Questions raised about NZ First’s use of foundation loans

NZ First leader Winston Peters has defended his party’s use of loans from the NZ First Foundation, but refused to shed any light on how it operated or where its funds came from.

NZ First has disclosed three loans totalling $194,545 over the past three years from the foundation.

The Herald is yet to find answers to questions including why the foundation “loans” money to the party, whether the foundation’s money is from donations, and what the foundation’s purpose is.

Peters said the foundation had operated for about three elections and was set up “to assist the party”.

Where its funding came from, he said, was a question for the foundation, not him as party leader. He said he was not required to say.

“I don’t know where it comes from, and if you want me to give you the exact answer, that’s the right answer.”

Asked if that was within the spirit of electoral finance laws, Peters said: “I’m sorry sunshine, we don’t do the spirit. We do the law. And we are not going to do 50 Shades of Deceit run by you.”

The disclosures list lawyer Brian Henry and former NZ First MP Doug Woolerton as trustees.

Woolerton, now a lobbyist, said he did not know much about it.

“All political parties have varying accounts under differing names. I don’t know any more than that.”

Henry, who is also Peters’ lawyer, said it was private business and declined to comment further.

The party’s general secretary, Liz Witehira, who signed the disclosure of the 2019 loan to the Electoral Commission, said the loans had been repaid.

However, she did not know where the foundation’s money came from or why the loan arrangements were made in the first place.

The first loans had pre-dated her time as secretary, she said.

“I was not part of the organisation when that loan was arranged so I don’t have full details of the foundation.”

Peters’ office told the Herald to direct its inquiries to then acting president Jude Patterson, who told the Herald to direct its inquiries to Peters.

Only donations of more than $15,000 must be publicly disclosed and NZ First has not disclosed any since 2008.

University of Otago electoral law expert Andrew Geddis said the donation laws would allow a political party to avoid disclosing donors by using a third party to take those donations, and then loaning the party the money rather than handing it over.

It was also possible the money could be repaid over time to sit in the third party’s account to be loaned again when needed in future.

Political parties have had to disclose loans only since 2014.