Christchurch mayor Lianne Dalziel initially listed her husband as the sole donor at a fundraising dinner and auction held in July.

It has been a week in the spotlight for the mayor of Christchurch, the city council's electoral officer, and a modest Chinese restaurant.

As the week began, Christchurch mayor Lianne Dalziel was accused by election rival John Minto of "skirting around the law" over her mayoral campaign expenses.

When Dalziel was fundraising for her mayoral campaign this year, $40,100 came from a dinner and wine auction at the Southern Asia Restaurant in Colombo St organised by her husband, lawyer Rob Davidson.

Davidson had donated the wine, and Dalziel identified him alone as a donor at that event despite some bidders paying high prices for bottles.

READ MORE:

* Christchurch mayor Lianne Dalziel's donors revealed

* Two Marlborough council candidates reported to police over election expenses

* Christchurch mayor Lianne Dalziel to release further details on election returns

* Christchurch mayor Lianne Dalziel accused of keeping 'voters in the dark' over campaign donors

John Kirk-Anderson/Stuff Dalziel's fundraising dinner was held at Southern Asia Restaurant, on Colombo St, in July.

Under the Local Electoral Act, all local authority candidates must file a return of their campaign expenses within 55 days, disclosing donors who contribute more than $1500.

After Minto's claims, Dalziel told media she had nothing to hide but said she would check her return and make immediate adjustments if needed.

By Wednesday, electoral officer Jo Daly confirmed Dalziel had updated her election return with the names of six donors. All are Chinese businessmen with either New Zealand residency or citizenship, friends of Davidson or of the couple.

The largest donor was Wei Min Lu, who paid $17,000 for wine – more than 11 times the $1500 limit that must be declared under the Act.

Dalziel said on Thursday she took Davidson's advice on what she was required to declare. She then said she regretted not taking independent advice on her election return.

The law sets out legal penalties – including fines and imprisonment – for any local authority candidates breaking rules covering campaign expenses and larger donations. These include failing to file returns on time, filing false returns, and otherwise failing to follow the rules of disclosure either willfully or otherwise.

A list of donors who spent more than $1500 at a fundraising dinner and auction held for Dalziel in July.

Under the Act, electoral officers must investigate possible offences and report them to police.

Minto has now called for Daly to investigate not only Dalziel's 2019 election expense declarations, but also those from 2016.

Dalziel raised money for her 2016 and 2013 mayoral campaign through other fundraising auctions with items donated by Davidson.

She listed a single donation of $25,350 by Davidson from an auction in her 2016 election return and did not include details of any donors contributing over $1500.

Daly, who was also Christchurch's electoral officer in 2016, previously said she had no reason to believe Dalziel's 2016 return did not comply with the legislation.

SUPPLIED A booklet given to guests at Dalziel's 2019 election fundraiser dinner, featuring 19 items for sale.

FALLING FOUL

Dalziel is not the first Kiwi mayor whose campaign donors have attracted scrutiny after a fundraising auction at a Chinese restaurant.

In September, during the Auckland election campaign, a formal complaint was laid over mayor Phil Goff's previous expense declaration from 2016, and passed on to police by the electoral officer. No further action has yet followed.

The complaint relates to the declaration of cash donations from fundraising auction at a Chinese restaurant in Ellerslie, where a bidder on the phone from China paid $150,000 for a book signed by Chinese President Xi Jinping. Bottled wine was also sold at the auction.

Goff's 2016 return did not breakdown the amounts, but he later disclosed the names of the major buyers, including the book purchaser who was a Chinese national resident in New Zealand.

Todd Niall/Stuff Auckland mayor Phil Goff has also raised campaign funds at auction.

For this year's election, where Goff was re-elected, his expenses return listed each relevant purchase and buyers' details from another fundraising auction.

Meanwhile in Marlborough, two council candidates from this year's election could face police prosecution for not filing their expense declarations by the deadline, despite reminders.

Mayoral candidate Rick Ireland and Blenheim ward candidate Phil Skinner failed to file their returns, an offence that can lead to a fine of up to $1000.

Marlborough electoral officer Dean Heiford said he was required to report the offences to police and provide them with details of any relevant inquiries.

"It's up to them [the police] to see if they do any prosecution action," he said.

Ireland has blamed a "frantic schedule" for missing the deadline, while Skinner has not commented.

New Waimakariri mayor Dan Gordon was found guilty in 2008 on two charges of filing a false return while campaigning for a spot on council. The charges related to a $10,000 donation listed as a $5000 donation, and Gordon was discharged without conviction.

Former Auckland mayor and ACT Party head John Banks was one prominent politician prosecuted over local body campaign expenses.

Waimakariri mayoral hopeful Dan Gordon fell foul of the electoral return rules back in 2008.

After Banks' unsuccessful mayoralty re-election campaign in 2010, police investigated him over his donation returns but opted not to lay charges.

Internet entrepreneur Kim Dotcom alleged that during the mayoral campaign, Banks asked him to split a $50,000 donation in two so each cheque would be small enough to not have the donor named.

In 2013, Banks was charged with knowingly filing an incorrect electoral return and, by then a Cabinet minister, resigned his Cabinet portfolios.

He was found guilty by the High Court in 2014, but his conviction was overturned on appeal. More evidence emerged in 2015 but no retrial was ordered.

JASON DORDAY/STUFF Former Auckland mayor and ACT leader John Banks was convicted but later acquitted on electoral charges.

OVERSEAS DONORS

A recent report by the Justice Select Committee inquiry into the 2017 general election and the 2016 local government election warned foreign interference was an important issue in local elections.

"Councils must be vigilant in this area. Senior local government elected officials are at risk from foreign interference by foreign state actors and should be aware of this," the report says.

Relationships with overseas governments, states and local government entities, including through sister city relationships were to "be encouraged as part of New Zealand being outward-looking and engaged with the world".

"Our concerns are for those relationships that may involve inappropriate foreign influence activities," it says.

In response to the inquiry the Government passed an amendment under urgency limiting the amount of foreign donations to no more than $50.

But the amendment to the Electoral Act 1993 does not apply to local elections, which are ruled by the Local Electoral Act and does not require any donor to be a New Zealand citizen or resident.

The report recommended the Government align local and general election provisions on anonymous, overseas, and corporate donations

In response to a question from Stuff about the Government's response to these recommendations, Local Government Minister Nanaia Mahuta said they were considering the recommendations and were required to table a response in Parliament by March 26.

supplied Lianne Dalziel in 2018 with Jiang Ping (JP) Wang, who contributed to her mayoral campaign this year.

TRANSPARENCY IN OFFICE

University of Otago political and legal commentator Professor Andrew Geddis says Dalziel, as an experienced politician, should have known the rules about disclosing campaign donations.

"If you're running for high office as the mayor of the second biggest city in the country, it's incumbent on you to know the rules you're competing under," he said this week.

Local candidates received information about the disclosure requirements on a website and in a booklet, which included how to determine what portion of an auction sale should be considered a donation.

Dalziel, a former lawyer and union secretary, has 30 years of political experience including senior Cabinet posts during her 23 years in Parliament and is now in her third term as Christchurch mayor.

She has several times been under scrutiny over what she has or has not revealed.

Back in 2004 Dalziel, then immigration minister, resigned her post under pressure from the Opposition and media over a letter leaked about an asylum seeker.

She first denied knowing the source of the leak, then denied being responsible, then said she knew the leaker was a staff member, and finally admitted she had directed the staffer to release the letter to one media outlet and passed it to another herself.

Stacy Squires/Stuff Christchurch City Council's electoral officer is looking into the expense returns of the mayor and other electoral candidates.

In March this year it was revealed that her husband's law firm represented water bottler Cloud Ocean and had offered to use his personal contacts to lobby politicians over water consent applications.

The mayor said she had "never" been approached by her husband lobbying for his clients and that she had always managed conflicts of interest ethically, saying: "We have clear boundaries and we have always maintained them."

She then conceded there had been a conflict of interest over her knowledge about her husband's work, admitting she should have told colleagues and that it was something she "should have managed".

The finger was also pointed at Dalziel last month in an ombudsman's report into the city council's handling of public information. The report, which followed a 10-month investigation, revealed a culture of secrecy, deception and cover-ups inside council offices.

While much of the criticism involved senior staff keeping matters from elected representatives, the report said Dalziel having an advisor at meetings about Official Information Act requests could be seen as possible political interference.

On the ombudsman's request, Dalziel no longer has an advisor attend.

IAIN MCGREGOR/STUFF Lianne Dalziel was re-elected Mayor of Christchurch in 2019.

WHAT HAPPENS NOW?

As the week ended Daly said she was considering Dalziel's campaign expenses return and compliance with the law, and would be "seeking advice if required".

She expected this process would take until mid-January.

Daly said "a number of" candidates did not have their expense returns lodged by the December 13 deadline but most had filed them since.