Several candidates lag on financial returns after Tauranga by-election

Three months after the Tauranga city council elections, several candidates still have not filed their expenses and donation returns.

Tauranga chief returning officer Warwick Lampp said one in five candidates did not return their expense and donation report by the due date of 17 September. Candidates had been given 55 days after the election to organise their forms.

Fifteen people stood for mayor and 70 people stood for the nine councillor positions in what was the city's first election since the government sacked the former council at the end of 2020 and put in commissioners in February 2021.

As of Thursday, Lampp was still chasing five candidates.

University of Otago law professor Andrew Geddis said candidates that fail to file a return are committing an offence and could be fined $1000.

However, a candidate that files a return which shows they spent beyond the amount allowed could face up to two years in jail or a fine of $10,000.

"That is another risk, that people will just decide 'well, I know I did wrong, I know I could be up for a severe punishment if I hand in a true return, so I just won't hand one in'," he said.

RNZ began asking late mayoral candidates where their returns were on 2 October, reaching out by phone, text, and email. There have been no direct replies.

However, high-profile mayoral and council candidate Ria Hall, who failed to be elected, sent in her late return with 2 October as the date.

It shows she had the second highest spending of the mayoral candidates at $46,478.75, ahead of winner Mahé Drysdale and behind his uncle whose failed campaign spent $56,012.

Hall had the highest amount of donations, at $32,568.55. She held a fundraising concert at the beginning of her electoral campaign, which featured Anika Moa, Hollie Smith, Julia Deans, Tami Neilson, Bella Kalolo and Tali.

The concert raised $19,155 in donations through ticket sales and Hall listed all six singers as donating their goods and services for a combined nominal $1550.

If their performances were a service it would need to be listed as an expense with a reasonable market value, even if the artists did not receive a payment. However, labour offered to a campaign does not have to be accounted for.

Geddis said it was unclear whether 'special gifts' such as performances should be a 'service' or 'labour' under the law.

"They are providing their labour, they are providing their work for free, but they are also providing a service, something special that the ordinary person cannot provide."

Without a court decision as to which category such special gifts belonged to, they remained a grey area. He recommended that candidates be open and list it as a donation as Hall had done.

Geddis said it was important that all winning candidates file a return, so the public knew who funded those in positions of power. It also assured the public that successful candidates followed the rules. Their future decision-making could then be tracked as it related to who funded them.

Losing candidates did not benefit from their funding or spending. However, Geddis said all candidates needed to file returns as it helped to build trust in the system.

"If everybody puts returns out that shows that everybody's obeying the rules. That allows future candidates and future elections to be run in a way where everyone can trust them."

Lampp said it was unfortunately common for candidates to be late with their candidate expenditure and donations returns. He put it down to people leaving things to the last minute.

"I work with those candidates to complete their legal requirement in due course. As a last resort, I do refer them to police if that is necessary."

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