At a press conference where Metiria Turei vowed to continue on as Greens co-leader, the embattled MP admitted that potential coalition partners Labour have "expressed concern" over her admission of committing benefit fraud when she was a single mother.
Turei said due to these concerns she would not be seeking a ministerial position in a potential Labour-Green coalition Government.
"It puts them in a difficult position, the Labour Party hasn't asked me to step aside from a ministerial position, but I think it's important under the MOU which is why I have taken the steps I have," Ms Turei said.
Holding a media press conference today, it had been speculated that Ms Turei would resign amid increasing pressure following admissions of her past electoral and welfare fraud.
"I will not be resigning as co-leader of the Green Party, or as a member of parliament for the Green Party," Ms Turei said at the press conference.
ACT leader David Seymour who called for Ms Turei's resignation this morning on TVNZ1's Breakfast was quick to condemn her decision in a statement.
"Today Metiria Turei refused to resign as an MP, instead just saying she won’t pursue a Ministerial position," says Leader David Seymour.
"What a cop out. She needs to resign as MP. She’s defrauded the taxpayer, used that fact to score political points, lied to the electoral commission, and misled voters about it.
"By trying to take a compromise position, it’s as though she says she's only a little bit sorry."
The latest electoral fraud revelation from Ms Turei come as she's investigated for self-confessed welfare fraud in the 1990s when she was a solo mum.
The WINZ investigation was sparked after Turei publicly told authorities she was living alone despite subletting some of her rooms to flatmates.
Ms Turei says one of the those flatmates was her mother.