On 29 August 2008 he stood down as a Minister pending a police investigation into a funding scandal involving Peters and New Zealand First.

After the funding scandal, the government turned down a request for an additional $10 million to keep the company running.

Another agricultural minister, Norihiko Akagi, who was involved in a political funding scandal, resigned after the election.

Almost immediately, the Government parties became involved in a protracted funding scandal, having apparently used public money for party political purposes during the election campaign.

As the funding scandal broke, there were fresh allegations of police and army involvement in the conflict between supporters of Inkatha and the ANC.

Watt became embroiled in the funding scandals of 2007 and resigned soon after.

Barrot, a returning Commissioner nominated as a Vice-President with the Transport portfolio, had received a suspended prison sentence in 2000 in relation to a funding scandal involving his political party.

Every funding scandal, every politician found to be corrupt, adds more wind to these parties' sails.

In 2007, a funding scandal developed after it emerged that she had accepted an illegal donation from Paul Green, a property magnate, a matter that was investigated by the Electoral Commission.

Kelly warned in November that another funding scandal is inevitable unless the political parties show some leadership and back radical changes, including the £10,000 annual cap.