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NZ First leader Winston Peters and senior MPs were briefed on the expenses and activities of the NZ First Foundation a year before it made headlines. Stuff may reveal, contradicting Peters’ constant assertions that the foundation had nothing to do with his political party.
Stuff has seen an internal party report that, according to a source familiar with the matter, was presented to Peters in November 2018.
The report, dated November 21-23, 2018 [sic], was written by former party chair Lester Gray. It is understood that it was hand-delivered to Peters’ home mailbox in Auckland on Sunday 25 November, prior to a meeting on the matter.
The report referred to money in NZ First Party’s Kiwibank account, as well as money in the Foundation’s ASB bank account. He totaled the expenses incurred by the ASB account and classified them as party costs.
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It is understood that Gray then briefed Peters, MPs Fletcher Tabuteau and Clayton Mitchell at Tabuteau’s Wellington office on Tuesday, November 27.
Stuff you have also seen a separate memo written by then acting party treasurer John Thorn to the “board of directors” dated May 5, 2017. It reveals that the foundation was originally intended as a “protected capital fund. “ie the contributions would never be spent, only the earnings from the fund’s investments. It was originally intended to be operated “remotely” from the dash.
The memorandum states that the foundation would be based on the National Foundation of the National Party, which is a fund protected by capital. It says: “There is no doubt that the model is legally sound and is operated in a way that complies with all legal and ethical obligations.”
STUFF
New Zealand’s First Leader Winston Peters answers questions after his party lashed out at the Serious Fraud Office for its investigation into the First New Zealand Foundation.
However, previous Stuff Stories have revealed that the First New Zealand Foundation actually operated as a party bribery fund. Capital was spent on all kinds of party expenses, including campaign headquarters, office furniture, salaries, and other campaign costs. Some donors who thought they were donating to the party were actually donating to the foundation.
The disclosure comes after Peters claimed on Sept. 29 that NZ First had been “exonerated” by the Serious Fraud Office and continues to claim that the foundation and the party are completely separate entities.
The Serious Fraud Office (SFO) has brought fraud charges against two individuals, whose names are suppressed, who allegedly deposited more than $ 740,000 into the foundation’s accounts in an attempt to mislead the Elections Commission.
The SFO noted “that none of the defendants is a minister, sitting deputy or candidate in the next election (or a member of their staff), or a current member of the First New Zealand party.”
The party report seen by Stuff shows only part of a complicated image. It collects $ 219,000 in expenses incurred by the foundation between November 16, 2017 and November 16, 2018, which were used to pay the costs of a business.
The company, which cannot be named for legal reasons, appears to have been used to help NZ First Party collect donations.
The report refers to a contract between the company and NZ First that allowed the company to receive 15 percent of all donations as a “royalty fee.”
The report called this “unsustainable” and wanted the company to be dissolved, with deputies and members of the party’s board taking office.
If the company stayed, the report says, it could only do so “if it can operate without New Zealand First donations from donors and members.”
According to documents seen, NZ First Party only publicly declared donations worth $ 87,000 throughout 2018, far less than the expenses incurred by the company.
At the time of the report, the party had only $ 11,498 in its account, with $ 15,436 of outstanding bills. The foundation’s ASB bank account is listed as the one that pays for many of the party’s activities.
The report showed at the time that while NZ First was struggling financially, there was around $ 40,000 in the foundation’s account.
RYAN ANDERSON / Stuff
NZ First frontman Winston Peters.
Minutes from a meeting of the NZ First board of directors held on March 13, 2017, to which Peters is listed as an assistant, reveal that Thorn, a member of the board of directors of NZ First, was the one who originally raised the idea of establishing a foundation and put the foundation idea to a vote. of the board.
Peters was present for at least part of the meeting during which the decision to establish the foundation was made. Thorn, then acting treasurer of the party, proposed a vote and Julian Paul seconded. The motion passed. According to the minutes (company and board minutes are usually written chronologically) Peters made another motion later in the meeting.
Peters has declined to answer written questions about the company.
Tabuteau said he would not comment. Mitchell has not responded to requests for comment.
Meikle, who currently handles Peters media inquiries, did not respond to questions but did send an email to the editor of the Waikato Times saying the matter was before the courts.
