Prime Minister John Key was briefed on May 12, the same day the Malaysia High Commission met with the Ministry of Foreign Affairs and police to discuss the case.
Wellington District Police Commander Superintendent Sam Hoyle said once diplomatic immunity was confirmed, the bail conditions were no longer enforceable.
Rizalman was initially ordered to relinquish his passport by 5pm on May 12.
"By this time, police had been able to confirm with Mfat that he had diplomatic immunity and therefore the bail conditions were unenforceable.
His passport was secured at the Malaysian High Commission during this time and, once the immunity was confirmed, police sought to have the now unenforceable bail conditions removed," Mr Hoyle said.
At a court hearing on May 15, court records note: "At the request of police, bail conditions are removed - [Rizalman] now at large. Issue as to whether defendant has diplomatic immunity being looked into."
A week later, on May 22, Rizalman flew back to Malaysia.On May 29, an email from police to court officials noted that Rizalman had left New Zealand.
"The New Zealand authorities had no lawful powers to prevent Mr Ismail's departure," the email from Blake Dawson from the police prosecution service said.
Review details released
Meanwhile amid calls from Labour and Greens for a review to be independent, former Treasury secretary John Whitehead has been announced to head the inquiry.
Mr McCully, who has upgraded it to a Ministerial Inquiry, released the terms of reference this morning.
"A thorough and transparent Inquiry is important, as those managing diplomatic immunity issues for the government need to enjoy the full, unfettered confidence of the New Zealand public," Mr McCully says.
The Inquiry will focus on the following areas:
• the appropriateness and robustness of procedures to deal with circumstances in which a waiver of diplomatic immunity is sought by the New Zealand Government, and;
• the events that took place in the Malaysian diplomat case and the management of the request for a waiver of diplomatic immunity.
The findings will be released publically.
"The Inquiry report will recommend ways to rectify shortcomings and strengthen processes for the future management of diplomatic immunity cases," Mr McCully said.
"These events have had a serious impact on a young woman and have quite rightly undermined public confidence in the ability of the Ministry of Foreign Affairs and Trade.
"I do not wish to compromise either the inquiry or any criminal proceedings by commenting further."
Peters: 'Why didn't he surrender his passport?'
New Zealand First leader Winston Peters said the documents begged a number of questions.
"The granting of name suppression [on May 10] could only have occurred with him subjecting himself to New Zealand legal jurisdiction. The bail conditions included surrendering his passport ... So, why didn't he surrender his passport?
"On May 15 'at the request of police' bail conditions were removed which begs the question: who authorised the police to change their stance? To suggest that a middling Mfat official authorised a change in police actions does not make sense from either a law enforcement position or Mfat decision.
"The Minister of Foreign Affairs was briefed on the May 10, the Prime Minister was briefed on May 12, so the government needs to explain why the passport wasn't surrendered and why the police changed their position."
