Colin Craig's former press secretary, Rachel MacGregor, alleges he breached a confidentiality agreement after he fronted the media today.
Former Conservative Party leader Mr Craig fronted media this afternoon at a standup in Auckland backed up by his wife Helen, where he addressed "wild speculations and allegations" regarding his dealings with Ms MacGregor.
He denied rumours of sexual harassment, but admitted some of his dealings with her had been "inappropriate". He declined to expand on what part of their relationship had been inappropriate.
"In hindsight, on some occasions our conduct was inappropriate and we have acknowledged that so we can both move on," he said.
"Let me make it very clear that I have never sexually harassed anyone."
This evening, Ms MacGregor issued a counter-statement saying Mr Craig had breached a confidentiality agreement reached during Human Rights Commission mediation.
"I am therefore unable to correct the clear factual inaccuracies contained in the statement Mr Craig made today without jeopardising my legal position," she wrote.
Ms MacGregor said she would detail the "inaccuracies" only if Mr Craig agreed not to prosecute her for breaching the agreement.
"I am also willing to fully brief the Conservative Party Board on Mr Craig's conduct but, again, this would require Mr Craig's consent."
Mr Craig told media today he had loaned Ms MacGregor $20,000 to pay off her credit card debt, and then he and his wife had decided to forgive the debt after Ms MacGregor informed them she was unable to pay.
He also detailed an invoicing dispute between the pair, saying Ms MacGregor had invoiced him for about $50,000 for services rendered last year. He said $20,000 of this had already been paid last year and he also stumped up a final payment of $16,000.