THE DOMINION POST: Half the $158,000 of taxpayers' money illegally spent in 2005 by NZ First has now gone to a trust set up for violent-crime victims by barrister Brian Henry - the "blood brother" of party leader Winston Peters.
The party has also given "thousands" of dollars from the $158,000, which was supposed to be returned to taxpayers, to the family of a severely disabled child.
Mr Peters confirmed yesterday that $78,000 was given to The Susan Couch and Crime Victims Charitable Trust, named for the survivor of RSA triple-killer William Bell.
He issued a media release after The Dominion Post questioned him on the issue. He said he had not wanted to reveal the funding but his hand had "been forced by harassment by The Dominion Post".
Mr Henry confirmed yesterday he is a trustee. He said the trust was applying for registration and Ms Couch would be its patron. She declined to comment.
Mr Henry has acted for free for Ms Couch in her long-running legal battle to sue the Corrections Department. In June, he won a landmark Supreme Court case allowing her to sue for damages.
Ms Couch was severely maimed by Bell - who was under the care of the probation service at the time - in a murderous rampage at the Mt Wellington RSA club in 2001 when he killed Bill Absolum, Mary Hobson and Wayne Johnson.
The $78,000 is part of $1.2 million tagged for spending on parliamentary purposes, but found instead by Auditor-General Kevin Brady in 2006 to have been illegally spent on winning votes by every party in Parliament except the Progressives.
The other parties caught in the scandal have all paid their share back to Parliamentary Services.
NZ First delayed repaying any money for more than a year as its lawyers reviewed Mr Brady's ruling, but in April it started handing the money out. It has till now refused to name any recipient.
However, The Dominion Post can reveal that another of the donations - a cheque for thousands of dollars - went to the family of a severely disabled child.
The child's father said yesterday that his family was not a charitable trust and someone close to the family had approached NZ First on its behalf. The family was delighted to receive the donation, he said.
Other donations are believed to have gone to registered charities.
A spokeswoman for Speaker Margaret Wilson said she would not make public the list of payments without NZ First's approval. The party had told the Speaker's office it did not want it released.
The repayment of the $158,000 has dogged NZ First. The party gave $158,000 to Starship hospital last December but Starship chairman Bryan Mogridge returned the money, saying it appeared NZ First gave it for political capital and not "in a genuine spirit of philanthropy".
In June, Mr Peters said the money had all gone to worthy causes but three days later the Cystic Fibrosis Association said it was returning its $10,000 as it was unclear whether NZ First had the right to give the money to charities.
Pay Back
Auditor-General Kevin Brady's investigation into how parties used taxpayer funds for expenses before the 2005 election found that a total of $1.2 million was misspent – mostly on election advertising. Labour was the biggest offender, with $824,524. The NZ First figure was $157,934, National $11,912, Greens $87,192, UnitedFuture $71,867, ACT $20,114 and the Maori Party $54. All, apart from NZ First, have repaid the money.
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