Spooks act illegally

NZ: Secret report unveils extensive illegal spying

Revelations that the secretive Government Communications Security Bureau (GCSB) may have spied on 85 New Zealanders illegally have been labelled "disturbing".

UNDER-RESOURCED: Hugh Wolfensohn's GCSB role gave him responsibility for legal advice, governance, performance, strategy, policy, risk management and strategic relationships.

Stuff,

9 April, 2013

Labour MP Grant Robertson said the revelations, contained in a report ordered in the wake of the Dotcom spying fiasco, threw fresh pressure on Prime Minister John Key to order an immediate independent inquiry.

"We need a full overhaul and overview of all our security agencies because that report indicates there are some serious issues at the GCSB," he said.

"But that is only an internal review and while that has thrown up some disturbing findings, it makes the case for the much wider review thats needed."

The report was prepared by Cabinet Secretary Rebecca Kitteridge and seen by Fairfax Media.

It was handed to Key last month but has yet to be made public.

Key is in China and could not be contacted for comment this morning.

The GCSB is barred by law from spying on anyone with New Zealand citizenship or permanent residence.

But the report shows that between April 2003 and September last year, 85 New Zealanders that came under its scrutiny may have been spied on illegally.

The spying was done on behalf of the Security Intelligence Service (SIS), the domestic spy agency.

Kitteridge's 71 page report also reveals a series of failings within the bureau's management and culture, which led to the illegal spying.

Kitteridge recommends an immediate overhaul of the law covering the GCSB's activities and says the agency may have breached other laws, including the Privacy Act and the Defence Act.

A review of those issues is already underway.

She is also critical of former GCSB deputy director Hugh Wolfensohn, who quit over the Dotcom scandal last year. As sole legal adviser and the chief architect of GCSB legislation, staff were reluctant to challenge him, the report says.

But she also points to under-resourcing of his office and notes that his requests for more lawyers were ignored. Agency staff worked faithfully and were devastated to learn they were not acting within the law. There was no evidence they acted in bad faith or believed the end justified the means, the report says.

Culture problems at the agency could take a year to fix, Kitteridge says.

The GCSB's organisation was overly complex, fragmented and had too many managers. Poorly-performing staff were tolerated, rather than fired or disciplined, because of fears that disgruntled former employees could pose a security risk.

The agency was also isolated and disconnected from the rest of the public service, the report says.

GCSB staff were reluctant to stray outside classified channels or seek external advice. New legislation was not analysed for possible implications on GCSB's activities.

Record-keeping within the bureau was poor, with staff relying on oral briefings or emails. Kitteridge struggled to find crucial policy documents and noted that some audit reports were missing.

She also identified a lack of oversight by the Inspector-General of Intelligence and Security, the watchdog who visited only four times a year, and was tied up with SIS work.

Kitteridge was tasked with reviewing the GCSB after the bureau conducted illegal surveillance on Dotcom, a German internet entrepreneur who has New Zealand permanent residency.

She was seconded to the agency in October last year and visited spy agencies in Australia.

Key, who is in China, has pledged to publicly release the review findings.

The report is due to be discussed by Parliament's secret intelligence and security committee next week.

It is understood new legislation will be introduced to Parliament soon after the report's release.

Police are already investigating the GCSB's illegal spying on Dotcom after a complaint from the Green Party.