KEY POINTS:
The prison manager responsible for ensuring the Parole Board knew everything it needed to about murderer Graeme Burton kept quiet about claims that Burton was a bully and had threatened prison staff.
The board freed Burton from Rimutaka Prison in July last year after hearing testimony that he was a compliant prisoner who got on well with inmates and prison staff.
He broke his strict parole conditions in December and, while on the run from police, murdered Karl Kuchenbecker on January 6.
Burton's parole was granted despite the psychologist's report finding he had a "high" psychopathy rating and had allegedly beaten up other inmates and ordered hits on guards.
The Parole Board did not give the allegations any weight because they were described in the psychologist's report as "unsubstantiated".
However, a report by the prison's crime prevention officer at the time, Rachel Sayer, found the claim that Burton had ordered hits on prison guards was "probably true" and based on genuine information.
Ms Sayer was also threatened by Burton during her investigation, and found that other inmates saw him as a bully.
According to her report, Burton "became quite elevated in his approach" when being interviewed.
"He then informed me that he had a [parole] board appearance coming up and if he didn't get his board, then 'all bets were off'.
"I took this to be a threat and asked him what he meant by this. He explained that if he didn't get his board, he had nothing to lose."
The inquest into Mr Kuchenbecker's death heard last week that the psychologist, Nicholas Lascelles, did not support Burton's release if the allegations had any substance.
The acting prison manager at the time, Chris Smith, who is in a long-term relationship with Ms Sayer, did not disclose the report or its findings to the Parole Board. Mr Smith had ultimate responsibility for supplying the board with information that accurately reflected Burton's behaviour.
It is understood Mr Smith felt the psychologist's report on Burton was sufficient for the board to pass judgment. The Corrections Department has since admitted this was a mistake and more information should have been passed on.
Coroner Garry Evans has reserved his decision.
* GIVEN FREEDOM
Graeme Burton was freed by the Parole Board in July last year. He breached his parole conditions and murdered Karl Kuchenbecker in January.
The board did not give any weight to "unsubstantiated allegations" against him, including that he assaulted inmates and ordered hits on staff.