The Telecom leak: Two mates and how the story got out

PETER GARTY

* Senior Telecom employee. Has worked for more than eight years as a group controller, finance, reporting to the chief financial officer.

* Met Michael Ryan through their children being at school together. Lives near Mr Ryan in the Wellington suburb of Khandallah.

* Belongs to Onslow Tar Babies mountain biking club with Mr Ryan. They often see each other on weekend rides.They are also involved in fundraising ventures through the cycling group.

MICHAEL RYAN

* Messenger in the Department of Prime Minister and Cabinet. He was first employed in the public service from the 1970s until the late 1990s.

* Last October he was employed in the DPMC. He had four referee checks - some of the referees were senior public servants who had worked with him - a police check showing he had no convictions and a profile from a registered psychologist to get his job and security clearance.

* Mr Ryan and his wife had travelled abroad with Peter Garty and his wife.

HOW THE NEWS GOT OUT:

MAY 1

Michael Ryan delivers papers in the Cabinet office and sees agenda either for Cabinet meeting or Cabinet policy committee meeting which mentions a telecommunications review.

At Peter Garty's home, he tells Mr Garty about the review.

MAY 2

Mr Ryan sees the document, intended for shredding, in a tray and takes it. That night, after a cycling group meeting, Mr Ryan gives Mr Garty a ride home and passes him the document. He tells his friend it is for his eyes only, not to copy it, and to return it the next day.

Mr Garty had drunk "a number of glasses of wine" and is tired. He finds it difficult to focus on the document, so photocopies it at home. MAY 3 Mr Garty returns the original by 7.30am to Mr Ryan, who returns it to the Beehive shredding bin.

Mr Garty takes his copy to work at Telecom and gets rid of the page with the Cabinet header, feeling an "increasing sense of discomfort".

He asks a Telecom lawyer for advice and the matter is referred to senior management. Telecom calls the Government, which publicly releases the details of the document.

MAY 4

Government announces inquiry. Telecom share price plunges.

MAY 5

Telecom hands details of leak to State Services Commission and identifies Mr Ryan.

MAY 7

Mr Garty's evidence is that on this date he met Mr Ryan, who said he thought Mr Garty might have been able to use the information to "take care of" his Telecom shares. Mr Ryan denies the conversation.

MAY 12

SSC announces employment action has begun and promises report.

YESTERDAY

Michael Ryan publicly identified as source of the leak. Mr Garty and Telecom found to be not at fault.