Why the PM is furious at the SFO

September 23rd, 2008 at 8:57 am by David Farrar

Having now seen the evidence from the SFO, it is no surprise that the Prime Minister is furious that they told the truth to the Privileges Committee. Clark is still questioning the judgement of the SFO Director, and complaining he did not consult Crown Law.

Apart from the fact there is no requirement he do so, I say thank God he didn’t. Crown Law would have informed the Attorney-General who was moonlighting as Co Chief Defence Counsel for Winston Peters at the Privileges Committee.

Look at who the Director did consult:

  1. The Clerk of the House of Representatives
  2. The Auditor-General (who is empowered to investigate matters relating to the Register of Interests)
  3. A QC

There really is no question that the Director acted properly. Those suggesting he did not, are trying to divert attention from the devastating evidence he provided. You see we learnt that the Spencer Trust did not just deliver money to NZ First, but to Winston Peters personally by paying off a $40,000 debt of his.

ACT tried to get the Privileges Committee to further investigate the Spencer Trust after the SFO investigation. And they are right that the issue of secret donations through the Spencer Trust to pay off a $40,000 debt of Peters is of massive concern.

The reason the PM is so furious is because the SFO evidence directly calls into question the integrity of decision making in her Government.

It is hard to not conclude that the ultimate donor of the $40,000 was the Vela Family. The descriptions in the SFO report strongly suggest that. And the Vela Family make much of their money from horse racing.

Now I am not suggesting the Velas had bad motives with their donations. I support their right to donate to parties they support. But there is a massive difference between a donation to a party and a donation or gift to an MP personally. The former is absolutely common. The latter is unheard of in NZ at the level of $40,000.

Winston Peters got the Government to give a lot of money to the racing industry. He had to persaude Clark and Cullen to ignore Treasury advice and go along with his plans for the Giovernment to provide prize money for some horse races.

Now if he was the personal beneficiary of a $40,000 donation (through paying his debt) from racing industry figures, then that absolutely 100% had to be disclosed. In fact the Prime Minister has to approve retention of any gift over $500 this is such a serious issue for Ministers.

Consider how scandalous this would be in a different portfolio.  Let us say Winston was Minister of Health and he persuaded Cabinet to fund a new drug against the advice of Pharmac. And then it turned out the drug company that manufactures that drug had given him $40,000. You start to get the idea of how serious it is.

The PM needs to urgently find out whether that $40,000 was in fact donated by the Velas. The secrecy of donations through trusts (a practice I sumitted to Parliament should end incidentially) has only ever applied for donations to political parties. There can be no secrecy for donations to Ministers of the Crown.

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39 Responses to “Why the PM is furious at the SFO”

  1. wreck1080 (2,851) Says:

    Have things got so bad in the government, that standard channels cannot be followed because those standard channels are politically aligned to the ruling party?

    This , is a very bad state of affairs. This is the path to Zimbabwesque politics.

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  2. democracymum (660) Says:

    The real question today is not whether John Key had 50 or 100 shares in Tranz Rail, (shares that he lost money on) but why Helen Clark still refuses to sack Winston Peters.

    Helen Clark has said in Parliament she’d accept Mr Peters’ word “unless something arises out of the privileges committee or some other appropriate authority”
    Why then today does Winston still have his ministerial warrant, staff and full pay?

    Helen Clark never had any intention of sacking Winston Peters.
    “Due Process” was just another way to ensure that Labour’s coaltion partner survived until the election.

    The Prime Minister is herself guilty of “providing false and misleading information” to the New Zealand public.
    Let’s hope both Labour and NZ First will both be censured in the upcoming election.

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  3. coventry (297) Says:

    So this would be the Spencer Trust that Winston knows nothing about ?

    Also, if Owen Glenn had given Henry the $100K for Legal Fees & Sundries (the settlement), why does this other 40K need to come from the Spencer Trust ?

    Also any one else find irony in thee fact that it’s the SPENCER trust. A Spencer being a form of under-wear… could this be a word play on our old mates Tuku’s under-pant saga ?

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  4. unaha-closp (886) Says:

    How Winston rolls, it sounds like Scribe, but in a bad way.

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  5. davidp (2,739) Says:

    Remember: A vote for Labour is a vote for NZ First is a vote for bribing Ministers.

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  6. Don the Kiwi (958) Says:

    Clark and co are starting to make Muldoon look like a babe in arms – at least he wasn’t openly crooked.

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  7. Hagues (711) Says:

    d-mum “Helen Clark has said in Parliament she’d accept Mr Peters’ word “unless something arises out of the privileges committee or some other appropriate authority”

    Well lets hope that someone asks her in question time today “Does she stand by her statement etc etc” and nails her with that comment she made. Time for National to go hard or go home. Lets see them go for it big time.

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  8. Lee C (4,499) Says:

    “Time for National to go hard or go home.”
    I have a feeling they will be booking their tickets then, as they are puppies up against wolves. As history suggests.

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  9. democracymum (660) Says:

    Hagues

    This is the reference to her actual quote:
    New Zealand Herald
    Aug 27, 2008
    By Audrey Young

    http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10529211

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  10. PhilBest (5,060) Says:

    “Absolute Power”………NEARLY, but not quite……..this is a crucial moment in the history of NZ’s Executive powers. Another few months and another term, and she’d have been THERE, by gum…….

    WAKE UP, Kiwis, you NEARLY lost the lot….

    “We didn’t value freedom enough…..we purely and simply deserved everything that happened”
    -Alexander Solzhenitsyn

    “The price of freedom is eternal vigilance”
    -Thomas Jefferson

    As some guy called “Nefarious” said on the next thread, Kiwis lounge in front of the idiot box for hours with their brains switched off, at their peril…….

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  11. colinbr (5) Says:

    Well, I just hope Winnie had the decency to thank The Velas at Karaka

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  12. anonymouse (495) Says:

    To me the most interesting thing exposed by the SFO is the flow of information between Henry, the Spencer Trust and its lender and donors,

    The whole way the $40K for the Clarkson transaction was put together is very intriguing.

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  13. Viking2 (9,493) Says:

    Why don’t we compare the activities of Peters and donations to the activities of King and her associates in relation to perhaps the Hawkes Bay DHB? Money by any other name is still influence.
    We could perhaps list a whole lot more influences by this scumbag lot.

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  14. goodgod (1,363) Says:

    Kiwiblog headlines: Helen furious corruption and bribery found out.

    Herald Headlines: Dancing poodle found in Otago.

    Stuff headlines: John Key thought about owning poodle in 1987.

    Scoop: (Media Release) Greens blast poodle owners over kennel conditions.

    Meanwhile in the National lounge…

    “I say, have you seen the new smoking jackets advertised in Tobacco Monthly?”

    “What’s that old chap?”

    “Smoking Jackets.”

    “Oh. Yes, fabulous.”

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  15. gd (2,286) Says:

    So are any of you Doubting Thomas’s still doubting the real reason Clark has not sacked Luigi

    Come on Hes in 3rd place in Tauranga at 12% with Simon Bridges polling the same as the Nats nationally NZ1 are on 1.8% in all the polls except Morgan

    Theres no way he ot they are going to get back

    So why is she still protecting him It aint nothing to do with politics thats for sure

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  16. Dock (43) Says:

    I was wondering why all of a sudden Winston was starting to sweat when previously he has been all mouth and trousers.

    The second the SFO wanted to give evidence to the committee Winston knew that they were going to reveal the personal donation to Winston himself and not the party.

    This makes the game very sharp indeed. This could send Winston to jail. Bribed as a Minister of the Crown to further the interests of the Racing Industry.

    No wonder Helen and Michael are spewing anything they can at John Key to deflect the medias interest.

    I repeat.

    He must have something awfully big on Helen for her to appear to commit political suicide to defend him.

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  17. rightofleftcentre (73) Says:

    Today’s the day National has to get out of their comfortable trenchs.

    Just as they were about to lay up the ladders, a mortar has flown into their midst.

    What happens next will be the measure of them – cringe and squirm and get over-run by their battle hardened emenies, or climb the ladders and take them head on knowing that the flag of right flys high over them.

    Chaaaarrrrrggggggggee!

    Seriously though, this is D-Day – they’ve got ammunition for Africa. Use it!

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  18. Craig Ranapia (1,911) Says:

    So why is she still protecting him It aint nothing to do with politics thats for sure

    Of course it does. I’m more likely to ask for a steaming plate of tripe and onions (I hate both), before Clark stands up — just over six weeks before a general election she says is all about trust and credibility — and say “I made one hell of an error of judgement, and Winston is off to the vet to have his baubles cut off.”

    In the end, Clark thinks she can run out the clock and the stupid peasants won’t think her judgement and credibility are tainted. And what better way to do it than attacking the integrity and honesty of people who are in absolutely no position to respond in kind?

    It’s ALL about politics. What remains to be seen is whether Clark and Cullen have been smart or too smart-arsed for their own good.

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  19. gd (2,286) Says:

    Craig When a smart politican sees their so called political friend in the position that Luigis in they cut them lose rather then go down with the sinking ship.

    Bridges will win Tauranga in a canter NZ1 will be lucky to poll 2% Clarks advisers will be telling her that.

    And they will be telling her shes bleeding votes from the fringe and the undecided every day that she keeps supporting Luigi.

    IMHO this has gone way beyond politics This is all about MAD Mutually Assured Destruction

    Shes pissing off the Greens big time Shes pissed off the Maori Party big time When she flip flopped about the PC then she showed her hand.

    She cant fire Luigi no matter what the evidence and the jury has returned its verdict and its Guilty.

    She has been caught in a play where she is damned if she does and damned if she doesnt

    And for those of us familiar with Machiavelli its is sweet irony

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  20. llew (1,532) Says:

    So are any of you Doubting Thomas’s still doubting the real reason Clark has not sacked Luigi

    Well… I’m convinced your theory is bullshit, still waiting to hear the real reason.

    I bet Craig is close though.

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  21. PhilBest (5,060) Says:

    gd:

    “…..IMHO this has gone way beyond politics This is all about MAD Mutually Assured Destruction….”

    Yeah, Winnie and Helen destroy each other; OR together, they destroy NZ……..

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  22. burt (5,936) Says:

    DPF

    The PM needs to urgently find out whether that $40,000 was in fact donated by the Velas.

    Urgently find out or urgently disclose what she already knows?

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  23. gd (2,286) Says:

    Wheres the upside for Clark in all of this

    Oh sure in the early days we all know we needed NZ1 support to get the ETS and other legislation thru. And the stuff we know now wasnt in the public arena so she could fudge it.

    But thats all over now. So do you think they some how Luigis going to get above the 5 points. Or that the Socialists will pick up the votes that NZ1 sheds.

    Or that the Socialists will get enough to not need the Greens and the MP if she seriously pisses them off.

    I just cant see any upside for her. If the next polls dont show her over 40 points and heading north and NZ1 over 5 then what the hells in it for her.

    can anyone explain the strategy please

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  24. DJP6-25 (1,100) Says:

    With the revelations to date, who can doubt that the left are pondscum?

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  25. adc (519) Says:

    I heard (not sure where from) Labour are considering dropping their candidate for Rimutaka… that would get Ron Mark back in and Winston with him.

    So Labour can still keep him in cabinet.

    Any truth to these rumours?

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  26. vto (1,098) Says:

    I usually refer to Peters as Winston Bjeikle-Peterson, in reference to Joh Bjeikle-Peterson who many may recall as a Queensland Premier for many years who would make long unintelligible rambling statements that, even if replayed back slowly, would make absolutely no sense.

    Hence the similarility to Peters.

    He was also widely seen and investigated as corrupt.

    Hence the similarlity to Peters.

    He also had an even more corrupt 2iC in a man called Hinz who happenned to be not just Minister of Racing but also Minister of Police.

    Hence … Peters.

    Peters is a freakin’ clown.

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  27. democracymum (660) Says:

    gd

    I believe the PM is faced with a Morton’s Fork (an expression that describes a choice between two equally unpleasant alternatives)

    Sack Winston and watch him implode, like a political suicide bomber taking out everyone around him
    or let Winnie stay and and lose some of her support base

    This is why we will see such a focus on attempting to discredit John Key during this campaign.
    Also because this worked during the last election with Don Brash, she is keen to use it again.

    Tragically it is her only hope (and strategy) for a fourth term.
    The women and her consorts have gone septic.

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  28. gd (2,286) Says:

    dmum as I said I just cant see the smart strategy Every move Clark has made has back fired on her. She is in the hole and just keeps on digging.

    I agree with your analysis but surely she must be getting advice that support will fall away now the PC has reported.

    I fear that the Nats will not be capable of capitalising on her statements regarding the PC findings Forget the MSM twats all of them

    If they had any guts ethics and morals they would be quoting her statements to her and asking her to reconcile these with her actions or rather in actions

    Guy and Fran are but Socialists puppets and we of the RIGHT should keep on repeating this.

    Still the longer she clings to Luigi the further they will drop in the polls.

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  29. freethinker (590) Says:

    Not sure if this off topic but I hear a rumour that Peter Davis was issued with an emergency diplomatic passport whilst in SF – perhaps the reasons for such an issue and Winstons role as foreign minister is the connection with Helens protection of Winston.

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  30. democracymum (660) Says:

    gd

    Winston is probably on his way out anyway.
    He has nothing to lose by dishing the dirt on Helen if she sacks him

    He is also probably aware that she is trying to make up some of her own
    lost ground by stealing away some of his Grey supporters.
    So I’m picking the “love fest” between Helen and Winston is starting to cool considerably

    If his dirty bomb is capable of destroying her
    She will tough it out and just focus on trying to destroy JK

    Nice way for our PM to act – but there it is.

    I think you will find freethinker is thinking what a lot of people are thinking

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  31. Glutaemus Maximus (2,207) Says:

    democracymum, I love you!

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  32. llew (1,532) Says:

    I think you will find freethinker is thinking what a lot of people are thinking

    SF? I heard it was LA, Bangkok & several capitals in Europe! And at first it involved MFAT officials being sent to rescue him, then ambassadors, then the Chief Justice. The story changed more often than Winston’s.

    I have more faith in the Sensing Bullshit psychics than purveyors of this rumour.

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  33. burt (5,936) Says:

    llew

    If Winston has been involved in covering this up then of course the story keeps changing. What else would you expect?

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  34. llew (1,532) Says:

    :)

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  35. Gravyman62 (37) Says:

    This only makes sense if you believe NZ1 is polling at 5% or above. If one lurches over to the Standard, you will find just that. Labour seriously believes that NZ1 is at that level.Combine this with the belief that National isn’t actually polling at greater than 50% and you can see the basis of the behaviour. Labour’s usual half- assed advice isn’t about to change and will ultimately cost them this and the next election.

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  36. llew (1,532) Says:

    This only makes sense if you believe NZ1 is polling at 5% or above.

    That’s as unbelievable as France beating the All Blacks in the quarterfinals of the World Cup.

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  37. Gravyman62 (37) Says:

    That took a wonky ref too!

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  38. Don the Kiwi (958) Says:

    llew.

    :lol:

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  39. DJP6-25 (1,100) Says:

    That sounds like a pretty good explanation democracymum. It fits with how she conducted the last campaign.

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