It is estimated that conservatively more than $250 million has been spent on several elections between the period 2010 to 2015—two local government elections, by-elections, Tobago House of Assembly election and the general election in 2015.
Elections now cost a lot of money and parties spend on traditional media advertising, social media, website development, foreign consultants and spin doctors, pollsters, the production and distribution of manifestos, political meetings, sound systems, billboards, jerseys, flyers, telemarketing, musicians, a variety of usual campaign paraphernalia and activities and giveaways like cash, food cards and cell phones to bribe voters.
Following the 2015 general election, Lorraine Rostant, who was president of the Advertising Agencies' Association at the time, quantified the advertising expenditure of political parties at $157 million on traditional media, with $112 million being spent by the United National Congress/People's Partnership alone. She said this figure did not include spending on social media, political meetings, billboards, jerseys, flyers, giveaways and telemarketing.
The questions arise: What were the sources of the millions of dollars spent in the last election and other elections over the years? Had these sources included “kickbacks” on government contracts? Were some of these contracts with foreign suppliers? Had foreign governments been involved? What about casino businesses? Had narco-traffickers and money launderers made donations? Who paid for advertisements by “Concerned Citizens?” Who were the sponsors of “benefits-in-kind” donations?
Dr Selwyn Ryan, in his publication entitled Political Party and Campaign Financing in Trinidad and Tobago, done after 2002, stated back then that "the system favours the old established parties which either have control of the State or can tap into the business community. The system privileges incumbents who can do both."
He had said, "The state-owned corporations and statutory bodies normally provide jobs, services (advertising, transport, food, muscle) to the Government party or designated individuals or firms as opposed to cash donations.
“Community leaders” who control inner-city spaces (garrisons) and other quasi-urban constituencies provide muscle and “ballot fodder” for candidates and parties, which in turn "allocate lucrative contracts to manage unemployment relief or other social programmes which have the potential to mobilise voters."
Opposition parties complain about this nexus, Ryan had said, but are powerless to do anything about it except complain.
Funds are channelled to parties in cash donations or kind (payment for ad space, for transport, food, professional help). Many firms contribute to all legitimate parties but have their preferred candidate or party.
Over the years, financing has become more concentrated..
"A few individuals and firms have emerged which have contributed a disproportionate share of campaign funds, much of which are kickbacks from publicly procured projects," Ryan said.
He claimed evidence of this could be derived from elections in 1995, 2000, 2001 and 2002.
Ryan said this has served "to exaggerate the importance of wealthy donors and their cronies, and to marginalise reform-minded parties."
The sums raised from membership fees, donations, raffles, fundraisers and contributions from members of the diaspora, when political leaders canvass them, are small relative to the amounts allegedly raised via unacceptable and illegal means.
Given the allegations of corruption usually levelled by the politicians against one another, it is not unreasonable for citizens to question where most of the millions spent in the past elections had come from.
However, citizens—young and old—are the ones who are hurt when politicians divert funds from primary health care, education, and other critical needs to satisfy their greed and quest for power.
In the Senate in 2013, Independent Senator Helen Drayton, critical of such action, had said, “the power of incumbency does not lie in the ability of a government to put state resources at the disposal of any political party or candidate during an election period or undertake projects that are designed to win public favour during an election. The power of incumbency is the power of the incumbent party as the government to use the state resources to govern transparently and to facilitate development and growth of society.”
Ryan, for his part, had argued, "The addiction of political parties and their political leaders for money to feed their personal greed and their parties needs poses very serious problems for democracy, good governance and fiscal integrity."
He said much of the money was wasted as candidates and parties assume that the more money one spends, the greater the likelihood of victory.
"This is, of course, not the case."
The cap on financing
The cap on what can be spent by general election candidates is extremely low—$US$8,000 (about TT$54,000) and is not adhered to. There is no limit to what funds parties can raise or spend and there is no obligation on the part of donors to declare what they give or on the part of parties to declare what they receive. Millions of dollars are spent with little or no accountability. Disclosure levels are extremely low, Ryan said. He was of the view that "a free for all exists" that leads to "kickbacks and corruption."
Ryan had noted that "while widespread concern has been expressed about the consequences of the present formulae for funding party needs, few serious proposals have as yet been forthcoming for changes to be made."
He felt that demands for reform are often heard but not sustained and that Trinidadians are very tolerant of errant politicians.
Ryan had lamented that monitoring by the Elections and Boundaries Commission, the body which supervises elections, and civil society groups are cosmetic.
So far, no candidate or party has been charged with an election financing offence. The law about donation and spending limits are unrelated to contemporary realities, he added.
The existing law— Representation of the People Act (RPA)
Enacted in 1961 and modified in 2000, the Representation of the People Ordinance (RPO) sets out the parameters by which political parties should operate with respect to campaign financing.
The Representation of the People Act (RPA) enacted in 1961 has some sound principles on campaign expenses by candidates.
•It states, “No expenses shall, with a view to promoting or procuring the election of a candidate at an election, be incurred by any person other than the candidate, his election agent and persons authorised in writing by the election agent for holding public meetings, organising public displays; issuing advertisements, circulars or publications or otherwise presenting to the electors the candidate or his views or the extent or nature of his backing or disparaging another.”
Clearly, the existing law prohibits anonymous donations and sponsorships.
•The RPA limits a candidate's expenditure to US$8,000 for parliamentary elections and US$4,000 for local government elections and mandates them to declare expenses within 21 days after the date of publication of the results of an election. They must pay election expenses within 35 days. Within 42 days, candidates must report their expenses to the Chief Election Officer.
•The law requires the Chief Election Officer to publish in at least one newspaper, a summary of candidates’ expenses returns within ten days of receipt. Reports are done and published.
However, according to Ryan, "Little attention is paid to the reports filed by candidates since all are agreed they do not reflect what happens on the ground.”
•Non-compliance is illegal. Failure by candidates to file reports on their spending is punishable by a fine of $1,500 and imprisonment for six months. Knowingly making a false declaration attracts a penalty of up to $3,000 and 12 months' imprisonment.
While candidates have spending limits, political parties have none and the RPA and the Constitution make no mention of the words “political parties,” presumably because individuals contest parliamentary seats and could crossover to the competition and keep their seats.
PNM manifesto promise—Campaign Finance Reform (CFR) legislation
In their 2015 election manifesto, the now ruling People's National Movement promised that campaign finance reform will be a reality before the next general election. That election is constitutionally due in 2020.
With onlty three months remaining in the year, however, the legislation is yet to be laid in the Parliament.
PNM leader Prime Minister Dr Keith Rowley recently promised that campaign finance reform (CFR) legislation would be brought to the Parliament. However, he did not confirm when this will be done and if it will take effect before the next general election.
In a radio interview on September 9, Rowley assured reforms had already been drafted and would be tabled during this Parliamentary session. Rowley's latest promise followed another in May 2016 when he claimed his Government possessed the will to propose legislation to deal with the issue before the next general election.
In August 2013, although then president Anthony Carmona encouraged elected representatives to engage the issue of CFR at the ceremonial opening of Parliament, this did not happen.
Drayton also piloted a private motion in November 2013 calling for the registration of political parties, accountability and transparency in financing and definitions of permissible and impermissible donors.
Speaking in the Senate on November 26, 2013, Drayton said, “When some campaign donors give money to political parties, it is seen as an investment, buying access to decision making."
Drayton said the purpose of legislation was to mandate transparency of political donations and the proper accounting by political parties for donated funds. The law, she said, shouldn’t deny parties the ability to raise funds privately from legitimate sources, but it should minimise the risk to government and the democratic process by limiting the opportunity for tainted monies financing campaigns, and from anonymous donors. The law should define what a donation is, who are permissible donors and who isn’t.
Speaking in the Senate, Drayton said all the foreign laws she’d studied prohibited state contractors from giving political party donations if the government and the supplier had established the contract within a specified period before an election.
“It is a reality, that when some campaign donors finance political parties, they are not simply donating, they are investing in a future stream of revenues. They’re also buying access to decision-makers,” Drayton said then.
Drayton recognised that not all donors have improper motives but contended that the democratic process of free and fair elections “comes with a price” and while the politicians see that price as millions of dollars, the real cost “is citizens’ confidence and trust…It’s not campaign spending that reduces public trust but the alleged sources of funds and corruption. Transparency is the first hurdle against corruption.”
According to Drayton, citizens should have every right to give donations to their political parties.
“If we examine the Constitution under sections 4 and 5, it recognised the right of citizens to join political parties and to express political views; the freedom of thought and expression, and the freedom of association and assembly. A donation to a political party is a tangible expression of support and association with the philosophies of the party. In other jurisdictions, citizens can go on a website and see the donations individuals and corporations had given to political parties. Here we behave as though there is something wrong with legally supporting a political party. We are afraid that someone would find out, and, of course, this has to do with the viciousness—and divisiveness of tribal politics.”
Former chairman of the Elections and Boundaries Commission (EBC) Norbert Masson, meanwhile, called for urgent attention to be paid to the matter in October 2014, after political analyst Derek Ramsamooj estimated that $330 million would be spent on the 2015 general election.
In April, Attorney General Faris Al-Rawi claimed CFR legislation would have been laid within weeks which would make it mandatory to regulate parties' financing. In July, he confirmed a draft of the legislation had been completed but admitted it required "one small clean-up at the legislative review committee” before it went to Cabinet.
It remains unclear if this process has been completed.
Efforts to contact Rowley and Al-Rawi for further confirmation were unsuccesful. They did not respond to questions sent via WhatsApp.
The first step
If the Government brings the Campaign Finance Reform (CFR) Bill in 2020, as Rowley had said, it would be the first step as an act of good faith in keeping with the PNM’s manifesto promise. In the least, his Government would have gone beyond promises and made substantial progress towards regulating campaign financing.
It’s obvious any proposed CFR legislation tabled now or closer to the elections won’t have any effect on the core purpose, which is the mandatory declaration of the sources financing starting with the 2020 election campaigns. Politics is adversarial by nature and there’s usually much contention over politically sensitive proposed laws, in fact, most bills it would seem. Consequently, there’s no certainty that a CRF Bill would sail through both houses of Parliament, become fully proclaimed and operationalised in less than a year. It isn’t likely to require a special majority.
If even the unusual happens through some intervention other than divine and both Houses approve it, the bill cannot become law until there are supporting regulations and the human, technical and other resources are put in place to administer it, unless of course the Elections and Boundaries Commission (EBC) already has the capacity, which is doubtful. The CFR may propose the establishment of another independent authority to administer the new system and give it teeth to monitor spending activities, enforce the law and prosecute offenders. Whether the EBC or another institution will have such powers is left to be seen and will demonstrate how serious the Government is about CFR.
A campaign was launched
A signature campaign was launched in 2002 by a civil society grouping in T&T which calls itself the Constitutional Reform Forum, which has CRF as one of the five-point items in its' Citizens' Agenda for Constitutional Reform as a far reaching proposal for campaign finance reform.
Ryan had said that the proposal called for:
•The mandatory public registration of all financial contributions to parties above TT$500-$1,000 within one week of receipt;
•No receipts are to be legally permitted within the two final weeks of an election campaign; significant contributors of more than $2,500-$5,000 could be excluded from receiving any state-related contracts and/or serving in any ministerial or other position that has the power to award contracts;
•Only local citizens residing abroad should make contributions but with the same disclosure requirements for nationally-based citizens;
•The State should provide party financing; to avoid abuse, such party funds should be audited independently; and the number of votes the party amassed in the previous election should influence the size of state funds.
In Ryan's report, he stated, "There is no regime of regulated slots in any media house. No authorities exist to regulate the content and extent of media coverage. Media houses have, however, established a Complaints Council to which representations can be made year round. Few complaints are referred to this body. Disclosure levels are extremely low. Demands for reform are often heard but are not sustained."
Although the Media Complaints Council (MCC) was established in the early 1990s and operated for a while, it is not currently operational. However, officials have indicated it is expected to be reactivated ahead of the upcoming election season.
Meanwhile, the Constitutional Reform Forum is also not fully functional at this time and as such, officials have said it would not be prudent to comment on related matters.
JSC Submits Recommendations for Campaign Finance Reform
A 2015 Joint Select Committee (JSC) appointed to propose a legislative framework to govern the financing of election campaigns found that under the existing provisions, current legislation did not compel political parties to identify financiers, thus lacking transparency and accountability relating to the disclosure of how public and corporate funds were being spent.
On the amount of monies spent on election campaigning, the JSC wrote, “It is clear that expenditure over the last five general elections has far exceeded this amount ($54,000) and the sources of that funding remain opaque.”
They recommended, “There must be limits on private campaign financing of political parties and candidates in order to promote fair competition during election and reduce incentives for corruption and undue influence in politics. Such limitations may take the form of a ceiling on the amount a donor may contribute to a candidate or political party, or a limit on the aggregate amount that a candidate or party may accept.”
Regarding lending monies to parties and/or candidates, the JSC said if this was permitted, legislation should provide certain rules and limitations including permissible lenders, the maximum value of loans, the maximum repayment period, and the terms of repayment including interest rates.
They indicated that public campaign financing should be considered and promoted as a means to level the playing field between electoral contestants, to promote political pluralism, and to avoid undue reliance on wealthy private donors.
The JSC also suggested that limitations on campaign expenditure must be included to ensure equality of opportunities among the various political forces and level the playing field, thus ensuring the free choice of voters is not undermined by disproportionate expenditure on behalf of any candidate or political party.
They agreed that while third parties should be free to fundraise, “It is important that some form of regulation be extended to third parties that are involved in the campaign to ensure transparency and accountability.”
On the issue of reporting, the JSC suggested parties and candidates maintain records, and report on all direct and in-kind contributions as well as campaign expenditure during campaigns.
They also indicated that disclosure of all donations and collections be made preferably on the internet and in a user-friendly format.
The JSC which was chaired by Wade Mark included members Dr Bhoe Tewarie, Camille Robionson-Regis, Colm Imbert, Clifton de Couteau, Elton Prescott, Ganga Singh, Garvin Nicholas, Helen Drayton, Marlene McDonald, Prakash Ramadhar, and Dr Roodal Moonilal.
Ryan, Drayton and other commentators have advocated for leveling of the playing field.
According to Drayton, “the law must safeguard opportunities for independent candidates and new players by promoting, as far as it is possible, a level playing field. The current system is greatly exclusionary.”
Among the issues are having objective criteria for state funding, the registration of candidates and parties, monitoring and accountability for funds. There are frameworks throughout the democratic world.
La Guerre calls for stricter monitoring to tackle corruption
Commenting on how election campaigning has evolved over the years, Prof John La Guerre said the major problem was the cost of elections and electioneering has gone up considerably over the years, adding political parties need to raise far more funds than they did in the past.
He said the law restricts them to a certain level, so the issue is to arrive at what is considered a reasonable amount of donations to a particular party.
"We need to know who the donors are and to which political party. There needs to be accountability of political parties for the donations that they receive.”
Asked how urgent this legislation was needed, La Guerre replied, “It certainly needs to be updated and all the more necessary before the two coming elections.”
He added, “There needs to be greater scrutiny of the contracts being awarded to different people. We can never eradicate corruption in political and social life. The most we can do is hope to limit it within certain parameters because corruption is something that strikes at the basics of human existence.”
Maharaj: The public must have democracy which is not bought and can't be sold
Ramesh Lawrence Maharaj, meanwhile, embarked on an initiative via the Law Commission to have a document on CFR prepared when he was attorney general.
He said last week, “I was very interested in getting the government of the day to agree on that. There was a paper prepared and discussions at the Cabinet level as well as public consultation, but I was no longer the AG after that.”
Adding his voice to the call for CFR, Maharaj said, “It is very important to have effective campaign finance laws because you have situations in which a political party can be bought by money because the money support will greatly influence and can dictate the policy of the Government.”
He claimed it was not unfair to say this has been the normal practice on both sides of the fence as he accused the sitting administrations and the Opposition of falling prey to this.
"There is a lot of money now in politics and you will see that the same people who are financiers of political parties, they get a lot of benefits after the Government gets into power.
"For the public to have democracy which is not bought and which cannot be sold, I think it is important to have very strong laws to deal with the financing of political parties.”
Asked if he believed there is enough time for the CFR legislation to be effected before next year’s general election, Maharaj said, "I think it is something that should really come at the beginning of the life of a Government because then it would be shown to the public that the Government is serious about it and it is not a political tool or propaganda.”
Maharaj claimed the present law encouraged inaccurate information to be given to the EBC as to how much money is actually spent on an election campaign.
He added, "The ordinary person in T&T would not contribute that money, so it's really the business sector and the money is not pure generosity but given on the basis that I would influence if you get into government...
Social Media and Political Influence
As the saying goes, the time and tide wait for no man, and to a great extent, social media have dug a hole in campaign finance laws everywhere. Anonymous donors and promoters, and fake websites play a destabilising role. Our legislation must address the sources of social media advertising and promotion as far as it is possible to do so. The world had witnessed how the nefarious Cambridge Analytica turned social media users’ information into political weapons. Similar reprehensible operators lurk around every election. In effect, the ‘mouse’ has eaten away chunks of flesh and muscle in the backside of campaign finance laws. Nevertheless, we need a robust law for the orderly conduct of the elections to bring as much transparency as possible into play.
State Media in Elections Campaigns
It’s no secret that in the past, incumbent political parties had abused the State media to the point where it had lost credibility as a newsworthy source of information and for that and other competitive reasons, viewership declined. It will be interesting to see whether CFR addresses the use of state resources.
What is campaign finance?
Campaign finance, also known as election finance, refers to all funds raised to promote candidates, political parties, or policy initiatives and referenda.
Political parties, charitable organisations, and political action committees are vehicles used in aggregating funds to keep campaigns alive.