PC Party refunds nearly $11K in election year donations from Debly companies

New Brunswick Progressive Conservatives have refunded nearly $11,000 in election year donations made to the party by companies connected to Saint John paving contractor Majid Debly, but Elections NB says it has no plans to investigate the incident or penalize anyone involved.

The provincialPolitical Process Financing Act limits donor contributions to a single political party to $6,000 per year. Under the law, companies that are associated with one another are considered to be a single donor.

"They (the PCs) looked at it and they said, 'You know what, whatever the excess is, rather than anybody think there's anything wrong, we're going to give it back,'" said Mike Quinn,Elections NB's chief electoral officer.

Even though we had no confirmation there was an issue there, we felt the smart thing to do was to follow the spirit of the act, as well as the letter of the act, and ensure that we get it down to the $6,000 limit.- Dr. Robert Hathey, PC Party

"As far as we're concerned, in the absence of any idea that there might have been any intentional wrongdoing, that's the end of it," he said.

MajidDeblydid not return a call requesting comment on Monday.

Last summer, CBC News reported that three companies connected to Debly donated a combined $16,800 to the PC Party in 2014,including $6,000 from Debly Resources, $5,050 from Debly Enterprises and $5,750 from 632504 NB Ltd.

All three companies list the Debly Resources head office at 170 Ashburn Rd.in Saint John as their address of record on New Brunswick's corporate registry.Two of the three list Majid Debly as their sole director, while the third lists himand Kim Debly as co-directors.

The PC Party's official representative, Dr. Robert Hatheway, says the partywas unable to confirm, following the CBC report,whether the three Debly companies met the definition of being associated, but decided to return $10,800 to be careful.

"Even though we had no confirmation there was an issue there, we felt the smart thing to do was to follow the spirit of the act, as well as the letter of the act, and ensure that we get it down to the $6,000 limit," said Hatheway,a Fredericton-based orthodontist and businessman.

Debly contributions flagged before

This is not the first timeDeblycompanies have been flagged for their donations.In the 2010 election year, the same three Deblycompanies donated a combined $10,000 to the PC Party.

Elections NB asked about the amount during a review of the party's financial returns at the time, but took no action and the PC Party was allowed to keep the money that year.

DeblyEnterprisesis a paving and road construction company that does substantial business with the government. Between 2010 and 2014, it billed the province $13.4 million, mostly for roadwork.

Quinn says it's not easy to determine whether privately held companies are associated with one another and becauseall of the political parties in New Brunswick are largely run by volunteers, it is not Elections NB's practice to come down hard on those who break provincial financing rules, even when they are uncovered.

"They're not aware they've exceeded the $6,000 limit and when they become aware, when we find it, they simply give it back and that's the end of it," said Quinn.

Hatheway says the PC Party also refunded a small amount to J.D. Irving Ltd. for an over donation that was reported by CBC News last summer, but did not return any money to two companies with Nova Scotia's Bragg Group.

Oxford Frozen Foods and Peninsula Foods donated a combined $6,834 in 2014, but Hathaway saysit was determined the companies did not meet the definition of being associated.