What types of sanctions can be imposed for campaign finance infractions?

OSCE/ODIHR Election Observation MissionFinal Report Presidential Election Mongolia (2013-06-26)

IX.CAMPAIGN FINANCE

The PELprovides for private donations as the only financial sources for parties andcandidates. On 22 February 2013, the GEC adopted Resolution Nr. 4, which setthe maximum election expenditure at MNT 5.1 billion (some EUR 2.7 million atthe time of the campaign) per party and MNT 3.1 billion (some EUR 1.6 million)per candidate.43 According to the PEL, campaign donations can be made only inthe election year and are limited to 40 minimum monthly salaries, an equivalentof MNT 10 million (some EUR 5,300), per individual and five time that per legalentity. The law also prohibits donations from a number of sources. Violationsare punishable by fines that are rather minor compared to possible excessdonations, but any amount above the respective donation limit is to beconfiscated. As political parties were to provide final reports 30 days afterthe election, no financial information was made public by the candidates duringthe election period. Reporting requirements set by the PEL include full name,address and amount of donation made by a citizen or a legal entity, with theGEC mandated to receive, review, and publish these reports within 45 days afterthe election.

The GEC, however, informed the OSCE/ODIHR EOM that it sees itsrole only as an intermediary in this process and does not audit the reports,although the PEL empowers the GEC to request a state audit of a party’s orcandidate’s finances and expenditures when the GEC deems it necessary. Therewas only one person in the GEC assigned to oversee political financing, inaddition to accounting for expenses by all election commissions. Takentogether, these factors may undermine the effectiveness of the controlmechanisms introduced by the PEL and can potentially decrease the public trustin the way electoral campaigns are financed, as highlighted by a number ofOSCE/ODIHR EOM interlocutors from civil society.

In order toenhance transparency and public confidence in the integrity of the campaignfinance, the GEC should publish campaign finance regulations in a timely mannerand effectively enforce operable and transparent campaign finance oversightprocedures, including in the pre-election period.