KEY POINTS:
Immigration Service chief Mary-Anne Thompson was warned about conflict-of-interest problems but still helped relatives with forms to get NewZealand residency.
The handling of an inquiry into her actions is now being looked at by State Services Commissioner Mark Prebble - but questions are being raised about whether he also faces a conflict of interest because of a previous working relationship with Dr Thompson.
Former Labour Secretary James Buwalda's role is also likely to be under the spotlight because the incidents happened under his watch.
The Labour Department is responsible for the service and has issued a statement explaining that Dr Thompson was warned after twice seeking help from immigration officers in December 2004 and May 2005 to get visa waivers for members of her extended family in Kiribati.
Secretary of Labour Christopher Blake said Dr Buwalda found those cases raised conflict-of-interest questions and Dr Thompson was directed "not to become involved in decision-making regarding any person with whom she had a personal relationship".
However in late 2005 three family members applied for residency permits and Dr Thompson helped to fill in the forms, signing her name to say she had done so.
This was investigated by former Secretary of Justice David Oughton last year after questions were raised in an internal audit.
Mr Oughton found that residency was granted even though the application was too late and the quota filled. A staff member was disciplined for making the decision to give approval without being authorised, but the residency was not revoked.
Mr Oughton found Dr Thompson had not sought to influence the outcome but had wanted to help with the forms. The department has refused to release that report.
Mr Blake said he took conflicts of interest extremely seriously but felt there was no need for a new inquiry.
However Prime Minister Helen Clark told Immigration Minister Clayton Cosgrove on Monday that "for his own peace of mind" he should refer the case to the State Services Commission, and he passed it to State Services Minister David Parker.
Dr Prebble said he would report to ministers on the Labour Department's handling of the case, given public concerns that family members of senior officials got different treatment from others.
Dr Prebble could not say how long the report would take but said he would treat it as a high priority.
"This matter has resulted in public concerns being raised about whether there are different rules for the family members of senior officials," he said.
"While it was the responsibility of the then chief executive to investigate the matters internally and to make any decisions affecting the service or its employees, it is appropriate for the State Services Commissioner to consider whether that function has been discharged effectively."
National immigration spokesman Lockwood Smith said the first inquiry should be released and questioned why a second one was needed.
He said Dr Prebble should stand aside from the inquiry because he had worked with Dr Thompson in the Department of Prime Minister and Cabinet.
Dr Thompson's title with the department is Deputy Secretary - Workforce, a group responsible for delivering immigration, settlement and employment-related services to customers and information and policy advice on those areas to the Government.
- NZPA
