Rotorua Green Party candidate Richard Gillies says he is disappointed two of the party's MPs have quit caucus, but supports under-fire Metiria Turei remaining as co-leader.
Kennedy Graham and David Clendon quit in protest this week over Ms Turei's refusal to step down, saying her position was "untenable".
The move follows Ms Turei admitting lying to Work & Income while she was on the Domestic Purposes Benefit, and giving a false address to the Electorial Commission in the 1990s.
The two will stay on as MPs until the election, but will not take part in any caucus events or campaigning.
Mr Gillies said he was disappointed Mr Graham and Mr Clendon had withdrawn but he respected their "right to dissent" and had "nothing but appreciation for their hard work and contributions as MPs over their years of service".
Ms Turei was defiant this afternoon after a lengthy caucus meeting.
She said there was nothing that would make her step down as co-leader before the September 23 election.
Mr Gillies said he was "fully supportive" of Ms Turei remaining as co-leader.
"Her frank admission of welfare fraud as a young, struggling solo mother was courageous and, along with the Greens' families policy that she launched, has sparked an intense national debate on what it means to live in poverty, and what role an affluent society such as ours should play in order to end it.
"Personal judgments about things someone did in their formative youth are irrelevant, and the electorate at large will form its own opinion."
Mr Gillies said there was "no doubt" the Greens' social policies had received a lot of media air time in recent weeks, and there was plenty more of the election campaign to run.
"The Greens are absolutely focused on clean water, preserving our environment and creating a country where all families can thrive. No other party in Parliament is as committed to reducing our national carbon emissions, and protecting future generations from the impacts of climate change."