KEY POINTS:
Controversy over political donations has spread to New Zealand First, the Government's key support party led by Foreign Minister Winston Peters.
Party president Dail Jones is in trouble with Mr Peters after claiming that a large anonymous donation to the party in December went towards its $158,000 cheque to the Starship Foundation - a cheque since returned to sender.
The cheque was the party's cheeky response to the Auditor-General's finding that its share of unlawful parliamentary expenditure in the 2005 election was $158,000. Other parties repaid the money to the Parliamentary Service.
Mr Peters was reported on One News last night saying that what Mr Jones had said was "completely wrong".
Mr Peters also said businessman Owen Glenn, Labour's largest donor, had never given money to his party, after the possibility was raised on the Herald website yesterday.
Mr Jones told the Herald the party received an anonymous donation last December - "closer to $100,000" than $10,000 - which was used in the donation to the Starship Foundation.
The issue of what Mr Glenn has given to other parties was fuelled by comments he made in January when he told the Herald he had given money to other New Zealand political parties, but would not name them.
The expatriate businessman, who is based in Monaco, is back in New Zealand for the opening tonight of the Owen G. Glenn Building by Prime Minister Helen Clark at the Auckland University business school, to which he donated $7.5 million.
Through a PR firm yesterday, he categorically denied being the source of a $250,000 offer to the Maori Party at the last election if it went with Labour.
Such an offer has been previously revealed by co-leader Tariana Turia, but she has not said who made it.
But on the matter of whether he had given money to New Zealand First, Mr Glenn declined to make any comment yesterday and referred the question to the party.
Prime Minister Helen Clark acknowledged that Labour president Mike Williams had made "a mistake" in not disclosing the $100,000 interest-free loan Mr Glenn made to the party.
She also disclosed that Mr Williams had discussed with her the issue of Mr Glenn being made honorary consul to Monaco. Any such appointment would be decided by Mr Peters.
Labour issued a statement saying Mr Williams had apologised to Helen Clark for the error and repeated its promise that the interest-free loan would be included in its 2008 disclosures to the Electoral Commission.
It said that in response to questions at the time of the New Year honours about Mr Glenn's donations to Labour, Mr Williams "incorrectly said that we had not received any donations from Mr Glenn since the 2005 election".
