Electoral Commission clears NZ First

New Zealand First leader Winston Peters says he always knew the Electoral Commission would clear his party secretary over a failure to declare donations.

The commission last night released its decision saying while NZ First did not declare donations in 2005, 2006 and 2007 it was not asking for a prosecution.

"No offence committed by the Party Secretary (Anne Martin) in respect of the 2007 annual return," it said.

"New Zealand First is required to file amended returns and accompanying auditor's reports for the 2005 and 2006 years.

"The determination is in respect of the actions of the Party Secretary for New Zealand First only, as considered under Part 6 of the Electoral Act." It did not release full findings, to avoid prejudicing the police investigation.

"That's two down and the police to go, and the police have got no where to look either because it was always a matter to do with electoral law," Mr Peters told Radio New Zealand this morning.

"We always knew this would be the case." Mr Peters said the party had sought commission advice about whether it was required to declare the money or not, and it could not say.

The party followed legal advice that it did not have to declare donations made through its Spencer Trust.

"There was no evil forethought or design to keep it secret." Mr Peters said the party had a change of administration which complicated matters.

"It was not the amateur nature of the organisation at all. It was that some things that were clear to former administrators were not clear to the new ones.

"In short, as we found from this 2007 declaration, that the Electoral Commission has actually agreed with us, it was not clear." The party got an $80,000 donation from its Spencer Trust in 2007. It was the only year the commission could act on as the period for prosecutions expired on the other years.

The Serious Fraud Office (SFO) this month cleared NZ First after investigating two donations to the party.

It found the money was used for the purpose the donors -- Sir Robert Jones and the Vela family -- intended.

Mr Peters was stood down from his foreign affairs and other portfolios while the SFO inquiry was carried out, and Prime Minister Helen Clark took over.

The police investigation is ongoing.

Mr Peters refused to say whether New Zealand First would keep using the Spencer Trust.

ACT repeatedly attacked NZ First over its alleged failure to declare cash and donations, and its leader Rodney Hide laid a police complaint relating to the 2007 return.

However, it was Hide's party that was found to be in breach of the law.

The commission said ACT got free office space from Sir Robert for a number of years until 2005, at a value of approximately $20,000 per annum.

It was a party donation and was not included in ACT New Zealand's annual returns of donations for the relevant years, the decision said.

It said ACT must file amended returns.

"Provision of free office space for the purposes of an out of Parliament office was a party donation for the purposes of section 214F of the Electoral Act 1993." There would be no prosecution because the period in which that could happen had expired.

Mr Peters had highlighted the rent issue.

"His party's in the gun now as it always should have been. It was a really disgraceful exercise in New Zealand politics," Mr Peters said.

He criticised Mr Hide for making his allegations, which put Mrs Martin under a pressure at a time when she had just lost her husband and her brother had also died.

He said Mrs Martin was stoic and courageous throughout.

Lastly the commission ruled a Tui billboard saying "When Winston Peters says no, he means no -- Yeah right" was not an election advertisement.