NZ First leader Winston Peters has today expelled NZ First MP Brendan Horan from the NZ First Party.

The leader of the party made the announcement in Parliament this afternoon stating that he no longer has confidence in the Tauranga-based MP after allegations Brendan misappropriated money from his late mother's bank accounts.

NZ First MP Brendan Horan's offices at Mount Maunganui were closed this afternoon despite a sign saying the premises are open until 4pm daily. Inset: Brendan Horan.

Winston told Parliament he received new evidence as late as 2.15pm today that has forced him to expel the MP from the NZ First Party caucus.

'In recent weeks there have been a number of allegations against Mr Horan.

'I have taken these allegations very seriously. Up until a few days ago I had not received any evidence.

'New evidence has now come into my possession and information we have received leaves me in a position where I have no confidence in Mr Horan's ability to continue as a Member of Parliament.”

The NZ First leader says it is a "bitterly regrettable situation" but the decision to expel Brendan had to go on public record immediately.

Although Brendan can stay on as an independent MP, Winston says Brendan is duty bound to stand down from Parliament.

Earlier today Brendan's lawyer Paul Mabey QC stated the allegations are untrue.

"Mr Horan has been the subject of unwarranted and unfair publicity which has implied that he is dishonest and has stolen from his mother. There can be no other interpretation of that publicity.

"Mr Horan completely denies any suggestion that he has stolen from his mother or misappropriated her money or assets.

"He regrets that a private and personal family matter has been made public and his only wish is that the issues concerning his mother's estate are resolved quickly and properly.

"Mr Horan will make no personal comment at all on these matters, but has instructed that this release be made on his behalf."

The NZ First MP's mother Olwen Horan, 87, of Mount Maunganui, died in early August about three months after signing a codicil to her will after she became concerned that money was missing from her accounts.

She won about $1million in prizes including a house and car in an Australian lottery in 1999.

Media reports claim that in February 2007 Olwen Horan had a balance of $259,000 in her account. There was less than $3000 left when she died.

The codicil to the will requesting the missing money be found and repaid, came at the same time the former executor, Brendan's sister, who had power of attorney, was removed.

Brendan's brother, Mana Ormsby has since gone to the media with allegations $85,000 is missing from his mother's accounts via a large number of withdrawals from TABs and from ATM machines near Mr Horan's office in Mount Maunganui, Auckland and Hamilton.

The executor of the will, her nephew John Buckthought, is reported to have handed over ten years of bank statements to a law firm and forensic accountants are investigating.

He said Brendan's mother was concerned that money was missing from her accounts, but asked that the legal action not be taken until after her death.

Forensic accountants are now investigating the matter.

Brendan is continuing to collect his $140,000 a year salary.