Race Relations Commissioner Meng Foon is in the gun after revelations he gave significant financial support to Labour MP Kiri Allan in the lead up to the 2020 election.
Allan is also facing questions over whether she properly declared any conflicts of interest regarding the donations when she was promoted to Justice Minister.
Foon was appointed to his role at the Human Rights Commission in 2019 by then-Justice Minister Andrew Little and is expected to be independent of the government.
In 2021, Allan declared donations for the year before, including $1500 from Foon and his wife Ying Foon.
The return also shows company Triple Eight Investments - which was partially owned by the couple - provided the East Coast MP with a rent subsidy worth $9185.
The Act Party is demanding Foon be sacked, while the National Party wants Allan to front up with a greater explanation.
Approached for comment, Foon directed RNZ to the Human Rights Commission.
In a statement, the Commission said Foon served multiple terms as Gisborne mayor, "a local community to which he has demonstrated a deep commitment and in which he holds a unique position".
"The appointment of a person to the role of a Human Rights Commissioner after having held previous public roles always requires careful management. While the Commission does not make such appointments, it takes the issue of neutrality extremely seriously.
"The media reports will be carefully assessed and no further public comment is planned at this stage."
Speaking to Newshub, Foon said he was "comfortable" with his actions and did not regret the former donations.
"Regardless of which role, it has been a family tradition to support left and right parties," Foon said.
Foon told Newshub he also donated to National's East Coast candidate, Tania Tapsell, in 2020. The National Party confirmed the contribution but described it as a "modest sum" beneath the $1500 declaration threshold.
Confronted on Friday, Allan denied taking any monetary donations from Foon but acknowledged he did provide her with "an office space" in 2020.
She told reporters she was "pretty comfortable" with the arrangement.
"It was well disclosed. It was his wife's shop, it was an empty shop that they owned on the main drag. We paid some nominal sum per week, and that's all been declared."
Allan stressed she had nothing to do with Foon's appointment. As Justice Minister now though, Allan would be responsible for his reappointment.
She said she would check whether she had declared a conflict of interest when she was promoted to Cabinet.
"I assume that everything that's in my donation declarations has been declared.
"Anything that's required to declare for Cabinet, we have intensive discussions about that... but I'll go and check."
Allan issued the following statement later on Friday afternoon:
"I spoke earlier about having received and declared an in-kind donation from the Foon family in 2020 when I was a back bench MP.
"It is fair to say I couldn't recall all of the details of all of my donors when questioned earlier, but having had the opportunity to review I can say I also declared a $1,500 cash donation from Meng and Ying Foon in 2020 as well. The in-kind donation I referred to was from a company that the Foons were directors of, for a rent subsidy on a campaign office space. This was a campaign office, not an electorate office, and no parliamentary funds were used.
"All donations I've received have been accurately and appropriately reported as required by the Electoral Act, and have been publicly available online since 2021," Allan said.
"This afternoon I've also updated my conflict of interest information on this matter to provide absolute transparency, which now includes both Meng Foon and Ying Foon, as perceived conflicts of interests.
"I'm confident there haven't been any decisions I've been involved in where this conflict would need to have been managed."
Alerted to the donation, Prime Minister Chris Hipkins said he felt uncomfortable with people in such "public advocacy roles" donating politically but would like more time to consider the details.
"I'd want to think about that a bit more. But I do think that people holding those roles need to be seen to be politically impartial."
Hipkins said, with his limited knowledge of the situation, Allan's handling of the matter did not raise any immediate red flags.
"The conflict of interest process, involving the Cabinet Office, does look at things like political donations, for example, so that if someone who's made a political donation comes up for appointment a minister who has a conflict would be excused from participating in that process."
Speaking to RNZ, Act leader David Seymour said it was "completely untenable" for Foon to remain in the role given the requirement he be politically neutral.
"I'm absolutely astonished by this... you can't be backing one side or the other financially in a role like that."
Seymour said Allan also needed to explain whether she had recused herself from any and all dealings with the commissioner.
"The whole thing is an absolute circus in the Beehive."
National's justice spokesperson Paul Goldsmith was also critical of Allan's management of the perceived conflict of interest.
"It's a second strike offence. The prime minister needs to go right into the details of this and make sure these things are handled better."
Asked about Foon's donations to both Labour and National, Goldsmith said it demonstrated "poor judgment" and made the commissioner's job "difficult".
"I don't think it's a good idea [for the commissioner] to be donating to parties, full stop."