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The Labour Party's most powerful backroom operator, its president Mike Williams, has nearly quit in election year as fallout rages on over funding from billionaire donor Owen Glenn.
For Prime Minister Helen Clark, Williams is a leading light in her Labour line up. But the saga involving Glenn has forced Williams to tender his resignation, something Clark is refusing to accept.
Clark attended the opening of the University of Auckland Business School in Owen Glenn's name on Thursday night.
She says Williams made a genuine mistake over his handling of
donations made by Glenn.
The transport tycoon gave $500,000 to Labour before the 2005
election.
So questions were raised when Glenn received an award in the latest
New Year's Honours list.
Williams said back then that Glenn had given no more donations
to the Labour Party. But that wasn't strictly true as he had gifted
Labour a $100,000 interest free loan.
It then emerged that Glenn was being considered for the position of
New Zealand's Honorary Consul to Monaco.
"Why would the appointment of a diplomatic representative of New Zealand be a matter that is discussed with Labour's chief fundraiser Mike Williams unless it is connected to a donation of half a million dollars from Owen Glenn," asks Bill English, National deputy leader.
The Monaco appointment is being considered by Foreign Minister and New Zealand First leader Winston Peters, whose party has also been dragged into the row by a suggestion that an anonymous donation of up to $100,000 came from Glenn.
Peters is reported to be furious with NZ First President and MP Dail Jones over the release of details about the anonymous donation.
Deputy Prime Minister Michael Cullen says at least Labour's donors have been upfront, unlike National's.
"Because they were all funded through something called the Waitemata Trust some $2.3 million which was handled by a man who that government did appoint to chair government quangos and boards," says Cullen.
Williams was not commenting on Thursday, leaving the talking to Labour's chief wit.
"Mr Williams made an honest mistake. Armed with that Mr English is trying to build a great pile of something large, smelly and brown and it just won't wash," says Cullen.
That may be so, but in politics mud can stick and Labour must be
wondering whether Glenn's money was worth the
trouble.
