KEY POINTS:
New Zealand First's failure to declare a reported $50,0000 has been labelled a mistake by one of its MPs.
It follows reports The Spencer Trust paid the party the money before the 2005 election.
National is questioning whether electoral laws have been broken.
New Zealand First deputy leader Peter Brown appears oblivious to any wrongdoing, saying it appears to be a genuine mistake and he does not know anything more about it.
Party leader Winston Peters has been a no-show during question time this afternoon.
He is understood to have spent the day in Auckland ahead of his appearance in front of the Privileges Committee on Thursday.
Earlier the SFO used its special powers to seize the records of the Spencer Trust as part of its ongoing investigation into New Zealand First donations.
SFO investigators took the records away from Whangarei lawyer and Spencer Trust trustee Grant Currie last night.
Mr Currie said the SFO took the "complete records" of the trust from when it was opened in August 2005.
The SFO is investigating donations to New Zealand First from Sir Robert Jones and the Vela family. The party's leader Winston Peters stood down as Foreign Minister on Friday while the inquiry continues.
Mr Peters' lawyer Peter Williams told Newstalk ZB the documents were not "seized" by the SFO. He said the documents were requested and were then handed over.
However, Mr Currie said the SFO had used powers which allow it to view any documents.
He said this allowed him to hand over information that could not usually have been given willingly without breaching the confidentiality of those involved.
"They have retained the documents on the basis they will take copies and return them to me promptly," Mr Currie said.
Mr Currie said the SFO did not use its powers that forced people involved to answer questions
Mr Currie released some Spencer Trust records to the Herald relating to the $25,000 donation by Sir Robert. The records reveal another donation.
The Spencer Trust bank statements showed Sir Robert's $25,000 going in on August 2005, and a $50,000 chunk going out to NZ First that September.
The details of the other $25,000 donor were blacked out.
The $50,000 donation was not declared to the Electoral Commission as is required by law with donations of $10,000.
The breach is technical as the law requires it to be investigated within six months.
National leader John Key said "on the face of it without being able to see any further information" it appeared NZ First had breached the law by not declaring the $50,000.
"That is one of a number of allegations which will now need to be cleared up by Winston Peters," Mr Key said.
Prime Minister Helen Clark today refused to comment on the likely breach of the Electoral Act.
"I'm standing right back from these matters. Obviously there are two inquiries that are going on," she told reporters. "I don't intend to comment on the substance of anything."
Mr Currie said the issue was a matter for New Zealand First, not the Spencer Trust.
Mr Currie and Mr Peters' brother, Wayne Peters, also a Whangarei lawyer and the trust's administrator, are two of three Spencer Trust trustees.
Mr Currie said the third trustee wanted to remain anonymous.
Mr Currie said "the only purpose of the Spencer Trust was to receive donations from New Zealand First, and pass them on to New Zealand First".
The Spencer Trust was set up in August 2005 and Sir Robert's donation was its first payment.
Winston Peters has denied his party has done anything wrong and says he has the evidence to prove this to the SFO.
A separate inquiry by Parliament's privileges committee is looking into a $100,000 donation by billionaire Owen Glenn.
In Parliament today, moves to hold a snap debate on the standing down of Peters found no favour in Parliament today.
ACT Leader Rodney Hide had requested an urgent debate on the matter in light of events of the past few weeks.
But Parliament's Speaker Margaret Wilson ruled against it while the Privileges Committee Hearing and Serious Fraud Office investigations are continuing.
However she is not ruling out a snap debate being allowed after those matters are resolved.
National leader John Key and Prime Minister Helen Clark remained in full debate mode as the point scoring over the New Zealand First funding scandal continued in Parliament.
The Prime Minister's knowledge of the Owen Glenn donation dominated proceedings in question time today.
Mr Key attacked the Prime Minister for failing to disclose what she knew about the donation, at a time when Mr Peters was accusing the media of lying about it.
He says Miss Clark is complicit in Mr Peters attempts to mislead the public.
But Miss Clark stuck to her line, that the matter was a conflict of evidence between Mr Peters and Mr Glenn. She also says both men are honourable and she assumes there is an innocent explanation for what has happened.
Miss Clark still insists National was tipped off about the Serious Fraud Office investigation into New Zealand First. Yesterday she suggested the SFO, Crown Law or police may have been responsible for the news getting out.
In the face of attacks from National today, Helen Clark stuck to her claim a leak occurred, but did not identify possible culprits. She maintains somebody, somewhere in the Government system had to be responsible for it leaking out into the public arena.
Helen Clark says Mr Key's timing in ditching New Zealand First is more than a coincidence.
- with NZPA, NEWSTALK ZB
