Colin Craig admits inappropriate conduct with Rachel MacGregor

  • Breaking
  • 22/06/2015

By Jacob Brown and Angela Beswick

Colin Craig's former press secretary Rachel MacGregor has accused him of breaching a confidentiality agreement reached during a Human Rights Commission mediation.

Earlier this afternoon, Mr Craig finally responded to allegations of sexual harassment, admitting his conduct with his former press secretary was inappropriate - but says he didn't harass anyone.

Mr Craig, who stood down as leader of the Conservative Party last week pending a review, would not give further details about the "wild speculations and allegations" in the media regarding his relationship with Rachel MacGregor.

Accompanied by his wife Helen, Mr Craig fronted a press conference on Auckland's North Shore this afternoon, criticising what he called media "mischief-making" in recent days.

"I have previously met with Ms MacGregor and we have resolved outstanding matters. However, a lack of detail to media has resulted in some people filling in the gaps very creatively," he said.

Mr Craig denied sexually harassing Ms McGregor, but did give details about financial matters between the pair.

"I have said on previous occasions that my working relationship with Ms MacGregor was positive and constructive. I am grateful for the work that she did with the party and her assistance in handling the media," he said.

"In hindsight, on some occasions, our conduct was inappropriate and we have acknowledged that so that we can both move on.

"Let me make it very clear; I have never sexually harassed anyone, and any allegations to the contrary are wrong."

Mr Craig said there was an "invoice dispute" over $50,000 payable to Macgregor.

"Of this amount, $20,000 had already been paid in advance.

"We had some disagreements with her invoice and after a prolonged discussion it was agreed that we would settle this amount by a full and final payment of $16,000."

He also said he and his wife had helped her bring her finances together, agreeing to an interest-free loan of just under $20,000 to clear her credit card debt.

"Ms MacGregor however, went into default on the repayment of this loan and was unable to make payment."

Mr Craig says Ms MacGregor requested the loan be forgiven "on compassionate grounds".

"Helen and I decided that we would do that.

"All financial matters with Ms MacGregor are resolved," he said.

In a statement released by Ms MacGregor this afternoon, she said she also wanted to set the record straight.

She says there have been "clear factual inaccuracies" in what Mr Craig said today, but would not elaborate because she wanted to keep her side of the confidentiality agreement.

Doing so would "jeopardise my legal position", she says.

"I am willing to correct those inaccuracies if Mr Craig confirms that he will not take legal action under the confidentiality agreement when I do so."

She is also willing to brief the party's board, but would need Mr Craig's consent.

"Until Mr Craig lifts confidentiality, I can make no further comments."

Ms Craig said she stood "in full love and support" of her husband whom she believes "has been falsely accused".

"The speculations relate to allegations already withdrawn," she said.

"Colin is a good man and it has been distressing for me to see his character and reputation under constant attack.

"I am amazed at his resilience, even when under such pressure."

Craig concedes he will have lost support among Conservative Party members.

Prime Minister John Key said he hadn't seen Mr Craig's press conference, but "did hear some squealing coming from my offices" while it was on.

He didn't think he'd dodged a bullet in not giving Mr Craig an electorate deal during the election, saying National hadn't needed them in the past three elections.

At his post-Cabinet press conference, Mr Key said there were a number of options for the Conservative Party which included the resurrection of Mr Craig as leader.

"Given he's been the major funder to the party, I'm aware there's obviously one other major funder, – if he wasn't the leader and wasn't involved in the party I would imagine that would financially challenge them a bit but that doesn't mean others couldn't step up," he said.

"There are a lot of permutations and combinations here. I guess you can't rule out him potentially coming back, them carrying on on their own or him setting up another political party, I really just don't know."

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