Nearly $750,000 in donations intended for the New Zealand First party were allegedly wrongly spent on party campaign activities, a campaign video of leader Winston Peters and an appearance by boxer Joseph Parker at a party conference.
The trial of two men facing Serious Fraud Office (SFO) allegations of electoral donations fraud started in the High Court at Auckland today.
The duo, who have name suppression, deny the charges. They are not current members of the New Zealand First party, sitting MPs, candidates in the 2020 election or a member of staff.
SFO prosecutor Paul Wicks QC told the court nearly $750,000 was donated by 40 donors between September 2015 and February 2020.
He claims those donors thought the money was going directly to the New Zealand First party.
But, instead, he says, the two men used “fraudulent device, trick or strategum” to funnel the money elsewhere and away from the New Zealand First party, board and secretary, and into the New Zealand First Foundation.
Wicks told the court 35 donors were given the bank account for the New Zealand First Foundation and five others were given the number of an account set up by one of the accused, instead of the party’s bank account.
All donations to political parties are supposed to go through a party secretary. Donations under $15,000 do not have to be declared, but do need to be recorded, under the Electoral Act. Donations over $15,000 must be declared. However, it’s claimed the donations in question weren’t declared appropriately.
Party board members were told the New Zealand First Foundation was being established to collect funds for capital expenses, and not party campaigning.
But instead, Wicks said, it was used to pay for campaign office space for leader Winston Peters on Wellington’s Lambton Quay in the lead up to the 2017 election.
It also paid for a guest appearance fee to boxer Parker at a party event, a slick video showing Peters on the campaign trail that played at the 2017 party conference, and other campaign material.
The party secretary, board and Electoral Commission weren’t told about the funds and the duo on trial spent the money “as they saw fit”.
The trial before Justice Pheroze Jagose is set down for six weeks.
A number of other suppression orders are in place for the trial.
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