KEY POINTS:
The sun was beating down at Karaka and Winston Peters was alternating between his trademark grin and his trademark scowl.
He was out of his suit, and in a casual jacket and open shirt _ but still with his ever-present pocket handkerchief.
January 31, 2006 was a big day out for Mr Peters: his first Karaka sales as Minister of Racing with the who's who of the industry from here and abroad.
As Mr Peters watched the yearlings circle the outdoor sale area, he was not to know it was a day that would later deal a massive blow to his political career.
The sales are run by New Zealand Bloodstock Ltd _ owned by rich-list brothers Peter and Philip Vela, who have been reported as giving up to $150,000 to Mr Peters' New Zealand First party.
Mr Peters went to their Pencarrow Stud tent for lunch with up to 120 of the best trainers and biggest buyers.
Among them was another big donor _ the Monaco-based billionaire and racing enthusiast Owen Glenn, who had just put $100,000 towards Mr Peters' legal fees.
Mr Peters has taken issue with what happened next: it is a vital part of his denial of knowing about the donation. But for Melbourne Cup-winning trainer Paul Moroney, who was escorting his client Mr Glenn, it is simple.
Mr Peters sat next to Mr Glenn and thanked him for the donation.
He backed up Mr Glenn's evidence to Parliament's privileges committee with a sworn affidavit to this effect.
Mr Peters countered with a statement from Donald McIlraith _ a director of Vela companies and then the chairman of New Zealand Bloodstock.
Mr McIlraith's version had Mr Glenn lunching without Mr Peters, with the Racing Minister sitting down later with a group hosted by David Ellis, the renowned horse syndicator.
Mr McIlraith said this meant Mr Moroney's version was "not accurate".
But Mr Moroney said his statement never said they actually ate lunch together, and that they had obviously met earlier on in the tent, recalling Mr Peters coming in then enjoying a glass of wine as they sat together.
Mr Moroney said Mr McIlraith had actually backed him up, putting Mr Peters, Mr Glenn and the Vela brothers all in the same place together _ interesting, he said, given that Mr Peters had initially claimed he was not even at the sales that year.
Mr Glenn mingled with the Vela brothers too.
While Mr Glenn and Mr Peters no longer get along, he still has some connection to the Vela brothers, who are believed to have given $80,000 that went via the Spencer Trust to New Zealand First late last year.
The two countering versions of the lunch essentially pit Mr Glenn's side against the Vela side.
Not that this worried Mr Moroney, who did not fear a backlash from the Vela brothers or industry insiders upset that he had potted their popular minister.
As he told the Weekend Herald: "This is about the truth."
