New Zealand Deputy Prime Minister Winston Peters has dismissed calls to step down as an official investigation is launched into a fundraising arm of his party.
Prime Minister Jacinda Ardern is standing by the beleaguered New Zealand First leader, despite calling on the 74-year-old to give proper explanations of his party's murky behaviour.
On Tuesday, the Serious Fraud Office said it had launched an investigation into New Zealand First Foundation over party donations.
The Electoral Commission had referred the case, suggesting the donations should have been declared as per electoral law.
The opposition National party has called on Mr Peters to step down.
On his way into parliament on Tuesday, the 74-year-old laughed off the idea.
"Why would I do that? Sorry sunshine," he said.
"We welcome (the investigation). We want the truth to be out there."
On his way out of the chamber, he stopped and played 'Radio Ga Ga' by Queen on his phone to journalists before walking away.
Mr Peters has repeatedly evaded questions on his party's fundraising foundation despite a number of reports that suggest illegalities or the potential for conflicts of interest.
That includes the alleged receipt of donations from several racing industry figures. Mr Peters is the Racing Minister.
Radio NZ has also reported that one of the foundation's two trustees, Doug Woolerton, is a lobbyist who pushed for law reform that would have benefited a party donor.
Mr Peters steadfastly refuses to engage on any particular issue, instead resorting to posting videos to Facebook.
In a reply on Tuesday afternoon, Mr Peters labelled the reporting a "smear campaign" based on stolen information as part of a "deliberate attempt being made to take New Zealand First down".
While these accusations could cripple New Zealand First and damage Mr Peters, it's also bad news for Ms Ardern in an election year.
Ms Ardern's Labour party is in government thanks to a coalition agreement with the minor party, and their electoral fates could be intertwined.
She is hoping Kiwis - which are used to minor parties in government under New Zealand's mixed-member proportional (MMP) system - will distinguish between their behaviours when voting on September 19.
"In an MMP environment we have to be really clear. Political parties need to take responsibilities for themselves," Ms Ardern said.
"My role, and I take it very seriously, is the conduct of the Labour Party.
"New Zealand First has to take responsibility for their members."
Opposition leader Simon Bridges said Ms Ardern was "complicit by her see no evil, hear no evil approach".
Complicating matters further, Mr Bridges' National party has also been investigated by the Serious Fraud Office, with four people being charged over undeclared donations.
Those people have been granted name suppression, but Mr Bridges says no MP or National office holder has been charged with offences.
Australian Associated Press
