Ward 17 (Davenport) Councillor Cesar Palacio won't be reprimanded despite having violated Toronto Council's code of conduct, for renting a community office and campaign office from a company of which he is a director.
Toronto integrity commissioner David Mullan reported to Toronto Council last week that while Palacio had violated the code in renting the storefront at 1697 St. Clair Avenue West for $400 a month from a numbered company operating on behalf of the Police Community Partnership, the violation was more an "error in judgment," because Palacio hadn't at the time been aware of it being a violation, and because he had not directly benefited from the transaction.
Toronto Council voted unanimously to support Mullan's recommendation - but not before some councillors raised the question about whether Palacio had in fact benefited by spending city money to rent space in a building on whose mortgage Palacio acted as guarantor.
Ward 14 (Parkdale-High Park) Councillor Gord Perks asked Mullan whether he was aware that many of the properties along that stretch of St. Clair were vacant, and when Mullan answered yes, he asked: "So Councillor Palacio is on the hook if the mortgage was not paid?"
"Yes," answered Mullan.
"So the councillor was receiving city dollars to pay a mortgage that he was on the hook for?" asked Perks, and Mullan agreed that was so.
But Mullan maintained because the benefit was not directly paid to Palacio, it was not a serious breach.
Councillors who spoke on the matter pointed out that the report was based on a complaint from supporters of another candidate in the 2006 election, where the matter was first raised, and characterized the questioning as a witch hunt.
"I apologize to Councillor Palacio and his family for having to go through this," said Ward 7 (York West) Councillor Giorgio Mammoliti. "Our system is wrong to have allowed this to happen. We've adopted a system of witch-hunting is what we've adopted."
After the vote, Palacio said he was "honoured and humbled by the unanimous decision of city council. I really feel vindicated and exonerated because I saw justice. But we also heard the line of questioning and the intention and perhaps the purpose of some members of council who were trying to tamper with the integrity commissioner's decision for political reasons. And that turned council into a kangaroo court."