EDMONTON -- Alberta’s chief electoral officer will look into billionaire Oilers owner Daryl Katz’s half-million-dollar donation to the Tories.

Brian Fjeldheim will investigate the $430,000 donation made by Katz, his family and company executives.

Wildrose Party Leader Danielle Smith was pleased. She received a letter from Fjeldheim on Tuesday assuring her his office had not prejudged the Katz donation issue.

“You can’t clear the air unless there is an investigation,” she said.

“If there’s wrongdoing found, he needs to prosecute. If he says there was no technical violation of the law but we need to close the loophole, we have the opportunity to do that this fall.”

At issue is whether Katz or the PC party violated the Election Finances and Contributions Disclosure Act, which says individuals can’t donate money that does not belong to them -- or just jumped through a convenient -- and legal -- loophole.

Elections Alberta told QMI Agency that Katz, his employees and his family would have been within the law to pool their resources to give the Tory party $430,000.

Liberal Leader Raj Sherman said Fjeldheim’s office must investigate.

“Democracy for sale is democracy derailed,” he said.

New legislation expected to hit the legislature this session could change things in future disputes, Smith said.