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 from 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 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 says he 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 they were donating money to NZ First, and not the foundation.
Mitchell did not respond to requests for interviews. Peters was asked if Mitchell told political donors the bank details for the foundation, but he did not respond.
The Electoral Commission launched 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 KA Law Nominees Ltd. Five other trusts with the same shareholding as Conrad Properties also made donations.
Conrad Property director Benjamin Dearlove told Stuff that the company donated lots of money to charities and causes each year, and had never really thought about where the money to political parties ended up.
The racing industry feature heavily within the donations, with at least $80,000 identified.
One investor, who Stuff has decided not to name, has connections with the mānuka honey industry, and has spoken out about the need to protect the brand’s copyright.
The Provincial Growth Fund, overseen by NZ First minister Shane Jones, has granted $5.7m granted to the Mānuka Honey Appellation Society to help protect its trademark. There is no information saying the two are linked.
Donation records include transcripts from donation transmitters that show a desire to abide by electoral law.
A letter to foundation trustee Doug Woolerton from one transmitter says: “We understand that, as the donations are above $1500, the identities of the donors are required to be disclosed to NZ First.”
The letter also wrote of the obligations of the transmitter when making political donations. “We are required by s207E of the act to disclose the identity of the donors.”
One donor, who requested not be named, said the fact their money was deposited into a separate trust entity was “moving the goalposts”.
“We made the donation on the understanding it was in accordance to electoral law and would be anonymous.”
The company no longer had records of who provided the bank account details for the donation, but said it was “someone from the party”.
The volume of donations is at odds with what the party recorded in its 2017 and 2018 returns.
In 2017 NZ First secretary Anne Martin declared that the party received only 13 donations of $5001 to $15,001, totalling $135,994, for the 2017 calendar year.
In 2018 then secretary Elizabeth Witihera reported five donations totalling $65,000 in the same range, but foundation records show 10 donations totalling $135,000.
Up to April this year, the foundation had received $80,485 in donations.
Source: Stuff
Featured Image: NZ First leader, and Deputy Prime Minister, Winston Peters. Photo / Stuff
