The family of teenager Liam Ashley have been compensated after he was killed by an inmate in a van while being transported to prison.
The 17-year-old was beaten and strangled by George Baker on the way to Mt Eden Remand Prison in Auckland in August 2006.
His familywere outraged that he was placed in close quarters with a dangerous adult prisoner and called for the Corrections Department to be held accountable.
Official investigations found downfalls in the way the department dealt with the transportation of inmates leading to the introduction of waist restraints in prison vans.
The Ashley family talked at the time about suing the department in the hope it would avert further tragedies.
The Dominion Post reported today that the department had made a secret payout to Ashley family over the incident.
Corrections and Crown Law told the paper the case had been discontinued but would not comment on the question of monetary compensation.
The Ashleys' lawyer, Grant Cameron, said the matter had been "resolved between the parties".
Sensible Sentencing Trust spokesman Garth McVicar said while most people had to take some sort of responsibility for mistakes, it seemed government departments were immune.
He said there seemed to be no consistency when it came to compensation being offered to victims of crime.
George Baker was given a life sentence, with a minimum non-parole period of 18 years, for murdering Liam Ashley.
