KEY POINTS:
United States law enforcement agencies wanted to prosecute Colonel Selwyn Heaton over duty free breaches while he was living in New York, Defence Minister Phil Goff says.
However, they held off doing so on the understanding the offences would be dealt with under New Zealand military law.
Mr Goff was responding today to claims Col Heaton is the subject of a witch hunt after the New Zealand Defence Force (NZDF) court martialled him for avoiding over US$1000 ($1337) in duty.
National MPs have said NZDF only court martialled him on those charges after they failed to pin more serious charges on him relating to the United Nations rules on housing allowances.
Col Heaton is at the centre of controversy over allegations NZDF staff seconded to the United Nations have been receiving UN housing allowances while also receiving NZDF housing allowances.
Chief of Defence Force Lieutenant General Jerry Mateparae yesterday announced a Court of Inquiry to find out why NZDF allowances were paid to "up to five officers" who also received the UN allowances.
The double-dipping issue came to light during the court martial of Col Heaton who this week was reprimanded and fined $1500 for supplying a friend with tax-free booze and cigarettes while he enjoyed diplomatic privileges in the United States.
National defence spokesman Wayne Mapp today said the court martial was over the top and other lesser disciplinary actions could have been taken.
But Mr Goff today said the court martial was not a witch hunt and the NZDF had been alerted to the duty avoidance charges by the UN and the US Federal Bureau of Alcohol Tobacco and Firearms.
"They did not themselves lay charges against Colonel Heaton on the basis that he would be dealt with under military law back in New Zealand," he said on Radio New Zealand.
"That was why charges were laid."
Charges were not laid in regard to the housing allowance as that was the responsibility of the NZDF which "clearly has got it wrong".
Col Heaton was posted as New Zealand military advisor in New York from late 2001 until July 2006.
It has been alleged that during this time he was paid NZDF and UN housing allowances.
The UN changed its allowance rules in 2001, and Dr Mapp and fellow National MP Murray McCully yesterday said the NZDF had been "systematically rorting" the UN since then.
It was clear some of the most senior members of the NZDF were responsible, and it was unacceptable for them to victimise the colonel who faced the court martial to "cover their own tracks".
Lt Gen Mateparae said the Court of Inquiry would report by the end of this month and the result would be made public.
- NZPA