Conservative Party board members were told Colin Craig allegedly sent a message containing the phrase ``magic hands down your panties'' to his former press secretary.
The second week of the defamation trial against former Conservative Party leader Craig has resumed in the High Court at Auckland this morning.
The jury, before Justice Sarah Katz, is tasked with deciding if Craig defamed Taxpayer's Union chief executive Jordan Williams at a press conference and in a pamphlet he produced and distributed.
Williams is a friend of Craig's former press secretary Rachel MacGregor. She confided in him about alleged inappropriate behaviour towards her by Craig.
After viewing the letters Williams believed he had a ``moral'' duty to warn other members of the Conservative Party about Craig's actions. He met with several members soon after and disclosed what he knew.
When Craig found out, he held a press conference at which he inferred Williams lied about him, and that he would be taking legal action against them for defamation.
At the same time, Craig released a leaflet titled Dirty Politics and Hidden Agendas, in which he named Williams and the other ``culprits'' spreading ``false allegations'' about him and taking part in a plot to damage his political career.
Williams strongly denied any wrongdoing and has launched his own civil action against Craig.
Last week, the jury was read letters and text messages sent to MacGregor by Craig, and was told how he allegedly tried to kiss her.
Today, the first witness to be called was former Conservative Party interim chairman John Stringer.
Stringer told the jury how he was told by Williams that Craig allegedly sent a message containing the phrase ``magic hands down your panties''.
He was also told about a ``dossier'' of allegedly ``sexually explicit texts'', he said.
The information disclosed to him by Williams, teamed with media coverage around MacGregor's resignation two days before the 2014 general election, led to action by the party board, he said.
Stringer said Craig, when confronted, dispelled rumours about inappropriate behaviour with MacGregor.
Craig told board members that MacGregor was ``obsessed'' with him.
He also told them that her older brother, David MacGregor, a friend of Stringer, had confronted him about an alleged incident.
``I don't recall the specifics but I do remember there being conflicted stories about that happened at the apartment above the Conservative Party office.''
There was speak of ``Mr Craig throwing Rachel down on the bed'' and ``dishevelled sheets''.
He said Craig told the board the rumours were false and MacGregor's resignation ``was just a matter of employment issues and pay rates''.
``Mr Craig also said that any allegations of moral impunity were `scurrilous' and `false'.''
The Conservative Party put a ``chaperone system'' in place to dispel rumours about an inappropriate relationship between Craig and MacGregor.
Stringer quoted a biblical reference to explain the board wanted to avoid ``even the appearance of evil''.
Speculation in the media and party about Craig and MacGregor's professional relationship appearing ``domestic'' was a large concern, he said.
``The media openly speculating on things that we were uncomfortable with.
``We put in place a chaperoning system between Ms MacGregor and Mr Craig that's how concerned we were about whatever their relationship was.''
The trial continues.
