Colin Craig's former press secretary has told a court she was put under financial pressure to sleep with her boss.
Rachel MacGregor is giving evidence in the High Court in Auckland, where Mr Craig and the blogger Cameron Slater are suing each other for defamation.
Ms MacGregor told the court the former head of the Conservative Party did not pay for the work she invoiced for.
Instead he paid her advances because they could not agree on her hourly rate.
He also gave her an $18,000 loan that included interest at 29 percent. Mr Craig began charging her interest once she left her job.
Ms MacGregor told the court Mr Craig was trying to put her under financial pressure so she would sleep with him.
She said it was also convenient he had deleted text messages that would disgust the court and the New Zealand public if they were revealed.