Billionaire Labour Party donor Owen Glenn has caused embarrassment by suggesting he was offered a Cabinet position by the Prime Minister.
Helen Clark denies that, and has also scotched the suggestion that his generosity to Labour saw him named on the New Year's honours list.
Back in 2003, Glenn reportedly told a newspaper that Helen Clark suggested he could have a future in her Cabinet. He says this is not true and comments on the matter to a newspaper reporter were lighthearted and taken out of context. Clark also denies making the offer. She says there is no way it was in her power to offer a Labour Party donor a job in her cabinet.
Auckland University's business school opens this week, partly thanks a $7.5 million donation by Glenn. But it is his $500,000 donation to Labour made before the 2005 election which is raising questions.
It is public knowledge that Glenn received a New Year's honour six weeks ago. Labour said at the time that he had not given any more donations to the party since the money donated before the 2005 election.
National says that is not quite true.
National Deputy Leader, Bill English says it appears there have been many contradictory statements made by Glenn and Labour Party bosses.
"Owen Glenn had made an interest free loan of $100,000 & that is a donation to a political party," says English.
Labour used the money to hire fundraisers to help them pay back
the $800,000 unlawfully spent on advertising at the 2003 election,
but they didn't plan on declaring it.
"The best advice was that the value was the foregone interest of
about seven or eight thousand dollars which under the 1993
electoral act didn't need to be reported," says Labour Party
President Mike Williams
Helen Clark says transparency is always the best policy.
So did the $500,000 in donations and the $100,000 interest free
loan have any bearing on Glenn getting a New Year's Honour?
Helen Clark says of course not.
"The reason for him getting an honour relates to the extraordinary generosity to the University of Auckland."
