Winston Peters to stand down as minister

New Zealand First Leader Winston Peters has stood aside from his ministerial portfolios while his party deals with a Serious Fraud Investigation inquiry.

Prime Minister Helen Clark said Mr Peters had asked her and she had agreed to be acting minister in each of his portfolios.

The NZ First leader was Foreign Affairs, Racing and Associate Senior Citizens Minister outside Cabinet under his party's support agreement with the Government.

He is at the centre of a maelstrom of controversy regarding donations to his party and the Serious Fraud Office yesterday announced an investigation.

"It is to be hoped that the SFO will address there matters expeditiously," Miss Clark said.

"Mr Peters is offering his total cooperation to the SFO and the first meeting between his lawyers and the Office will take place tomorrow morning."