Prime Minister Helen Clark has subjected the public and Parliament to a series of calculated mistruths over the $100,000 donation by Monaco-based businessman Owen Glenn, says National.
On Tuesday, Mr Glenn gave Parliament's Privileges Committee phone records, emails and an affadavit that he said backed his version of events surrounding the donation towards the legal costs of an electoral petition brought by New Zealand First Party leader Winston Peters in 2006.
National deputy leader Bill English told Morning Report that Mr Glenn's evidence placed Miss Clark and Labour Party president Mike Williams at the centre of the saga.
Mr English said Miss Clark was procrastinating and clearly did not know what to do because she could not sack Mr Peters for taking a donation when Labour helped to arangee it, nor for keeping it a secret when she kept it a secret herself.
Miss Clark has revealed that she has known of the donation since February.
She said on Tuesday that Mr Glenn's evidence was disturbing and she would keep a close watch on developments.
Mr Peters is to make his third appearance before Parliament's Privileges Committee on Wednesday night.