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In an ironic twist the Electoral Commission has found New Zealand First's party secretary did not break the law over incorrect returns last year, but ACT did.
ACT had repeatedly attacked NZ First over its alleged failure to declare cash and donations, and its leader Rodney Hide laid a police complaint relating to the 2007 return.
The commission last night released its decision saying while New Zealand First did not declare donations in 2005, 2006 and 2007 it was not asking for a prosecution.
However, the commission did find that ACT got free office space from Sir Robert Jones for a number of years until 2005, at a value of approximately $20,000 per annum.
The commission found that the office space was a party donation and was not included in ACT New Zealand's annual returns of donations for the relevant years, the decision said.
It said ACT must file amended returns but there would be no prosecution because the period in which that could happen had expired.
When asked if the finding was potentially embarrassing, Act leader Rodney Hide said "not at all, why would I be embarrassed?"
He said Deborah Coddington arranged an "out of Parliament office" before his time as leader and the office "was nothing to do with the party".
"We had an MP with a parliamentary office who sought advice, they were told they didn't have to declare it and they didn't and now they've decided we did need to declare it so we do," Mr Hide said.
New Zealand First leader Winston Peters said he always knew the Electoral Commission would clear his party secretary over a failure to declare donations and he hit back at Mr Hide.
"His party's in the gun now as it always should have been. It was a really disgraceful exercise in New Zealand politics," Mr Peters said.
"That's two down and the police to go, and the police have got no where to look either because it was always a matter to do with electoral law," Mr Peters told Radio New Zealand this morning.
"We always knew this would be the case."
Mr Peters said the party had sought commission advice about whether it was required to declare the money or not, and it could not say.
The party followed legal advice that it did not have to declare donations made through its Spencer Trust.
"There was no evil forethought or design to keep it secret."
Of New Zealand First, the Commission said: "No offence committed by the Party Secretary (Anne Martin) in respect of the 2007 annual return," it said.
"New Zealand First is required to file amended returns and accompanying auditor's reports for the 2005 and 2006 years.
It did not release full findings, to avoid prejudicial to the police investigation.
The party got an $80,000 donation from its Spencer Trust in 2007. It was the only year the commission could act on as the period for prosecutions expired on the other years.
The Serious Fraud Office (SFO) this month cleared NZ First after investigating two donations to the party.
It found the money was used for the purpose the donors - Sir Robert Jones and the Vela family - intended.
NZ First leader Winston Peters was stood down from his foreign affairs and other portfolios while the SFO inquiry was carried out, and Prime Minister Helen Clark took over.
The police investigation is ongoing and the Auditor-General is looking into party affairs.
- with NZ HERALD STAFF & NZPA
