The Government's decision to put money into an Asian investment bank is stupid and unwise, New Zealand First leader Winston Peters says.
Official documents from July 2014 through to June this year show New Zealand will fund its contribution to the newly established Asia Infrastructure Investment Bank from the Future Investment Fund, set up from the money made from partial state asset sales.
Mr Peters said that broke the National Party's 2011 election promise to spend the proceeds on schools and hospitals.
He told Morning Report the money should not be going overseas.
"The first time we asked about whether or not anything had been spent offshore, we found out it had," he said.
"So right there is the reason why ... the whole process of privatisation, to soften New Zealanders up, was predicated on a falsity."
Mr Peters yesterday said Mr Key seemed to think he could get away with "saying any old thing".
"First of all, when they sold these public assets, they were meant to go to Mum and Dad Kiwi shareholders. That was a lie.
"Then second, they were to pay for hospitals, schools and roading. Again that was an exercise in deception."
Mr Peters said investing in an overseas bank did not comply with Mr Key's earlier statements.