Friday, 29 August 2008

Winston Peters Affair: Peters meeting with Prime Minister today

RADIO NEW ZEALAND: Foreign Affairs Minister Winston Peters says he will present the Prime Minister with evidence on Friday that allegations against him regarding party donations are wrong.

The New Zealand First leader is also signalling he will not be offering to stand down from his ministerial post when he meets with Helen Clark in Auckland on Friday.

The Serious Fraud Office announced on Thursday it will look into allegations that donations to Mr Peters' New Zealand First party from Sir Robert Jones and the Vela family did not reach their intended destination.

Mr Peters told Morning Report on Friday he will prove the allegations against him are untrue.

"I will talk to the Prime Minister about this matter today. With the concrete evidence, she will know these allegations are vile, malevolent, malicious and wrong."

Radio New Zealand's political editor says it is a serious issue for the Labour-led Government, which has increasingly been tainted by the allegations made against Mr Peters and New Zealand First.

Miss Clark says she is approaching the issue "deliberately and carefully" and has stood down ministers in similar situations in the past. She says Mr Peters has engaged legal counsel and she will meet with him on Friday.

National Party leader John Key says Miss Clark has no choice but to stand down Mr Peters, as he cannot be New Zealand's international representative while under investigation by the SFO.

"He is our human face of New Zealand as he travels abroad to represent us, and I think it's unconscionable to have a person that's under investigation from the SFO for such serious allegations to be credibly kept on as our representative."

Parliament's privileges committee is also looking into whether Mr Peters had failed to disclose a $100,000 donation from expatriate businessman Owen Glenn.

Miss Clark says that in February Mr Peters spoke to her, denying that his party had received the donation. Mr Glenn says he made the donation.

Sir Robert Jones told Morning Report on Friday that Mr Peters has not shown him any financial records. A $25,000 donation from Sir Robert, intended for New Zealand First, was first paid to the Spencer Trust.

The Lower Hutt businessman says he has written to New Zealand First MPs Dail Jones and Doug Woolerton seeking clarification over the issue, but has not received a satisfactory response.

Sir Robert says he would be upset if the allegations his donation never reached its intended destination are proved.

Hear Winston Peters speaking to Morning Report's Sean Plunket

SFO inquiry ridiculous - Peters

At a meeting of Grey Power members near Auckland on Friday Mr Peters attacked a number of media organisations, saying the media does not know who it is dealing with and he will choke the media with facts.

He says he has written to the Serious Fraud Office and is questioning why he was not interviewed before an investigation was launched. He says he is not prepared to be intimidated.

Mr Peters says the SFO investigation is "ridiculous" and no one from the office has spoken to him about claims which he insists could be cleared up in minutes.

He says the investigation has been launched because of his past criticism of the office for failing to follow up on taxation cases. He says the SFO did not have the courtesy to tell him about its decision - he heard it on the radio.

Threshold met for investigation

SFO director Grant Liddell says investigators will, in particular, look at allegations that funds donated to the party by Sir Robert and the Vela family did not reach their intended destination.

Mr Liddell says he is satisfied the threshold has been met for beginning an investigation and that it may reveal serious and complex fraud. However, he emphasised that there may be innocent and honest explanations over the donations.

Mr Liddell says he is satisfied that the $100,000 donation from Owen Glenn is above aboard, as documentary evidence shows the money was donated for Mr Peters' legal expenses.

Earlier this week Mr Peters rejected evidence submitted to the privileges committee from Mr Glenn that he asked the businessman to donate money to help pay Mr Peters' legal costs.

A bill currently before Parliament to abolish the Serious Fraud Office has been put on hold by Miss Clark until the investigation is completed.

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