The donation scandal engulfing Act leader John Banks spread last night as it emerged he lobbied personal friend and Government minister Maurice Williamson over internet tycoon and donor Kim Dotcom.
Mr Williamson, the Minister of Land Information, last night admitted Mr Banks had lobbied him over a property purchase in Coatesville, just north of Auckland, Dotcom wanted to make.
The admission came four days after questions were first lodged.
Yesterday, Mr Williamson's office maintained at 5pm that it had "no knowledge'' of whether the minister and Mr Banks had discussed Dotcom's application.
But at 7.22pm, Mr Williamson said: "John Banks did call me to advocate on behalf of Kim Dotcom with regard to the OIO [Overseas Investment Office] application on the Coatesville property. Mr Banks and I have been good friends for years. It is a matter of record that the ministers considered the application, but declined it.''
Dotcom told the Herald Mr Banks referred to being "very close'' to Williamson, whose approval was necessary before he could buy the $30 million Coatesville mansion he rents.
He said the comment was made by Mr Banks in reference to his application to buy the mansion.
"He said he knows lots of people from when he was a minister. He knows Williamson ... They are very close.''
Dotcom said he believed Mr Banks spoke positively to Mr Williamson about his application.
Overseas Investment Office officials left the decision on the application to ministers, and Mr Williamson approved it in April last year.
But it was eventually declined after it was rejected by Associate Finance Minister Simon Power.
Three months after approving it, Mr Williamson changed his mind and joined Mr Power in rejecting it.
The admission by Mr Williamson will place added pressure on Mr Banks, who yesterday had the support of Prime Minister John Key.
Mr Key said his staff had been told by Mr Banks that the law had been followed, "which is good enough for me''.
Asked if he was happy for ministers to act unethically as long as they complied with the law, Mr Key said: "There is quite a wide definition of ethics ... The test I have to apply is the law.''
He said reports Mr Banks asked Dotcom to split the $50,000 into two payments "wouldn't necessarily mean someone's in breach of the Local Government Act''.
Mr Banks yesterday continued to refuse to be interviewed, but issued a statement in which he said he was unaware Dotcom had donated to his campaign and denied ringing the internet magnate to thank him.
"I could not have, as any such contribution was anonymous.''
But he said he had spoken to Dotcom on "other matters''.
In an interview in January, Mr Banks said those other matters included advice on Dotcom's OIO application and residency.
He said the advice was "just the process'', and their conversation was "in total of 15 minutes, maybe 20 minutes''.
It has since emerged the pair met at least four times.
In April 2010, they had a two-hour meeting, after which Dotcom emailed Mr Banks stating: "Thank you for your call yesterday and your kind offer to help me become a resident.''
The pair met again in June over lunch for two hours at the mansion with their wives.
It was at this meeting, Dotcom said, that the request for election campaign funding was made. He said the discussion about splitting the donation happened while their wives and his bodyguard and butler were present.
The third meeting was on New Year's Eve at Princes Wharf when Dotcom put on a $500,000 fireworks display.
Weeks later, Mr Banks was at Dotcom's birthday party, during which he proposed a toast to his host.
The two cheques that made up the $50,000 donation emerged yesterday. They were recorded in Mr Banks' electoral return among 45 other anonymous donations. Of those, five were for $25,000.
Three donations are now part of a police inquiry into payments to Mr Banks' mayoral campaign. They are the two Dotcom donations of $25,000 and a $15,000 payment from SkyCity, also listed as anonymous.
The cheques signed by Dotcom have sequential numbers showing they were written one after the other from the same ANZ chequebook.
They are dated June 9, 2010, and bank records show they were cleared from Dotcom's account on June 14, 2010.
Dotcom said: "It doesn't make much sense why anyone would write cheques that way unless they were asked to.''
STRAIGHT QUERIES,
QUEER ANSWERS
Late last week, RadioLive rang John Banks to see how well he knew Kim Dotcom - and his response was extraordinary.
Banks: "Are you saying that Dotcom's at SkyCity?''
RadioLive: "No, no - that you had donations to your mayoral campaign from SkyCity and two from Kim Dotcom.''
Banks: "Oh, look, look, look, look, look, look, look [pause] this matter. I don't know if you're caught up with it ... I have never been to SkyCity with Dotcom.''
RadioLive: "And what about donations to your campaign? Did you have a relationship with Kim Dotcom?''
Banks: "What's your relationship? This is offensive! He's a married man, what are you talking about?''
RadioLive: "[Laughs] Not a relationship like that.''
Banks: "No, look I don't want to go down ... I've had no relationship with Dotcom - he's got a wife.''
RadioLive: "Not like that, a business relationship.''
Banks: [hangs up]
RadioLive: [calls back]
Banks: "Hello?''
RadioLive: "Hi, I was just wanting to clear up something, I wasn't meaning to ...''
Banks: "Just a minute, just a minute - I have never had a relationship with Dotcom, he is a married man. And I have not been to the SkyCity with the guy. So thanks for your time, thanks for your call.''
- Additional reporting: Claire Trevett
