Defence HQ sends alleged mole home

By FRANCESCA MOLD

A Wellington consultant blamed for leaking piles of secret Treasury reports is unlikely to have had access to similar documents while working for the Defence Force.

The Treasury has publicly named Peter Davies as the man responsible for copying dozens of documents later used by Act MP Rodney Hide to attack the People's Bank, New Zealand Post and Television New Zealand.

He is alleged to have downloaded them from a central computer database at the Crown Company Monitoring Advisory Unit where he worked on a three-month contract until June 28.

The Treasury does not know how the information was later passed to Mr Hide and the media.

The Defence Force confirmed yesterday that Mr Davies had been chief financial officer at its Joint Forces Headquarters in Trentham since July 2 but was now on special paid leave until the issues raised during the Treasury investigation were resolved.

A statement by Mr Davies said Treasury Secretary Alan Bollard had contacted his employer on August 29 and informed him there was "incontrovertible" evidence that he was the source of the unit's leaks.

At that time, Mr Davies said he was not aware of any allegation against him by the investigator the Treasury hired to find the mole, former Justice Secretary David Oughton.

The next day he was sent on indefinite leave.

Mr Davies' lawyer, Noel Sainsbury, said his client was coping with the publicity. Mr Davies has denied any responsibility for the leaks.

The Treasury is still considering whether to take legal action against Mr Davies, who signed a confidentiality agreement as part of his contract.

nzherald.co.nz/peoplesbank