Generosity comes at a steep price

OUR DONATIONS regime was created after the 2005 election when almost every party was ordered to repay misspent funds.

In that year, when the AuditorGeneral found Labour unlawfully spent $768,000, some of the party’s MPs said legislation may be passed to retrospectively make the spending legal. Eventually the party arranged a ‘‘whip-around’’ to help raise the required funds.

National’s biggest controversy that year was its links to the Exclusive Brethren church, and leader Don Brash was forced to admit church leaders had told him of their attack ads against the Greens.

That election prompted the 2007 Electoral Finance Act, but did not prevent controversy, with Winston Peters forced to stand down as Foreign Minister in 2008 over denials that the NZ First party had received a $100,000 donation from Owen Glenn.

Donations have been back the headlines this election.

Justice Minister Judith Collins attended a private dinner with a Chinese customs official and the founder of Oravida, a milk export company on which her husband is a director.

The Government has given Oravida cash to help it to overcome border issues after the Fonterra botulism debacle. Founder Stone Shi played golf with John Key and the company donated $30,000 to the National Party, on top of another $56,000 donation made in 2011.

In March it emerged that Chinese businessman Donghua Liu donated $ 22,000 to the National Party not long after he was granted citizenship. It later emerged that Liu was facing domestic violence charges, and that minister Maurice Williamson had telephoned police to check whether the case was on ‘‘solid ground’’. Williamson was forced to resign.

Shane Jones was stood down from his Opposition portfolios, while the Auditor- General investigated his handling of an immigration application from donor William Yan, otherwise known as Yang Liu or Bill Liu.

Yesterday the NZ Herald reported police raided Liu’s luxury Auckland penthouse and seized assets including the $2 million Metropolis apartment and a Mercedes-Benz.

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