Parker complaint will not stop re-entry to Cabinet

Prime Minister Helen Clark says a complaint has been made to the Otago Law Society about her former minister David Parker, but it will not prevent his re-entry to Cabinet this week.

Last week, Mr Parker was cleared by the Companies Office of filing false documents.

Mr Parker was the subject of an Investigate magazine story involving an allegation by a former business associate of Mr Parker, Dunedin property developer Russell Hyslop.

Helen Clark said today Mr Hyslop remained angry about events.

"I understand the aggrieved former business partner has his complaint into the Otago Law Society, but if it's got as much substance as the one that went on to the Companies Office, it wouldn't be causing anyone to lose sleep," Helen Clark told Television New Zealand.

The Prime Minister said she would be recommending to her caucus tomorrow that Mr Parker be reinstated to Cabinet, but would not be drawn on what portfolios he might be given.


Mr Parker resigned his portfolios -- those of Attorney-General, energy, transport and climate change -- when the allegations of filing false document first surfaced in March.

He said it had been impossible to stay on as Attorney-General -- the highest law officer -- while he was being investigated for breaking the law.

The accusations stemmed from the late 1990s, when Mr Hyslop was a partner in a company called Queens Park Mews Ltd. The other partners were Mr Parker and his father, Francis Parker. They each held one third of the shares.

According to Mr Hyslop, Mr Parker filed a declaration to the Companies Office stating that the shareholders of Queens Park Mews Ltd decided unanimously not to appoint an auditor.

Mr Hyslop said he was never asked to approve the "unanimous" decision, and the declaration was, therefore, false.

The Companies Office said there was "no basis whatsoever" for taking a prosecution against Mr Parker for filing a false or misleading document.

This was because Mr Hyslop had at first agreed to the audit waiver and after he was declared bankrupt the Official Assignee gave an audit waiver.

Legal advice to the Companies Office said it was an "interesting legal point" whether the waiver was "effective" but it was not material to the case because permission had been granted to not audit the failed and virtually worthless company.

At one point, the Official Assignee offered to sell the shares for $1. Mr Parker accepted the deal but it was never completed.

Investigate publisher Ian Wishart has said the Companies Office investigation was "seriously flawed".

- NZPA