As a start, at least two skilled analysts with financial investigative experience are needed if the Commission is to be able to achieve real change. The recommendations in this report and the associated ones in the work are PwC’s aimed at building up the investigative capacity. The implementation of Commission’s the recommendations should give the Commission a greater degree of confidence in the future in assessing the level of compliance being achieved than is possible at present. Even-handedness in a political party sense, in the choice of candidates for inclusion in the compliance review program, is still an important consideration in exercising the section 316(2A) powers, but ought not to dominate the selection process. Associated entities The FAD section undertakes a process annually whereby all registered political parties are contacted and asked to list their associated entities. There is no legislative power to conduct this process and a response cannot be compelled. As indicated elsewhere in this report, this is an imprecise exercise as often political parties themselves are not fully aware of all their associated entities. In the course of conducting compliance reviews of political parties, where staff identify information that indicates a particular body may be an associated entity, it is used to determine whether there are reasonable grounds to exercise the power under section 316(3A) of the Electoral Act. The Commission has also in the past acted on complaints from individuals, media reports and information from other sources. Given the inherent difficulties in comprehensively identifying all associated entities, the FAD section should consider incorporating directed measures in its practices, geared towards identifying comprehensively all associated entities of registered political parties. While it is recognised associated entities can change between financial years, the disclosure and compliance areas could collaborate to determine an appropriate strategy to improve the way in which the section identifies associated entities. One initial suggestion might to include some form of of information received in ‘follow-up’ response to the disclosure initial request for parties to inform the Commission section’s of their associated entities, during the compliance review process. Where the circumstances warrant, section 316(3A) can then be invoked to obtain further information. Recommendation 2: A new business model to facilitate the broadening of the compliance function should be developed involving:
As a start, at least two skilled analysts with financial investigative experience are needed if the Commission is to be able to achieve real change. The recommendations in this report and the associated ones in the PwC’s work are aimed at building up the Commission’s investigative capacity. The implementation of the recommendations should give the Commission a greater degree of confidence in the future in assessing the level of compliance being achieved than is possible at present. Even-handedness in a political party sense, in the choice of candidates for inclusion in the compliance review program, is still an important consideration in exercising the section 316(2A) powers, but ought not to dominate the selection process. Associated entities The FAD section undertakes a process annually whereby all registered political parties are contacted and asked to list their associated entities. There is no legislative power to conduct this process and a response cannot be compelled. As indicated elsewhere in this report, this is an imprecise exercise as often political parties themselves are not fully aware of all their associated entities. In the course of conducting compliance reviews of political parties, where staff identify information that indicates a particular body may be an associated entity, it is used to determine whether there are reasonable grounds to exercise the power under section 316(3A) of the Electoral Act. The Commission has also in the past acted on complaints from individuals, media reports and information from other sources. Given the inherent difficulties in comprehensively identifying all associated entities, the FAD section should consider incorporating directed measures in its practices, geared towards identifying comprehensively all associated entities of registered political parties. While it is recognised associated entities can change between financial years, the disclosure and compliance areas could collaborate to determine an appropriate strategy to improve the way in which the section identifies associated entities. One initial suggestion might to include some form of ‘follow-up’ of information received in response to the disclosure section’s initial request for parties to inform the Commission of their associated entities, during the compliance review process. Where the circumstances warrant, section 316(3A) can then be invoked to obtain further information. Recommendation 2: A new business model to facilitate the broadening of the compliance function should be developed involving:
fad-report.docx