KEY POINTS:
The mysterious big-money donation that spurred Winston Peters' infamous "no" press conference was $80,000 and went towards helping to put right New Zealand First's wrongful spending at the last election.
But exactly whose $80,000 it is remains hidden behind the Spencer Trust - the entity already exposed as host to donations from Sir Robert Jones and the Vela brothers.
The money was paid to NZ First last December and the Herald understands it went towards the $158,000 the party should have refunded to the taxpayer after the Auditor-General found it had wrongfully spent. NZ First gave the sum to charity instead.
The donation is now likely to be investigated by police as NZ First breached the law by not declaring it to the Electoral Commission as required with all donations over $10,000.
The trust yesterday admitted to a donation that has fuelled speculation since February when the NZ First president at the time, Dail Jones, revealed the party received an anonymous sum last December "closer to $100,000 than $10,000".
Mr Peters then held a press conference where he held up the "no" sign to questions about the donation, did not answer where it came from, and said: "Since the formation of NZ First, we have assiduously at all times complied with the electoral law of this country."
NZ First subsequently filed a return to the Electoral Commission showing "nil" donations over $10,000 in 2007.
But Spencer Trust trustee Grant Currie, a Whangarei lawyer, told the Herald the trust made an $80,000 donation last December, and it was therefore "more than likely" this was the donation Mr Jones was talking about.
He said the $80,000 was a "conglomeration" of smaller donations. NZ First refused to comment last night.
A successful prosecution could result in a fine of up to $20,000 and/or a year in prison.
The Spencer Trust was set up in 2005 to channel money to NZ First and became public when property magnate Sir Robert Jones raised concerns about whether a $25,000 cheque he made out to it ever got to the party.
Racing and bloodstock millionaires Philip and Peter Vela were this week revealed to have donated $80,000 to the trust in different lots. It is not known if these make up some or all of the 2007 $80,000 donation.
NZ First has never declared any Spencer Trust donations.
The party also breached the law by not declaring a $50,000 Spencer Trust donation in 2005, half of which was Sir Robert's money. Mr Currie said there were Spencer Trust donations in 2006 that should have been declared.
These breaches cannot be prosecuted because under old electoral law they had to be investigated within six months.
The $80,000 donation falls inside this period as the 2007 return was given to the commission this May.
Act MP Rodney Hide yesterday laid a complaint with the police about it.
The commission said it had received a complaint from a member of the public, was monitoring developments and would report any breach to the police for investigation.
If the police investigate, it will be the third inquiry Mr Hide has started into the donations controversy: The Serious Fraud Office is looking at whether donations from Sir Robert and the Velas made it to the party and Parliament's privileges committee is deciding if Mr Peters should have declared a $100,000 gift from billionaire Owen Glenn.
NZ First refused to pay back the $158,000 it owed taxpayers for unlawful campaign spending, instead donating it to charities that Mr Peters will not name.
