'Don't ask, don't tell' tip on Telecom leak

Cabinet ministers have been urged not to ask their departments about who the Telecom leaker may be and departmental heads have been instructed to tell their ministers nothing, Prime Minister Helen Clark revealed yesterday.

The secrecy request from State Services Commissioner Mark Prebble had been followed, she said, which was why she knew nothing about where the culprit was based.

However, that did not stop her pointing again to a Government department rather than the Beehive. She reminded reporters at her post-cabinet press conference that officials in departments and not just ministers' offices had received the secret Cabinet papers outlining Budget plans to make the telecommunications market more competitive.

Telecom's admission that it had been leaked the paper forced the policy to be announced prematurely, wiping $1.8 billion from the company's share value and prompting an inquiry by the State Services Commission.

The name of the culprit is likely to be revealed in the report of the inquiry, the commission hinted yesterday.

"In previous investigations of this type, because of the overwhelming public interest people are named, but that is a decision for the State Services Commissioner," spokeswoman Karen Jones said.

She would not say when the report would be released but a draft copy is thought to be in the hands of the suspected leaker.

Helen Clark welcomed Telecom's significant shift on Friday when it dropped its resistance to the changes and acknowledged they had wide support.

"I thought Friday's statement was a considerable step forward. It's a pity it hadn't been made nine days before when I think it would have been well received, but better late than never."

Meanwhile, the Electoral Commission's chief executive, Helena Catt, yesterday sent Labour and National letters asking why Telecom's annual report had declared a $70,000 donation to each of them when this was not declared in their election returns.

It is not unlawful for donations over $10,000 to be made anonymously through trusts.

Helen Clark said yesterday that she had not been aware that Telecom had donated to Labour. She had now been advised that its donation was made through a law firm which did not disclose the source of the money.

Amid the rumours about the leak, the Herald heard yesterday that it had come from the Department of Prime Minister and Cabinet which, if true, would be highly embarrassing for the PM.

Many Beehive staffers yesterday expressed the hope that the report would be released as soon as possible to remove suspicion from those who are genuinely absent from work.