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The Government is demanding full accountability of the Defence Force over claims its staff were double dipping on allowances.
The issue came to light during the court martial of Colonel Selwyn Heaton who on Monday was reprimanded and fined $1500 for supplying a friend with tax-free alcohol and cigarettes while he enjoyed diplomatic privileges in the United States.
Colonel Heaton was posted as New Zealand military adviser in New York from late 2001 until July 2006.
It was alleged that during this time he was paid Defence Force and United Nations housing allowances.
Colonel Heaton was not charged with that because it was an organisational issue.
National Party MP Murray McCully said the case raised serious questions about how far up the chain decisions went.
"I think this has very grave implications for the most senior people in our armed forces and potentially for the minister (Defence Minister Phil Goff)."
Mr McCully said the UN changed the allowance rules in 2001. "What's now clear is that New Zealand Defence Forces have been rorting the UN system for the subsequent seven years.
"That's obviously bad for our international reputation, and it raises serious questions about the judgment of people at the senior levels within the Defence Force and it raises questions about what General (Chief of Defence Force Lieutenant General Jerry) Mateparae knew and what the minister knew about this saga."
Mr McCully said Colonel Heaton had been hung out to dry simply because he was caught up in it.
"People were instructed to do. This is a place where people follow orders."
Mr Goff said UN rules stated that officers who got their allowances could not also get allowances from their home countries.
"It is totally inappropriate for rules set by the UN to be ignored by Defence Force officials," he said.
Prime Minister Helen Clark echoed his comments saying the Government would get to the bottom of the issue. "If there's been wrong done there must be action taken. That's happened with the colonel and the issues of the liquor and tobacco importation and it must now happen with the other matter."
Helen Clark said there was no basis to say there was a wider problem.
- NZPA
