A New Zealand First treasurer claims he was moved out of the party after questioning its financial records.

The Electoral Commission is looking into Winston Peters's party after it's been suggested nearly half a million dollars in political donations may have been hidden inside a secretive foundation.

Former party treasurer Colin Forster told Heather du Plessis-Allan he saw red flags from the first day on the job.

"I was suspicious because of the way in which the books were presented to me on takeover. It was an exercise book you can buy from a stationery shop, and that was the books of the party."

He says that he had to reconcile that those accounts and the bank balances matched, but there was nothing to be concerned about. 

Forster says that he can't say if the donations were in existence during his time as treasurer as he was not made aware of them. 

He says that after 12 years as treasurer, he was not considered to continue in his position. Forster says it was not Peters that wanted him out but rather other members of the board who were annoyed he did not buckle to their wishes, which included Ron Mark. 

"The President at the time didn't back me. Whether Winston backed me or not, I don't know." 

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