Iain Lees-Galloway cleared of 'inappropriate transactions'

Former Labour Party Minister Iain Lees-Galloway has been cleared of inappropriate spending by Ministerial Services.

A "line by line" review of all his expenditures was undertaken in the inquiry, and it included staff and spouse expenses from January 1, 2019 to June 20, 2020, Prime Minister Jacinda Ardern says.

It follows Lees-Galloway being sacked in July for having a 12-month affair with one of his former staff members.

"I commissioned the review to ensure taxpayer money was not inappropriately used in the course of his relationship, and the report has found none was," Ardern said.

"The review has confirmed all expenditure was consistent with the relevant legislation, determinations and policies governing the use of public funds and no evidence of transactions that require further review."

She added she now considers the matter closed since the report has been released and Lees-Galloway is leaving Parliament at the election.

During his valedictory speech in Parliament last week, Lees-Galloway used his time to apologise to his family and take responsibility for the affair.

"We must recognise not only the imbalance of power involved but also the impact such a relationship can have on a workplace. That's why I have to go," he said. 

"The near end of our marriage, the death of my father, and now the end of my political career - we even had to put the dog to sleep a few weeks ago. It's been a rough year."

Ardern said in July she felt it necessary to sack him since he was the Minister of Workplace Relations and described his affair as "completely inappropriate".

"Given the nature of the sustained period... the issue is that this could've led to accusations of him inappropriately using his office given his role as Minister of Workplace Relations and Safety," she said.

"There are circumstances here that I think reach a threshold that require the actions I've taken today and therefore is something I would've wished the minister to have shared with me... I've made the decision about the role and my confidence in him as a minister."

Along with his role as Minister of Workplace Relations, he was also stripped of his ACC and Immigration portfolios.

"I accept the Prime Minister's decision and apologise absolutely," Lees-Galloway said at the time. "I have acted completely inappropriately in my position and cannot continue as a minister."

Lees-Galloway's affair became public knowledge after National leader Judith Collins told The AM Show in July she had passed on to Ardern a tip-off she'd received about "fairly inappropriate behaviour" regarding a Labour Party minister.