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Police are being asked to explain why they told the Prime Minister Ahmed Zaoui may be linked with al Qaeda.
Last week, Helen Clark's office issued a media release indicating a link between the Algerian refugee's political party FIS and the terrorism organisation.
Doubts have since been raised on the accuracy of the information.
The Prime Minister says information on terrorist lists comes from the police who have responsibility for counter-terrorism. She says they are being asked what they based the statement on.
The September 10 statement included the latest list of individuals and organisations identified under the Terrorism Suppression Act. They have all been listed by the United Nations as terrorist entities.
The statement then went on to describe some of the individuals, noting that one of them had been "associated to the outlawed Islamist Algerian political party, Islamic Salvation Front (FIS)".
The Prime Minister's statement said the FIS and two other groups "have ties to al-Qaeda".
The UN website which publishes lists of terrorist entities does not mention the FIS.
Helen Clark said today the information on the list she issued came from the police.
"They have responsibilities for counter-terrorism, they keep an eye on those the UN designates," she said on Newstalk ZB. "I'm going back and checking that advice."
Sydney-based FIS member Samir Bennegadi suggested a link was being made between the FIS and terrorism because of the "politics" surrounding Mr Zaoui's detention in New Zealand.
He said the FIS would ask the Government to clarify its statement.
Last week, Zaoui lost his appeal to be moved out of prison after two of the three Court of Appeal judges said his detention was lawful.
The other judge said it breached the Bill of Rights.
- Newstalk ZB, NZPA, Herald staff
Herald Feature: Ahmed Zaoui, parliamentarian in prison
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Police asked to explain claim Zaoui linked to al Qaeda
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