KEY POINTS:
New testimony from billionaire Owen Glenn is expected to be presented at tomorrow's privileges committee inquiry into his $100,000 donation towards Winston Peters' legal bill.
The committee asked for clarification and it is likely he has written a second letter with greater detail of how he came to make the donation.
It is bound to raise questions about who asked Mr Glenn for the money, which was used to pay for an electoral petition mounted by the New Zealand First leader.
Efforts may also be going on to get Mr Glenn to appear by videolink.
Mr Peters has indicated he wanted to appear at the committee tomorrow to challenge some of Mr Glenn's version of events but he has not yet confirmed his attendance. The committee has no idea who will be appearing before it.
Mr Peters stepped down as Foreign Minister last Friday as the Serious Fraud Office undertook investigations into separate donations issues involving New Zealand First.
The single greatest point of conflict between Mr Glenn and Mr Peters - and central to whether any wrongdoing was committed - is whether Mr Peters knew about the donation.
Mr Glenn insists Mr Peters solicited the donation and that he thanked him for it and he is not likely to budge on that.
Mr Peters and his lawyer, Brian Henry, testified that Mr Henry telephoned Mr Glenn to solicit the donation, at the suggestion of an unnamed client of Mr Henry's.
There are no suggestions that the new evidence will prove anything conclusively, but some MPs have challenged Mr Henry to table the telephone record of his conversation with Mr Glenn. There has been speculation that Mr Henry contacted Mr Glenn by email.
Meanwhile, NZ First yesterday admitted breaking the law by failing to declare a $50,000 donation from the Spencer Trust, but claims it was an "administrative bungle".
The 2005 donation was not declared to the Electoral Commission as was required with all sums over $10,000.
The breach cannot be prosecuted because under the old law it was required to be investigated within six months. But a successful prosecution could have resulted in a fine of up to $20,000 and/or a year in prison.
The party was forced to make the admission so it could be proved to the SFO that the Spencer Trust donation got to its intended destination.
Mr Peters would not comment last night but a spokesman said the non-declaration was an administrative bungle.
The breach was revealed when the trust's records of Sir Robert Jones' $25,000 donation were made public by one of the trustees, showing it transferred to an NZ First account in a $50,000 lot with another anonymous donation on September 7, 2005, 10 days before the last election.
The party released a letter from its auditors written yesterday that said it was because of an administrative error, made during an "extensive changeover of administrative staff" and was "unfortunately overlooked".
The letter from auditor Nick Kosoof referred only to the $25,000 donation from Sir Robert as being undeclared, even though the undeclared amount was, in fact, $50,000 from the Spencer Trust.
National leader John Key said it appeared NZ First had breached the law. Prime Minister Helen Clark refused to comment.
