National denies cheque diverted

By VERNON SMALL and NZPA

Former National Party president Geoff Thompson confirmed yesterday that he received two cheques from merchant bankers Fay Richwhite for the party's 1996 election campaign.

The instalments were subsequently combined into one payment to the party, he said.

The Serious Fraud Office is investigating an allegation that one of the instalments, understood to be about $250,000, was misused.

Both Mr Thompson, party president in 1996, and current president Michelle Boag said yesterday that there was no evidence of fraud by anyone and the records given to the SFO would prove that.

Neither would confirm the amount of money.

Mr Thompson told NZPA: "I can't see any fraud and the current president has checked the records and can't find any misuse ... The complaint to the SFO seems to be mischievous."

He said no one had raised concerns about how the donations had been handled by him or anyone else.

"I did get two cheques within a week of each other or something like that. They were put on deposit with the bank, earned interest and then a couple of months later were combined into one payment for the National Party. All that is very, very clear from the records."

Approached for comment, Fay, Richwhite associate Bill Birnie referred the Herald to Ms Boag - a former fulltime public relations woman for Fay, Richwhite.

Ms Boag said yesterday that Sir Michael Fay had told her he was satisfied the money was used appropriately and had made no complaint against the party.

National has demanded that the SFO name the complainant and give it details of the investigation.

"We have today requested [in writing] from the SFO details of the complaint, a time frame and the name of the complainant," said Ms Boag yesterday.

She would not speculate whether National would take legal action to obtain the information.

"It is very early days. I just want to get this thing over and done with."

SFO director David Bradshaw has said he is investigating "a particular allegation relating to an aspect of funding provided to the National Party in the mid-1990s".

He has refused further comment.

Labour Party president Mike Williams has rejected accusations that Labour may be behind the allegations. He said it was an internal National dispute.

"I think it's the sort of dead wood fighting back."

Mr Williams backed Ms Boag's call to be told who had made the allegation, saying everyone had the right to face an accuser.

Attorney-General Margaret Wilson did not support Ms Boag's call to be told who had made the allegation. "These are difficult investigations, they're not trivial matters, and to be able to do the investigation properly obviously they need to conduct it in this way."

It was usual for the SFO to establish a prima facie case before going ahead with an investigation.

"They just don't take something on unless there is some evidence there that requires an investigation."

National leader Bill English was told of the SFO probe on Friday, shortly after Ms Wilson.

Ms Boag said yesterday that National believed others in the Beehive might also have been told.

National had provided all the information Mr Bradshaw needed, and there was nothing untoward.

Ms Boag said only a limited number of people had the sort of information the Herald disclosed yesterday, and it was not provided to politicians in the party.

"The only way anyone in the caucus would have been able to find out is if they had been advised by someone very senior in the party."

Ms Boag said that by coincidence she had bumped into former National Party president John Slater at the airport yesterday.

Mr Slater had denied laying the complaint with the SFO.

She said Mr Thompson, who was president when the donations were made, had been able to provide the information she required when she approached him last Friday.

"The documents that I got from Mr Thompson clearly satisfied me, which is why I produced them to the SFO."

She still did not know specifics of the allegations.

"I am responding to your questions because you seem to have much more detail of the nature of the complaint than I do."

She had given the SFO information about two cheques paid into a trust account.

One cheque was then paid to the National Party, which "fully accounted for all the money that was in the account".

"There were some disbursements of a very limited nature, but they were paid on invoice and on receipt to a person who was doing some work for the party related to the campaign.

"It was a pollster, but it was a very limited amount. And then the full balance was paid out to the National Party by cheque."

She said the expenses paid out of the trust account would have represented 5 to 7 per cent of the donation.

The account had earned interest, and that had been accounted for too.

Ms Wilson confirmed that she was told about the SFO probe shortly before Mr English. The SFO had tried to notify Mr English first, but he had been travelling.

The SFO did not give her details of the allegations. It was normal for her to be informed of SFO investigations. She said the SFO had told Mr English, not Ms Boag, because it was assumed Mr English would tell his party president.

Ms Wilson did not know the amount involved, but said the SFO "did not involve itself in trivial sums".