The Government has been severely embarrassed after it was revealed that a second member of Saddam Hussein's regime is living in New Zealand.
NZ First leader Winston Peters named the man yesterday as former minister Amer Mahdi al-Khashali.
Mr Peters said al-Khashali was a security risk and his presence showed New Zealand's border security was in tatters.
Last night, the Government froze all overseas processing of "high-risk" visa applications after it was discovered that both visas in question were issued at the New Zealand Immigration Service's Bangkok office.
Immigration Minister Paul Swain is angry with immigration officials over the mistakes, which have caused international embarrassment.
Al-Khashali is the second member of the deposed Iraqi dictator's Government discovered in the past two days to be living in New Zealand.
On Monday, Mr Swain revoked the visitor's permit of an Iraqi, believed to be Zohair Mohammad al-Omar, after it was found that he had been a senior diplomat in Saddam's regime.
Early today, the Herald confirmed that al-Omar was serving in South Africa as Iraq's ambassador just as the US-led coalition declared war on Iraq.
Isaac Mogotsi, South African director of Foreign Affairs for the Middle East, told the Herald that al-Omar had "certainly [also] served as Iraq's ambassador to Cuba" and had "sought asylum in New Zealand".
In an April 2003 interview in the South African Sunday Times, al-Omar defended Saddam and said suicide bombers were a "justifiable" means of fighting coalition forces invading Iraq.
"Are we sending any suicide bombers outside our country? No, we are defending our country. You have people ready to fight for their motherland. What's wrong with that?"
He was certain that Iraq would prevail. "By the will of God, those aggressors must go back to their countries. Defeated."
Al-Omar declared his past on immigration forms when he entered New Zealand, but this was overlooked by officials.
But to the Government's embarrassment, yesterday in Parliament Mr Peters revealed the details of a second man - al-Khashali.
Auckland Refugee Council president Dr Munjid Umara, a refugee from Iraq, was horrified to learn he is in New Zealand.
"When the Baath Party came into power in 1963 he was ... one of the leaders of the militia which killed all those Iraqis between February 1963 and November 1963."
Dr Umara said Saddam made al-Khashali a minister in the 1970s in return for many years of service to the Baath Party.
The Iraqi people would never forget people like al-Khashali, he said. "It is terrifying that these people are now seeking asylum in New Zealand."
Mr Peters said al-Khashali came to New Zealand a month ago with his wife.
Last night, Mr Swain called a rushed media conference where he confirmed that al-Khashali was in New Zealand.
Mr Swain said he had given orders to begin the process of revoking al-Khashali's visitor's permit.
"I am extremely unhappy with the situation," he said. "I was informed yesterday that a proper search was done on all people fitting the profile of this kind of person. Clearly this search was not completed."
Both of the Iraqi men's applications were processed by the Immigration Service's Bangkok office, which has a staff of 40. A Thai national is believed to have processed the applications.
Mr Swain said he had no confidence in the processing of visa applications coming from that office.
Mr Swain said al-Khashali was not a security risk, but Mr Peters said he had further information that showed him to be a risk.
Last night, al-Omar's son told the Herald that his father should not have to leave the country.
"He is not wanted in any country, he is not a threat, he didn't hide anything before he came here, and his name came up while they were looking for someone else.
"And now they say he should leave. It's not right."
He said his father had not applied for refugee status.
Unwanted Iraqis
1. Amer Mahdi al-Khashali, a former Minister of Agriculture in Saddam's Government. In 1981 made Iraq's representative on the United Nations's Food and Agriculture Organisation. Has Iraqi and UN passports.
2. Zohair Mohammad al-Omar, Iraq's Ambassador to Cuba and Bangladesh.
The clean-up
What Immigration Service is doing:
* All immigration applications relating to high-risk countries, of which there are 54, will now be processed in New Zealand.
* A special team will be set up in New Zealand to process those applications.
* That team will review all immigration applications from high-risk countries going back two years.
Bangkok office's chequered history
Immigration services at the New Zealand Embassy in Bangkok have been questioned before.
An investigation was held in February 2003 into an alleged cash-for-visas ring through the embassy, which allegedly asked Cambodians for bribes up to $7000 for student visas. It was reported that an audit of visa approvals at the embassy, completed in March 2002, revealed that "all is not well". An immigration official was suspended following the inquiry and procedures were tightened.
Last night Department of Labour deputy secretary Mary Anne Thompson said the immigration office at the embassy, which employed about 40 staff, had been strengthened since the 2003 probe.
"I don't believe this is an issue of kick-backs," she said. "What we're saying is we don't like the decision-making coming out of that branch."
Ms Thompson said she was unaware whether the same person had approved both visitor visas but a Thai national had approved Amer Mahdi al-Khashali's permit.
- additional reporting, Angela Gregory and Derek Cheng
Crackdown follows Iraqi visa blunders
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