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WELLINGTON : New Zealand Foreign Minister Winston Peters has agreed to temporarily stand down during a fraud investigation into political donations to his political party, Prime Minister Helen Clark said Friday.
Clark said she would take over Peters' portfolios of foreign affairs, racing and associate senior citizens during the Serious Fraud Squad (SFO) investigation.
"Mr Peters has offered to step aside. Obviously I've accepted that offer and I in the meantime assume the portfolios he holds," Clark told reporters in Auckland.
"It is to be hoped that the SFO will address there matters expeditiously."
Peters was offering his total cooperation to the SFO and his lawyers would meet investigators on Saturday, she added.
The SFO said Thursday it would launch an investigation into whether funds donated to Peters' populist New Zealand First party were used as intended.
Earlier Friday Peters was defiant, saying he would provide proof to Clark to show there had been no misuse of the donations.
The announcement of the fraud investigation followed weeks of controversy surrounding Peters over large donations from business benefactors.
Clark appointed Peters foreign minister in 2005 in return for support of her minority Labour Party government, and she has been under pressure to suspend him until questions over the donations are answered.
SFO director Grant Liddell said the inquiry would focus on a donation from property millionaire Sir Robert Jones of 25,000 NZ dollars (17,650 US), and a number of donations for just under 10,000 dollars from the wealthy Vela family.
- AFP/vm
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