Prime Minister John Key says he sees nothing of concern, after looking into accusations made against Nick Smith MP in relation to the MacKenzie Futures Trust.
Dr Smith, the former Environment Minister, intervened to ensure the trust received $180,000 of Government funding.
Labour says his actions, after the trust had been turned down by the Ministry for the Environment, smack of cronyism.
But Dr Smith says it was a cost effective way of reaching agreement over contentious issues in the MacKenzie Basin and everything was above board.
Dr Smith resigned his ministerial portfolios over an ACC scandal. Mr Key says his return to Cabinet would be subject to several factors, but nothing he's seen in this case would rule that out.
Labour says it intends to pursue the matter further in Parliament this week.