Closed and opaque

December 6, 2019

Didn’t Jacinda Ardern promise to lead an open and transparent government?

That promise has been broken again:

Labour’s decision today to block the request of former New Zealand First President Lester Gray and former Treasurer Colin Forster is the Government covering up serious allegations of financial impropriety of its coalition partner New Zealand First, National’s Electoral Law spokesperson Dr Nick Smith says.

“There was no good reason for blocking these senior New Zealand First officials from being heard at the Justice Select Committee on electoral law. They sought the hearing because they had serious concerns about the failure to disclose major donations, unauthorised campaign expenditure and concerns over the New Zealand First Foundation.

No-one with any knowledge of running a political party and election campaign could believe that a party could do that on membership subs, members’ fund raising and donations under the disclosable amount alone.

If the way the NZ First Foundation has been used to funnel donations is within the law then the law must change.

“They were fearful of speaking publically with threats of legal action and the Justice Committee provided a safe place for them to disclose their knowledge of what has occurred.

“Labour is part of a cover up in denying the Committee and New Zealand the opportunity to hear their concerns.

“These issues in New Zealand First go to the heart of our democracy and the result of Election 2017. New Zealanders have a right to know who were the financial backers of the Party that was decisive in the 2017 Election outcome.

We also have a right to see if any dots can be joined between those backers and NZ First policy.

“New Zealand First was the only Party that did not disclose the source of any donations and it had 10 times the value of anonymous donations of any other Party at Election 2017. It has also been revealed since that $500,000 was secretly contributed to the New Zealand First Foundation.

“Labour’s denial to allow senior New Zealand First officials to submit to the Justice Select Committee makes a joke of the Government’s commitment to be the most open and transparent Government ever.

“There could be nothing more important than the transparency of the source of funding for the Party that ultimately determined the Government.

“This is deja vu of the New Zealand First funding scandal that led to the defeat of the last Labour Government. Labour has learnt nothing and is continuing to cover for New Zealand First’s shady dealings.”

The failure to deliver open and transparent government joins a growing list of this administration’s record of rhetoric unmatched by action.

This government is closed and opaque and its MPs’ veto of  NZ First’s former office holders to be heard is another brick in the wall between its promises and delivery.


Holes in electoral law?

November 19, 2019

At last  New Zealand First’s funding is being exposed to sunlight:

Almost half a million dollars in political donations appear to have been hidden inside a secret slush fund controlled by a coterie of Deputy Prime Minister Winston Peters’ trusted advisers.

The secretive New Zealand First Foundation collected donations from wealthy donors and used the money to finance election campaigns, pay for an MP’s legal advice, advertising, fund a $5000 day at the Wellington races and even pay an IRD bill.

A New Zealand First spokesperson said on Monday the foundation had been in existence across several election cycles. “There has never been any suggestion that it is anything other than lawful,” she said.

Records uncovered in a Stuff investigation show a complex web that appears to be designed to hide donations to the NZ First Party via The New Zealand First Foundation. . . 

I was a regional and electorate chair for the National Party and am still a party member.

The necessity of  adherence to electoral law has always been drummed in at every level of the party, especially for fundraising and financial reporting.

No-one with any understanding of what’s involved could believe that a party like New Zealand First could function and run itself and successive election campaigns on lots and lots of small donations and few if any over the threshold for declaring who’s given how much.

Former NZ First treasurer Colin Forster claimed he was moved out of the party after questioning the financial records.

“When Winston wanted to hire a bus for the Northland by-election we were on the bones of our arse,” he said.

“We had about $20 in the bank and I would not let the party take out a loan. We were told not to worry about it and suddenly there was money.

“I could not understand where the money came from.”

Stuff has seen records for the foundation that suggest there have been breaches of the Electoral Act and that the foundation is being used to obscure political donations to the NZ First Party.

Donors to the foundation are primary industry leaders, wealthy investors and multi-millionaires. . .

Every other party in parliament, and most outside it, get donations like this, why would NZ First be any different?

Invoices paid by the foundation seem to show funds were being used for, what appear to be, party expenses.

Among other things, the foundation spent $9364 hiring boxer Joseph Parker to speak at the 2017 NZ First conference, $10,643 on travel reimbursement for MP Clayton Mitchell, $12,000 on legal advice from Russell McVeagh lawyers for Mitchell, and $5000 for a day at Wellington Cup Day races.

It also paid for the party’s Nation Builder website and donations platform, a cost of about $10,000 a month. . . 

Until now it’s been reported that the Foundation only made loans to the party. These payments don’t look like loans.

Efforts have been made by party officials to find out details of the foundation and some say they were removed from the party when they challenged Peters or Henry about finances. There is now a conga line of NZ First Party officials who say they have been forced out of the party. . . 

The party is known as Winston First because it looks like he has total control of it.

But absolute rule works only as long as there is absolute loyalty, or submission.

It looks like there are now enough people who are no longer loyal, or submitting, and they are talking.

The only surprise in this is that it has taken so long for the party’s funding to be questioned like this and that points to holes in electoral law or its administration.


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