the procedure for the imposition of

administrative fines and sanctions, for the procedure for the

exercise of rights of appeal in respect of such fines and

sanctions to the courts of civil jurisdiction and for the

conditions under which such fines and sanctions shall become

an executive title in terms of the provisions of the Code of Cap. 12.

Organization and Civil Procedure or of any other law in force

from time to time

Provided that any administrative fines or other

sanctions provided for in regulations made under this Act shall

not amount to more than fifty thousand euro (€50,000) in

respect of each offence, to more than five thousand euro

(€5,000) for each day during which the offence continues or to

the suspension of any official of a political party for a period of

more than five years;

(d) to change, notwithstanding the provisions of this

Act or of any other law, the maximum amount of permissible

campaign expenditure by candidates in any general election, in

any election of members of the European Parliament or in any

local council election;

(e)

to provide for the format in which campaign

expenditure is to be accounted for, to provide for the forms to be

used for such purpose and to issue guidelines to the Electoral

Commission concerning the methodology to be used and the

matters to be taken into consideration in the examination of

returns of election expenses by candidates at any general election,

an election of members of the European Parliament or a local

council election.

(2) Political parties and other interested persons may contest

the finding of any breach of the provisions of this Act and the

infliction of administrative fines and sanctions by the Commission in

the First Hall, Civil Court, by means of a sworn application filed

within thirty (30) days from the imposition of such fine or sanction

Provided that the provisions of the Code of Organization Cap. 12.

and Civil Procedure shall apply to such sworn application.

PART V

Performance of functions by the Commission

(1) For the purpose of the execution of its functions under

Parts III and IV the Commission shall appoint one or more auditors

who shall assist it in the execution of the said functions.

(2) Both the said auditors and the Commissioners shall be

bound by the duty of confidentiality with regard to the information

received by them by virtue of this Act which shall not have been

made available for the information of the public.

(3) The auditors referred to in sub-article (1) shall upon their

appointment take the oath of office set out in the Schedule.

PART VI

Miscellaneous

Immediately after paragraph (f) of sub-article (1) of article

55 of the Constitution there shall be added the following new

paragraph

"(ff) if the Constitutional Court decides that an elected

candidate has given information which is false in the return of

election expenses or that an elected candidate has incurred

election expenses in an amount exceeding the amount

permissible by law;".

Immediately after paragraph (c) of article 63 of the

Constitution there shall be added the following new paragraph

"(d) the seat of a Member of Parliament has become

vacant in terms of paragraph (ff) of sub-article (1) of article

55,".

In the Twelfth Schedule to the General Elections Act the

words from "FORM OF DECLARATION BY AN ELECTION

AGENT" to the words "Magistrate/Commissioner for Oaths" situated

immediately above the words "FORM OF DECLARATION BY

CANDIDATE" shall be deleted.

Article 46 of the Electoral (Polling) Ordinance included

in the Fourteenth Schedule to the General Elections Act shall be

substituted by the following new article

"46. (1) The maximum sum paid and, or expenses

incurred by or on behalf of a candidate at an election of

members of the House of Representatives, and, or by his

election agent, whether before, during, or after an election on

account of or in respect of the conduct of such election, shall not

exceed the sum of twenty thousand euro (€20,000) from every

electoral district

Provided that a candidate contesting two electoral

districts shall not be obliged to spend the total amount of

permissible campaign expenditure as aforesaid, equally between

the two districts but may apportion the said permissible

campaign expenditure between the two districts in such a

manner as the candidate deems fit

Provided further that in the computation of

campaign expenditure as aforesaid, where a candidate charges a

fee for participation in political activities or for any goods or

services made available at such activities the amount of any

such fees charged and properly accounted for shall be deducted

from the total amount of campaign expenditure.

(2) Any candidate or election agent who knowingly acts

in contravention of this article shall be guilty of an illegal

practice.".

Article 50 of the Electoral (Polling) Ordinance, included in Amendment of

the Fourteenth Schedule to the General Elections Act, shall be article

Fourteenth

amended as follows

Schedule to the

General

Elections Act.

(a)

in sub-article (1) thereof

(i)

for the words "the election agent of every candidate"

there shall be substituted the words "every candidate";

(ii) for the words "a return of the election expenses of

such person" there shall be substituted the words "a return of his

election expenses";

(iii) for the words "signed both by the candidate and by

his election agent" there shall be substituted the words "signed

by the candidate";

(iv) the words "by a duly appointed representative." shall

be substituted by the words "by a duly appointed

representative:" and immediately thereafter there shall be added

the following proviso

"Provided that in the case of candidates who

have been elected

(i) the time limit for the transmission of the

return of election expenses to the commissioners

shall be of ten days from the date when the candidate

was declared elected irrespective of the date of

publication of the official result in the Gazette;

(ii) the commissioners shall, notwithstanding

the other provisions of this Act or of any other law,

proceed and shall complete the said examination

within one month from when they receive them and

the provisions of article 52(3) shall apply in respect

of such returns and of such elected candidates.";

(b) in sub-article (2) thereof for the words "he or his election

agent" there shall be substituted the word "he";

(c) in sub-article (3) thereof the words "and his election agent"

shall be deleted; and

(d) in sub-article (4) thereof the words "or election agent"

shall be deleted.

Immediately after sub-article (2) of article 52 of the

Electoral (Polling) Ordinance, included in the Fourteenth Schedule to

the General Elections Act there shall be added the following new sub-

article

"(3) Notwithstanding but without prejudice to the

provisions of sub-articles (1) and (2) where the commissioners,

after examining the return of the election expenses of an elected

candidate in terms of article 50, determine that an elected

candidate has prima facie given information which is false in the

return of election expenses or that an elected candidate has

incurred election expenses in an amount exceeding the amount

permissible by law, the Electoral Commission shall forthwith

file an application in the Constitutional Court asking that Court

to determine the question as to whether the seat of the said

elected candidate has become vacant in terms of paragraph (ff)

of sub-article (1) of article 55 of the Constitution. The

Constitutional Court shall hear and determine such case with

urgency.".

The provisions of the European Parliament Elections

(Maximum Expenses) Regulations shall, notwithstanding the

provisions of any other law, be amended as follows by virtue of this

Act

for the words "eighteen thousand, six hundred and thirty-four

euro and ninety-nine cents (€18,634.99)." in regulation 2 of

the European Parliament Elections (Maximum Expenses)

Regulations there shall be substituted the words "fifty thousand

euro (€50,000):" and immediately thereafter there shall be

added the following proviso

"Provided further that in the computation of

campaign expenditure as aforesaid, where a candidate charges a

fee for participation in political activities or for any goods or

services made available at such activities the amount of any such

fees charged and properly accounted for shall be deducted from

the total amount of campaign expenditure.".

Regulation 97(1) of the Third Schedule to the Local Amendment of

regulation 97 of

Councils Act shall be substituted by the following

the Third

Schedule to the

Local Councils

"(1) Subject to such exception as may be allowed in

Act.

pursuance of these regulations, no sum shall be paid and no

expense shall be incurred by a candidate at an election, whether

before, during, or after an election on account of or in respect of

the conduct or management of such election in excess of five

thousand euro (€5,000)

Provided further that in the computation of campaign

expenditure as aforesaid, where a candidate charges a fee for

participation in political activities or for any goods or services

made available at such activities the amount of any such fees

charged and properly accounted for shall be deducted from the

total amount of campaign expenditure.".