The Serious Fraud Office stated today that it did not find any evidence of criminal conduct from Dalziel and has subsequently closed its investigation into the matter.
Police referred a complaint about Dalziel's donations to the agency in February after she failed to properly identify donors who made significant contributions to her campaign.
The Local Electoral Act requires candidates to disclose the identities of donors who contribute more than $1500 to their campaign. Six of Dalziel’s donors made contributions above $1500, with one as much as $17,850.
SFO director Julie Read said while there was no evidence of criminal conduct in this instance, further guidance was still required around electoral donations in the future.
“It is in the public interest that allegations of electoral funding fraud be treated seriously and given due attention. In a representative democracy, voters must have confidence that those who make electoral donations do not unduly influence government decisions," she said.
"While there was no evidence of corrupt conduct in this matter, the SFO believes further guidance is required at the local government level relating to donations made at fundraising auctions and how they are publicly disclosed.”
Said Dalziel: “I welcome the announcement by the SFO that it has closed its investigations into my electoral returns with its finding of no evidence of any criminal conduct.
“I was always confident in my case however they are required to investigate any complaint they receive thoroughly and they have done so. I am grateful they were able to clear the air before what will be a difficult Christmas for me.
“I agree with the SFO that further guidance is required relating to donations made at fundraising auctions and how they are publicly disclosed, and I would support a law change to provide for that."
Mayoral rival John Minto, who made the initial complaint about Dalziel's election donation declaration to police, said the decision not to prosecute her was a "disappointing outcome."
Dalziel received a total of $46,600 in donations towards her successful re-election campaign.
The majority of the money ($40,100) was donated at a fundraising dinner and auction which was hosted by late husband Rob Davidson. He donated the items which consisted “of mainly bottles of wine and Chinese Baijiu.”
A further $6500 was donated by Countrywide Property, a company owned by Christchurch developer Richard Diver.
Wei Min Lu spent $17,850 at the auction, Yong Chen spent $3920, Zhe Cheng Tan spent $2800, Jiang Ping Wang spent $2350, Grandland Investment Ltd spent $2950 and Yang Xia Wu spent $1750.
Details around the six donors were not named in the mayor’s original electoral donation declaration but were later released after Dalziel came under criticism from Minto.
At the time, Dalziel said the omission of the donors from the declaration came after taking advice from Davidson that donors only need to be identified when they pay more than $1500 above the market value of an item.
“I am sorry about that, but the declaration was submitted based on what Rob thought was required and I took his advice, he believed that was the case, that was the advice he had given me,” she said.
“I have since taken my own independent look at it and I do regret not doing this earlier and it would not have been an issue. If I had informed myself instead of relying on someone else’s advice perhaps it would have been different.”
