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The National Party is questioning whether New Zealand First Leader Winston has acted ethically in the wake of revelations expatriate billionaire Owen Glenn donated $100,000 towards his legal action fund.
NZ First members today began their annual conference in Auckland, which also marks the 15th anniversary of the party's birth.
However the celebrations have had a shadow cast over them with last night's u-turn by Mr Peters over Mr Glenn's role in his finances.
Last Saturday, when the Weekend Herald published an email from Mr Glenn in which the business tycoon said he had given money to NZ First. However, Mr Peters has angrily denied that - until last night.
National's Deputy Leader Bill English said both Mr Peters and Prime Minister Helen Clark had questions to answer, including why Miss Clark had not tried to clear up the issue earlier.
"Other questions include whether Helen Clark is happy that her Foreign Minister has acted ethically and responsibly in meeting his disclosure obligations as a Minister in her Government.
"Owen Glenn has made no secret of the fact that he wants to be New Zealand's honorary consul in Monaco - a post which Mr Peters, as Foreign Minister, appoints," Mr English said.
"Helen Clark needs to explain why Mr Glenn thinks he's in the running for the honorary consul post and whether she considers the fact that he's made a substantial donation to Mr Peters' legal bills will make any difference."
A spokesman for Miss Clark said she would not comment as it was a matter for Mr Peters.
Mr Peters said today there was a difference to a donation to his legal fund and his party.
"Not one cent went to NZ First, not one cent went to me," Mr Peters said.
"A donation was made to a legal case, which is a massive difference."
The money was used to try and overturn the election night result in Tauranga, when Mr Peters lost to National's Bob Clarkson. It failed.
Mr Peters said others had donated to the legal fund, but he had personally made up shortfalls in costs.
When Parliament resumes next week, questions will be asked on whether the donation should have been disclosed under electoral law, MPs requirements to disclose interests or under Cabinet rules.
Mr Peters said he had told the "truth and the facts" as soon as he was aware of them.
He left the informal press conference with the media still wanting to know more, but in the eyes of his party faithful he could do no wrong.
Party President George Groombridge said Mr Peters had provided a "wonderful explanation", while delegates at the conference serenaded Mr Peters with the Tina Turner song Simply the Best.
In a statement yesterday, Mr Peters said Mr Henry had told him Mr Glenn had donated "a sum in the order of $100,000" towards the legal costs of the petition.
"Mr Henry decided, due to the publicity over the past weekend in respect to Mr Owen Glenn, that he should break this policy and inform me that Mr Owen Glenn had donated in 2006 a sum in the order of $100,000 towards the legal costs of the Tauranga electoral petition."
Mr Peters said today questions about the Monaco appointment were hypothetical as there was no such post. Any decisions about creating that post would be made by Cabinet.
Mr Peters also defended Mr Glenn, saying he was just trying to help New Zealand by seeking such a position and doing for the work for free.
- NZPA
