FINANCING OF POLITICAL PARTIES ACT

FINANCING OF POLITICAL PARTIES

CHAPTER 544

FINANCING OF POLITICAL PARTIES ACT

To regulate the formation, the inner structures, functioning and

financing, of political parties and their participation in elections.

1st January, 2016 *

ACT XXIV of 2015.

The short title of this Act is the Financing of Political Parties

Act.

PART I

General

(Article 45)

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.)

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

Government 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

not;

"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

p o l i t i c a l p a r t y, d i r e c t l y o r i n d i r e c t l y e x e r c i s e s e ff e c t i v e

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

*

see article 1(2) of this Act as originally promulgated, and Legal Notice 427 of

2015. FINANCING OF POLITICAL PARTIES

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

Government 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

"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 Government 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

FINANCING OF POLITICAL PARTIES

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

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

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

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) of

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

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 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

FINANCING OF POLITICAL PARTIES

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

FINANCING OF POLITICAL PARTIES

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

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

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

its 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 13; 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

FINANCING OF POLITICAL PARTIES

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

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.

FINANCING OF POLITICAL PARTIES

Where the Commission refuses an application or part

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

shall 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 10,

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.

FINANCING OF POLITICAL PARTIES

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

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

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 statement of accounts, in respect of each financial year, of

that 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

FINANCING OF POLITICAL PARTIES

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

b e g u i l t y o f a n a d m i n i s t r a t i v e o ff e n c e p u n i s h a b l e b y t h e

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

a p p o i n t e d b y t h e C o m m i s s i o n , i n c l u d i n g t h e a u d i t o r ’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

purposes of annual audits

(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

FINANCING OF POLITICAL PARTIES

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.

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(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

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

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

any statement of accounts for any financial year of the political

party has not complied with any requirements of regulations

relating to the 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

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(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, which

shall include contributions made by the members themselves.

Political parties shall not receive 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

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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

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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

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)

FINANCING OF POLITICAL PARTIES

(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).

FINANCING OF POLITICAL PARTIES

(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,

prepare a donation report showing the amount received by the

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

following periods -

(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

FINANCING OF POLITICAL PARTIES

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

delivered to the Commission, be accompanied by a declaration,

made by the treasurer of the political party, which complies with

sub-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

FINANCING OF POLITICAL PARTIES

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 (€500)

is offered to a political party, a member of a political party or

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;

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(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 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

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.

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

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