As New Zealand First leader Winston Peters reappears before the privileges committee this morning to answer questions relating to a $100,000 donation from expatriate billionaire Owen Glenn, Prime Minister Helen Clark has raised concerns about the politicisation of the process.
Told by the media Mr Glenn had written a further letter to the committee - following his earlier correspondence in which he said Mr Peters solicited and thanked him for the donation, which Mr Peters subsequently denied - Miss Clark said: "There are clearly people on the privileges committee with an agenda who clearly leak information out beyond committee walls."
If someone on the committee leaked the information, it was an abuse of confidence and it reinforced concerns about politicisation of process, she said.
Committee chairman Simon Power said he was doing his job to "ensure a thorough, transparent and credible process that is in line with the standing orders".
Mr Peters is also under investigation by the Serious Fraud Office which is investigating donations to New Zealand First.
The SFO is investigating how donations from Sir Robert Jones and the Vela family were spent.
The SFO was given the Spencer Trust's financial records.
The Spencer Trust is NZ First's only trust and holds its money.
The SFO is under pressure to complete the investigation before the election, which must be held before November 15.
An accountant and auditor for NZ First, Nick Kosoof, said a $25,000 donation from Sir Robert was not disclosed because of an administrative error.
Neither he, nor the party, explained where the other half of the $50,000 came from or why it was not declared.
Donations above $10,000 have to be declared, but because the breach is outside a six-month statute of limitations it cannot be prosecuted.
Party president at the time, Dail Jones, said yesterday the first time he had heard of the mistake, and therefore the $50,000 payment, was on Tuesday when he read it in a newspaper.
When he took over the presidency of the party in October 2005, an auditor was paid a "substantial sum" to go through all the accounts and he had failed to point out the payment from the Spencer Trust.
Mr Jones said he had been told the auditor had seen the donation, "but then forgot about it".
"I accept there was a mistake. I am the president - I take the blame."
Mr Jones said he was writing to the Electoral Commission to apologise for what happened.
MPs on the committee contacted by the Otago Daily Times would not comment or speculate on the likely way the committee would proceed today.
Three hours had been set aside, but the committee was in charge of its agenda.
Mr Peters has been stood down as Minister of Foreign Affairs, Racing and Associate Senior Citizens, but is still entitled to a ministerial salary, residence and Crown car.
Beyond that Miss Clark appears to be standing by Mr Peters.
She accepted that NZ First made a mistake when it apparently broke electoral law.
She was not considering sacking Mr Peters over the legal point.
"No, because this has happened at the level of party administration.
"I wouldn't expect to be held accountable for some sort of mistake at the Labour Party head office."
Miss Clark said she was taking NZ First's explanation at face value.
It was a small party with a "rather amateur organisation".
