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Judge Ian Mill, in a decision released today, said there was sufficient evidence to call Mr Banks before the court.
"Access to the courts for the purposes of private prosecutions is an important safeguard against the abuses of the executive's prosecutorial discretion..." Judge Mill said.
The private prosecution has been brought by retired Wellington accountant Graham McCready, the same man who initiated assault proceedings against former Labour Cabinet minister Trevor Mallard.
Mr McCready claims Mr Banks knowingly sent in a return of electoral expenses that was false in contravention to the Local Electoral Act 2001.
The claim relates to electoral donations of $25,000 by internet mogul Kim Dotcom and $15,000 by SkyCity Casino.
- Edward Gay APNZ court reporter