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New Zealand First leader Winston Peters says the Serious Fraud Office (SFO) has exceeded its powers by giving evidence to Parliament's privileges committee.
The committee is looking into a $100,000 donation from billionaire Owen Glenn for Mr Peters' legal fees.
Behind closed doors today it considered SFO evidence relating to Mr Peters' claim he paid back his lawyer $40,000 in court-ordered costs from his failed Tauranga electoral petition.
The SFO is holding a separate inquiry into two other donations to NZ First.
Mr Peters said section 39 of the Serious Fraud Act precluded the SFO's actions.
"What they've done is totally ultra vires (beyond its powers) and they've done it with malice in my view and I will set out to prove it."
But SFO director Grant Liddell rejected Mr Peters' allegations the investigation into NZ First donations was retribution for the party wanting his office shutdown.
"I reject any suggestion that there has been a misuse of the statutory powers I have as a director," Mr Liddell said.
Mr Peters emerged from Parliament's privileges committee saying he didn't get a fair hearing because the media were not allowed in to hear him.
"Having not been able to find a darn thing wrong, as Mr Hide alleged, they have sneaked into this committee to try and save their skins here," Mr Peters said of the SFO..
Mr Peters would not say what evidence the SFO produced, saying he was gagged by the process.
Mr Peters today tried to table a letter from the SFO, which he said proved the organisation was biased against him.
An angry SFO staffer wrote to New Zealand First MP Ron Mark last month attacking his role in approving legislation that would merge the office with the police.
Mr Liddell said he had not seen the letter in question, but would take immediate action to determine whether it came from a SFO staff member.
NZ First today released the letter, which it said came in an envelope carrying the stamped post-office box number of the SFO's Auckland office.
Its writer says SFO staff believed Mr Mark would inject "integrity, some honesty and most of all, some courage" into the decision-making process.
"Now, last Friday, we learned that you decided to kick for touch and voted to get rid of the one agency that could properly investigate and prosecute serious or complex fraud in this country.
"Mr Mark, New Zealand's white-collar criminals are laughing. The one agency that they feared might hold them to account is to be closed; destroyed by the vote of someone who needed to demonstrate and champion the qualities of integrity and courage that those within the SFO admire so much."
Mr Peters said the SFO was "now engaged in what is a totally political action designed to secure their survival".
The SFO inquiry has been centred on the Spencer Trust, which has been a secret source of funding for undeclared donations for the party.
The privileges committee inquiry is centred on a $100,000 donation from billionaire Owen Glenn to pay for Mr Peters' legal fees for the Tauranga electoral petition in 2005.
Mr Glenn provided phone and email records to support his claim that Mr Peters had sought the money.
The committee's report is due out next week.
- NZPA, NEWSTALK ZB, NZ HERALD STAFF
