Former NZ First MP gives evidence in donations fraud trial

Former NZ  First MP Clayton Mitchell.

A former NZ First MP – and key party fundraiser – has given evidence in the Auckland High Court on Monday.

Clayton Mitchell, a MP from 2014 to 2020, was quizzed by the Serious Fraud Office’s John Dickson about his involvement in procuring donations for the party.

The second week of the trial against two men accused of obtaining funds by deception also heard fishing company Talley’s was a key fundraiser for the party. (Source: 1News)

The Serious Fraud Office has charged two men with obtaining by deception in relation to $750,000 in donations made to two different bank accounts associated with the New Zealand First party, but not declared to the Electoral Commission, as required under law.

The deposits happened between August 2015 and March 2020.

It’s the second week of an expected six-week trial in front of before Justice Pheroze Jagose at the High Court in Auckland.

The duo have name suppression and are not current party members, sitting MPs or staff.

Most of the money was deposited into an ASB account held by the NZ First Foundation. Donors thought their donations were going directly to the New Zealand First party.

Mitchell was heavily involved in fundraising and approaching people for donations.

Letters and emails were shown to the court today, in which Mitchell gave the bank account number for the New Zealand First Foundation, rather than the party itself.

That included a pro forma letter sent out to prospective donors ahead of the 2017 election which said: "This is one of the most important elections that this country has ever faced."

"…support from people like you is essential to making the most of the opportunity we’re currently presented with."

And "as time is pressing and our campaign is already under way, your immediate attention is greatly appreciated".

It then had the bank account name and number for the NZ First Foundation, not the party.

Asked by Dickson what the difference was between the party and the foundation, Mitchell said: "At the time, I saw them as the same thing, the New Zealand First Foundation as an arm of New Zealand First and I didn’t differentiate between the two as far as donations went."

The letters also included information about electoral laws and donation requirements.

The former list MP arranged lunches and dinners with donors, many of them with party leader Winston Peters as the star attraction. When asked how he decided if donations should go to the party or the foundation, he said his decision was based on "whoever needed the money at the time".

Many donors have already told the court they didn’t know there was a difference between the party and the foundation. However, party board members were told the New Zealand First Foundation was being established to collect funds for capital expenses, and not party campaigning.

The 40-odd donors listed on the witness list include some big names in the horse racing and business world.

Peters is not expected to appear as a witness during the trial.

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