LONDON, ONT. -- "A lack of respect and/or understanding" of election rules by former mayoral candidate Paul Cheng warrants further investigation and possible legal action, according to city hall’s Compliance Audit Committee.

Two weeks after recommending legal action against the fourth place finisher in the 2018 election, a written decision by city hall’s Compliance Audit Committee sheds light on the extent of their concerns.

On March 5, the three-member committee received a report by auditor William Molson that concluded Cheng appears to have started campaigning months before the election’s official start date, and over-contributed $73,508.26 to his own campaign.

The written decision explains the committee’s rationale for recommending the appointment of an independent prosecutor, and why there is sufficient public interest to merit the expense.

It reads, “the Auditor’s Report identified numerous errors in the treatment and/or reporting of many items in the Financial Statement.”

In addition, Molson reported that documents related to approximately 45 per cent of the apparent campaign expenses were not provided to his investigation.

“This apparent lack of respect for and/or understanding of the record keeping and reporting requirements of the (Municipal Elections) Act is of great concern (to) the Committee.”

The committee further recommends significant consequences if Cheng is found to have contravened the Act.

“If these apparent contraventions are found to be contraventions and they relate to the Candidate’s deliberate or careless disregard for the relevant provisions of the Act, such conduct, in the Committee’s respectful view, warrants substantial consequences both to censure the Candidate and to provide a deterrent for future such conduct by him or others.”

While the audit report listed numerous apparent contraventions of the act, the committee’s decision expresses a public interest exists in two.

1. Pre-Campaign Period Expenses and Contributions

2. Candidate Financed Campaign

Regarding actions that the auditor considered to be campaign activities prior to the May 1, 2018 start of the campaign period, the committee expresses a need for greater clarity on the difference between acceptable “profile-building activities” and “pre-campaigning”.

“It would be beneficial, and serve a useful municipal purpose, to have a judicial interpretation of this part of the Act, so all candidates will have a common understanding of the electoral ground rules during the next election cycle.”

The auditor’s report identifies $98,508.26 of apparent contributions made by Cheng to his own campaign, almost four times the $25,000 limit.

The committee says it understands the intent of this limit “is to create a level playing field in which wealthy candidates cannot simply buy themselves a self-financed campaign.”

The committee recommends if the court decides there is determined to be a contravention in the order of magnitude determined by the audit, “there should be severe censure of the Candidate for his largely self financed campaign.”

At the committee meeting on March 5, Cheng spoke only briefly, reading a campaign-like statement challenging London to focus on the pandemic.

“Get the 400,000 people (of London) vaccinated. Then if you want to prosecute me over $5 or $25,000... fine. I’m here,” he stated.

The committee has authorized the appointment of an independent prosecutor to commence legal proceedings against Cheng.

If the prosecutor decides there is a reasonable prospect of conviction, charges under the Municipal Elections Act would be laid, and pre-trial procedures commence.