Funding Controversies
Peters attracted media attention in 2008 over controversial payments for legal services and party donations. He had received $100,000 in 2006 to fund legal costs of challenging the election of Bob Clarkson to the Tauranga electorate. The money came from Owen Glenn, a wealthy New Zealand businessman and philanthropist based in Monaco. Under parliamentary rules any gift to MPs over the value of $500 must be relinquished. Peters denied knowing about the source of the money but this was not corroborated by his lawyer Brian Henry and Glenn contradicted Peters' denial.
The Vela family, prominent in the racing industry, had donated $150,000 to Peters over a four year period. The payments were made in sums of $10,000 in order to remain within rules governing political party funding.
The Dominion Post published details from New Zealand First sources that before the 2005 election $25,000 had been donated to the party from Bob Jones via the Spencer Trust. The Trust is administered by Wayne Peters, a brother of Winston Peters. Jones confirmed that he had paid the money to the Spencer Trust and was asked by Winston Peters to make the donation. Peters denies that he had asked Jones for a donation to the party. The donation was not declared to the Electoral Commission as required by law.
On 29 August 2008, Peters offered to stand down from his portfolios as Foreign Affairs and Racing Minister, pending an investigation by the Serious Fraud Office as to whether the donations from Sir Robert Jones and the Vela brothers reached the New Zealand First party as intended. On 10 September 2008, Winston Peters gave evidence to the Privileges Committee of the New Zealand Parliament in an attempt to refute evidence given by Owen Glenn. The Privileges Committee returned a report on 22 September recommending that Peters be censured for "knowingly providing false or misleading information on a return of pecuniary interests". Parliament passed a motion censuring Peters the following day. All but three of the parties in Parliament (New Zealand First, Labour, and Progressives who abstained) supported the censure.
Peters was later cleared by the Serious Fraud Office with respect to political donations, however some matters were referred back to the Electoral Commission as it was determined that, while no fraud had taken place, some electoral law matters with regard to funding declarations were not complied with. The police subsequently decided that no offence had been committed.
Peters has referred to the affair as part of the "most vicious character assassination seen in any campaign this country has ever witnessed" and unsuccessfully sued Television New Zealand for defamation.
Read more about this topic: Winston Peters