The Green Party is preparing to pay hundreds of thousands of dollars in a legal battle with leader Anna M Paulo. As the federal election approaches, the already difficult financial situation has further deteriorated.
According to two party sources who were not authorized to speak publicly on the matter, at a meeting of the Federal Committee of the Green Party last night, the party’s executives stated that the party spent about $100,000 in legal affairs in July. Expenses, and another $100,000 for legal expenses in August. .
Last month, Paul started arbitrating her employment contract, and the party’s senior officials took a vote of no confidence and suspended her membership to oust her. The independent arbitrator stopped these two actions.
In response, several senior officials initiated legal challenges to Paul on behalf of the parties and questioned the arbitrator’s decision, which further increased the cost.
Costly lawsuits are tilting an already serious cash imbalance. Douglas Tingey, chairman of the Canadian Green Party Fund, said in a report earlier this month that “the current financial situation is unsustainable.”
The source confirmed these expenditures to the Canadian Broadcasting Corporation News Department, which was the first report by the Canadian media.
The funding woes prompted staff layoffs and cancellation of funding for the Paul Toronto Center Horseback Riding Movement, and it coincided with the ongoing power struggle within the split party.
According to two sources, Tingey told council members on Tuesday that if the general election is held next month, the Green Party will deposit approximately US$300,000 in the bank, compared with US$1.9 million at the beginning of the 2019 general election. For 3 million US dollars.
Tinji did not immediately respond to a request for comment.
Despite the increase in fundraising during Paul’s ten-month tenure, the cash crunch still occurred.
According to documents from the Canadian Election Bureau, the party raised approximately US$1.36 million in the first two quarters of 2021, compared to approximately US$1.2 million in the same period last year.
The party stops cash flow after layoffs
According to Tingey’s report, since the fund’s board of directors was elected in February, expenditures have exceeded revenue. For example, costs exceeded total revenue by US$105,000 in May, and more than US$103,000 in June.
He wrote: “This is due to financial decisions made in 2019 and 2020, especially the decision to retain staffing levels after the 2019 general election.”
Congressman Elizabeth May stepped down as party leader in November 2019 and appointed Joanne Roberts as her interim successor. Paul won the leadership in October 2020.
Tingey said that staff costs accounted for 70% of the Green Party’s budget, of which Paul’s salary is part of the cost.?? As a party employee who has no seat in the House of Commons, she does not receive a publicly funded salary.
According to a first report by four political parties, the Canadian News Agency filed a motion at the Federal Council meeting on June 29 to withhold the 250,000 Canadian dollars previously designated for Paul’s campaign in the Toronto Center.
The move to stop cash flow came after about half of the Green Party’s employees (including all Paul’s office workers) were laid off.