Fresh Allegations of Undeclared Spending Rock Wellington Election Campaign

Leaked bank statements have raised serious questions regarding the campaign spending of Wellington City councillor Ray Chung and his political group, Independent Together (IT). The documents, obtained by local media, indicate that significant amounts of money may have been undeclared during the lead-up to the local elections held on October 13, 2023.

The bank statements reveal a timeline starting from March, when the group’s account was opened, through a series of large donations in April after the launch of their key policies. They extend to just two weeks after the election. Although Chung, who unsuccessfully ran for mayor, was the only IT candidate to secure a council seat, questions persist about the transparency of their financial dealings.

A notable discrepancy involves a claimed $40,000 donation from property developer Vlad Barbalich. During a debate, Chung attributed this contribution to Barbalich, who has previously supported the freedom party DemocracyNZ and is now aligned with NZ First. However, this donation does not appear in the provided bank statements or official declarations.

Additionally, expenses related to the IT headquarters in central Wellington, located at the intersection of Wakefield and Chaffers Streets and owned by Barbalich through his company, Messenger Holdings, are also unaccounted for.

The documents indicate that IT spent $36,777 with billboard company Jolly and $17,434 with software development firm Bidbuy. In contrast, the total declared spending for IT candidates, alongside the supporting group Better Wellington, amounted to just $6,913 with Jolly and $11,695 with Bidbuy.

According to election regulations, all campaign expenditures during the designated three-month period must be reported. If spending occurs outside this timeframe but benefits the campaign within the period, it must be proportionately declared. For instance, a billboard that runs in the final months of the campaign would require a majority of its cost to be reported. Donations provided in-kind must also be declared at a “reasonable market value.”

Candidates who knowingly exceed the spending limits, which are set at $60,000 for mayoral candidates and between $20,000 and $30,000 for ward candidates, face severe penalties, including potential imprisonment for up to two years or fines reaching $10,000. Unintentional breaches can result in fines of up to $5,000.

Chung has distanced himself from the financial management of the campaign, stating he “didn’t have anything to do with how any of the donations were spent.” He later acknowledged that he was mistaken about the claimed donation from Barbalich during the debate.

Local Government Minister Simon Watts expressed concern regarding the allegations, emphasizing the importance of maintaining the integrity of the electoral process. He indicated that any breaches should be reported to the police, stating: “I cannot intervene in how an election is run or in enforcement decisions. However, I am closely monitoring the situation to ensure the integrity of the electoral process is upheld.”

Green councillor Rebecca Matthews remarked that the IT campaign appeared to have spent more than any other Wellington mayoral campaign in 2025. She highlighted that the bank statements left many questions unanswered regarding proper accounting for expenditures. “The rules are there for a reason and it’s the responsibility of every candidate and party to follow them openly and transparently,” she said.

Former Wellington mayor and Green Party Local Government spokesperson Celia Wade-Brown criticized the potential impact of undisclosed donations on electoral transparency. She stated, “Large undisclosed donations reduce transparency. Breaching the spending limits or under-reporting, as may have occurred here, is unfair and undemocratic.”

Labour MP Rachel Brooking reinforced the necessity for compliance with electoral laws to ensure public trust and transparency in the electoral process.

Electoral officer Warwick Lampp noted that he had not received any formal complaints regarding IT’s financial declarations but indicated he would refer any received to the police. As of now, law enforcement agencies have not confirmed whether any complaints have been filed.

The developing situation continues to unfold, leaving many in Wellington questioning the integrity of the electoral process and the adherence to campaign finance laws.