Donations from internet tycoon and piracy accused Kim Dotcom to ACT MP John Banks were deposited in Queenstown so it would appear they had come from "as far away as possible", the man who banked them is reported to have said.
Dotcom put $50,000 into Mr Banks' campaign fund for the Auckland mayoralty in 2010, in two cheques made out for $25,000.
Police are investigating whether Mr Banks knew where they came from, because he listed them in his election return as anonymous.
Under the Local Electoral Act, candidates must declare the source of donations if they knew where they came from.
Dotcom's former employee, who didn't want to be named, told the Dominion Post he personally wrote out the cheques on the account of Megastuff, the Megaupload founder's company.
He also said Mr Banks called Dotcom's bodyguard Wayne Tempero to say thank you for the donations - which Mr Banks has denied doing.
"I got a phone call from Wayne saying the funds had gone in because John phoned to thank him. You don't have to be a genius to figure out that (Mr Banks) knew," the former employee said.
Mr Banks has told Prime Minister John Key he didn't know who made the donations, and Mr Key has taken him at his word.
Mr Key is rejecting opposition demands for Mr Banks to be stood down from his ministerial portfolios while the police inquiry is under way.
Mr Banks has also rejected claims from Labour MP Trevor Mallard that Dotcom organised a discount for him to stay at a hotel in Hong Kong last December.
NZN