KEY POINTS:
Claims that members of the team investigating the 2002 Tranz Rail deal involving Sir Michael Fay and David Richwhite faced threats to their employment are very serious and worthy of investigation, says Deputy Prime Minister Michael Cullen.
The long-running insider-trading case involving Tranz Rail was settled on Monday for a record $20 million.
The settlement was made without any admission of liability.
Midavia Rail, owned by Sir Michael and Mr Richwhite, made $63 million selling Tranz Rail shares in 2002.
The Securities Commission accused the company of insider trading and said Mr Richwhite, a Tranz Rail director, tipped off Midavia when to sell because he knew of financial problems not in the public domain.
Commerce Minister Lianne Dalziel congratulated the commission and said it took the fight with "guts and gumption".
There had been "interests out there" who did not want the case pursued, she said. She refused to identify who she meant.
Yesterday Dr Cullen, responding to parliamentary questions on behalf of Ms Dalziel, said she had been referring to those who attacked the commission for taking and continuing to pursue the case.
NZ First leader Winston Peters asked if the minister was aware of people involved in the case threatening those on the commission over their future contracts and employment.
"I don't have information in relation to that in front of me," Dr Cullen said.
"I think that would be a very serious matter indeed which would be worthy of further investigation."
Mr Peters asked if the minister had any reports prepared on the actions of the heads of the Serious Fraud Office and the Inland Revenue Department as to "what their proper action should have been and didn't take".
They exposed themselves to be accused of being "grossly negligent" in their duties, Mr Peters said.
Dr Cullen said he was not aware of any reports, but the Serious Fraud Office had close to a 90 per cent success rate in its prosecutions.
On Tuesday, Mr Peters was allowed a snap debate in Parliament on the subject and used it to flay those who he said failed to act earlier.
He also criticised previous National Governments under whose watch the events occurred.
"They [Sir Michael and Mr Richwhite] had an insatiable greed and in satisfying it they corrupted New Zealand politics and New Zealand politicians and there's no way out of it," he said in Parliament.
Mr Peters has run a crusade against some in the corporate sector, including the two businessmen, over actions in the 1980s and 1990s and has expressed anger at what he says is a lack of action.
Mr Peters invested time, money and political capital in pursuit of some of the cases, most notably the Winebox case, over which he accused Sir Michael, Mr Richwhite and others of an elaborate tax evasion scam.
Mr Peters said in Parliament that the businessmen were "as guilty as sin" and had profited from a string of transactions.
- NZPA
