High stakes: How the donations worked
It reads like something from a Dick Francis thriller: wealthy racing figures and a political slush fund. Matt Shand reports on the donors behind the NZ First Foundation.
Deputy Prime Minister and NZ First leader Winston Peters claims to be the leader who stands up to corruption and fights for the little man, but donations to the foundation show he is backed by wealthy investors, horse racing figures, food magnates, and property juggernauts.
Quite aside form the legal question over the relationship between the foundation and the party is the question of how Peters presents himself: the honest broker between two old sides of politics.
One of the crucial questions swirling around the NZ First donations saga revolves around who exactly knew what, and the relationship between the party and the foundation. Peters says the foundation is totally separate from the party, and that all questions about it are a matter for the party.
‘‘I look after the political wing of the NZ First party, that’s an administrative matter,’’ Peters said in Parliament on Tuesday.
‘‘I’m in charge of the political body of NZ First. As for the administrative body, for 27 years we’ve complied with the electoral law in this country’’.
But Stuff reveals today that Tauranga-based list MP Clayton Mitchell acted as one of the bagmen for the foundation – which appears to have operated as a political slush fund – financing NZ First’s party operations.
Many sources, on and off the record, have confirmed that Mitchell solicited donations for the party, but would often give out the NZ First Foundation’s bank account details.
One donor to the foundation said ‘‘The man from Tauranga
. . . Clayton Mitchell’’ was the MP who told him how to donate to the fund.
It can also be revealed that at least some donors spoken to by Stuff were not aware that donations were going to foundation and not the political party.
Waikato Stud owner Garry Chittick donated $5000 and, when contacted by Stuff, said: ‘‘I wish I could get it back.’’
Chittick said he was hounded by foundation trustee Doug Woolerton for donations and he eventually agreed.
‘‘I believed it was going to help the party, not go into some foundation,’’ he said. Chittick said Peters was an advocate for racing and felt the donation would support his industry.
Chittick was not happy about NZ First going into a coalition government with Labour.
‘‘Woolerton said, ‘Has he [Peters] ever let you down?’ ’’ Chittick said.
‘‘Well, he has let me down. In a big way. I believe if a party gets 46 per cent of the public vote you had a duty to side with them.’’
The revelation that Mitchell was one of the bagmen for the NZ First Foundation could derail Peters’ assertion that the party and foundation, which received more than $500,000 worth of donations, are not connected.
Donations to the foundation are under the $15,000 threshold required for the party to declare them, but several donors said they believed they understood were donating money to NZ First, and not the foundation.
Mitchell did not respond to requests for interviews. Peters was asked if Mitchell told donors the bank details for the foundation, but he did not respond.
The Electoral Commission began an investigation after a complaint was laid following a Stuff article breaking news of the foundation’s activities. The commission is seeking more information about the donations.
But there were other large donations, many of which are from companies and individuals who work in industries that have benefited from the $3 billion Provincial Growth Fund. Stuff is not suggesting any wrongdoing on the part of the donors, and it may be that those industries would have benefited regardless.
But while parties are not required to disclose donor identities for donations of less than $15,001, political party secretaries are required to know the identity of those who give more than $1500. It is the responsibility of the party, and party secretary, to declare such donations publicly.
The NZ First party president and secretary both declined to comment.
Between April 23, 2017, and April 5, 2019, there were 41 donations of more than $5000 to the NZ First Foundation, about which party officials were kept in the dark.
The largest series of donations occurs from Conrad Properties Ltd or companies and trusts connected to that company. The company donated $27,500 to the foundation in 2017 and 2018, as well as $15,000 in 2019 to date.
Conrad Properties has a single, 100 per cent shareholder in the name of K.A Law Nominees Ltd. Five other trusts with the same shareholding as Conrad Properties also made donations.
Conrad Properties director Benjamin Dearlove told Stuff that the company donated lots of money to charities and causes