Monaco-based businessman Owen Glenn has told Parliament's Privileges Committee that New Zealand First leader Winston Peters personally asked him for a donation.
Mr Glenn appeared before the committee on Tuesday regarding his donation of $100,000 toward legal expenses incurred by Mr Peters.
The committee is considering whether Mr Peters should have declared the Mr Glenn's donation toward the cost of an electoral petition in Tauranga after the 2005 election. Mr Peters claimed that National Party MP Bob Clarkson had overspent on his successful campaign.
Mr Glenn says it was Mr Peters who personally asked him for a donation, while Mr Peters maintains the approach was made by his lawyer.
Mr Glenn told the committee on Tuesday he had brought with him copies of emails and telephone records to back his version of events.
He said he rang Mr Peters in December 2005 to inform him that he agreed to contribute $100,000 to the New Zealand First leader's legal costs.
The businessman was asked by Labour members on the privileges committee if he was sure it was Mr Peters on the line. Mr Glenn replied he had no doubt that it was Mr Peters.
Mr Glenn presented the committee with a copy of an email he received from Mr Peters' lawyer Brian Henry shortly after the telephone conversation. In that, Mr Henry said he was emailing to provide bank account details, following Mr Glenn's conversation with "his client".
Mr Glenn also presented the committee with an affidavit from his racing manager Paul Moroney, who said he was present at lunch in Karaka in January 2006 where Mr Peters thanked Mr Glenn for his "help" to him.
Mr Peters maintains he was unaware of the donation until July this year, after he was told about it by Mr Henry.
The privileges committee is continuing its hearings and will hear from Mr Peters again on Wednesday evening. He has stood aside from his portfolio responsibilities, including Foreign Affairs Minister, but remains on a ministerial salary.
Difficult position for MPs, says Clark
On Tuesday, Prime Minister Helen Clark told Parliament that National Party MPs on the privileges committee have been put in a difficult position by their leader.
Miss Clark told the House that National's leader John Key has already made up his mind that Mr Peters is guilty.
Earlier on Tuesday, Mr Key said Mr Peters should be sacked as a minister outright, if Mr Glenn can prove his account of his donation to Mr Peters' legal costs.
However, Miss Clark said she would not prejudge the outcome of the privileges committee.
She said there are a "whole lot of processes" going on surrounding New Zealand First's handling of donations, and she is waiting to see what develops.
Party sought advice from commission - Peters
Mr Peters says New Zealand First approached the Electoral Commission for advice before filing its 2007 return of donations.
Police are investigating the nil-return, after it emerged that the Spencer Trust paid $80,000 to New Zealand First in December 2007. A complaint was laid last week over the matter.
Mr Peters said the money was made up of eight separate cheques, each of which was under the $10,000 disclosable amount. He would not say where the money came from.
Mr Peters said the Electoral Commission told the party to take legal advice, which it did, before filing a nil-return.
The commission announced on Monday it is requiring New Zealand First to produce its promised amended party donations for 2005, 2006 and 2007 by the end of September.
It also wants the party's accompanying auditor's reports and a more detailed explanation as to why amended returns now have to be filed.