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Winston Peters has for the first time admitted some knowledge of the Spencer Trust and its $80,000 donation to his New Zealand First party that is now the subject of a police investigation.
Mr Peters said he was aware in May that the party had sought "legal advice" before deciding not to declare the $80,000 donation from the trust.
"I said you must go ahead on the legal advice that you've got, this is not a matter for the party parliamentary organisation, it is a matter for the organisation itself, and that is what happened," Mr Peters told Radio New Zealand yesterday.
Donations of over $10,000 must be declared to the Electoral Commission and police are now investigating why it was not. The donation was in one sum but had been channelled through eight related companies in amounts under $10,000.
The auditor, Nick Kosoof, approached the Electoral Commission on May 13 asking whether the donation had to be declared.
The commission did not provide Mr Kosoof with a definitive answer but referred him to some websites.
NZ First's return was late at this point and Mr Peters was overseas but party president George Groombridge said at the time it was waiting for him to get back on May 16 and "tie up some loose ends".
Mr Peters confirmed to National Radio that he was told about the donation when he got back from overseas.
NZ First then filed a nil return to the commission.
NZ First did not respond to a query about exactly what the "legal advice" was.
The admission shows Mr Peters knew of the donation and most likely the trust.
Despite being asked, Mr Peters has never said when he became aware of the Spencer Trust. On July 29, he told a press conference that he had no knowledge of what the trust was used for.
The Herald has learned from informed sources that Mr Peters knew about the trust, how much money was kept in it at certain times, and that he directed staff to get it to pay party expenses.
