David Shearer has questioned John Key's claims he knew nothing about Megaupload founder Kim Dotcom.
The Labour leader, speaking on TVNZ's Q+A, claimed the Prime Minister was not telling the entire truth regarding his knowledge of the internet millionaire, accusing the leader of "conveniently forgetting."
Shearer's claims follow months of arguments between both parties, as both leaders stand their ground over the ongoing saga.
Addressing Parliament after a two-week recess in mid-October, the Prime Minister caused uproar in the house by clarifying when he was first informed about spying in the case, leading to raised voices and harsh insults across the room.
Key said the first time he heard of Dotcom was on January 19 this year, with Shearer disputing his claims:
"It comes to the real issue about competence in Government and knowing what's going on."
Branding the case a "monster issue", Dotcom said:
"He is running around naked and telling people he has clothes on.
"Everyone can see he's naked. It doesn't make any sense. I know for a fact John Key knew before January 19.
"It's going to be a topic in our court hearings. I don't want to reveal too much. But I know. And for him not to be honest and upfront about it - to me there is really only one reason.
"That's the political-interference element that could stop the full extradition procedure."
When asked if he believed Key has lied, Dotcom replied: "Yes". Confirming he has evidence to prove so.
Speaking to TVNZ, Dotcom said he would not seek damages from tyne Kiwi government over the police raid earlier this year, but instead is targeting the U.S. if he is successful in his claims.
"If I would seek damages, I would not seek them in New Zealand," he said.
"I would seek them from the US Government, which has acted in bad faith, and I would seek that also from Hollywood studios," he said.
"We know that they have spied on us more than is already known.
"I mean, they have installed cameras around the property. They have surveilled us quite a bit, so all of that will have to come out during the court proceedings.
"The bottom line is if Megaupload is illegal, so is YouTube, so are countless other sites that allow user-generated content," he said.
"If you go to YouTube now, right now, and you look for infringing material, you will find more there online right now than you would ever find in the history of Megaupload. It's the reality of the internet.
"It's not my responsibility to stop them [customers uploading copyright infringing files]. I was an online service provider. It's not my job to police what people are uploading."
Do you think John Key has lied? Tell us your thoughts below.