The New Zealand Defence Force says up to five officers seconded to the United Nations in New York received UN housing allowances while also receiving NZDF allowances.
Chief of Defence Force Lieutenant General Jerry Mateparae yesterday said a court of inquiry would be convened to find out whyNZDF allowances were paid to "up to five officers" who also received the United Nations allowances.
General Mateparae said if the Defence Force had not been complying with UN rules, "I will take steps to make sure that we do follow the proper guidelines".
The NZDF accommodation allowance was no longer paid to staff seconded to the UN.
The double-dipping issue came to light during the court martial of Colonel Selwyn Heaton, who was reprimanded and fined $1500 for supplying a friend with tax-free alcohol and cigarettes bought while he had diplomatic privileges in the United States.
Colonel Heaton was New Zealand military adviser in New York from late 2001 until July 2006. It has been alleged that during this time he was paid both housing allowances.
He was not charged with that because it was an organisational issue.
Defence Minister Phil Goff said yesterday it was "totally inappropriate for rules set by the UN to be ignored by Defence Force officials".
The UN changed its allowance rules in 2001, and National MPs Murray McCully and Wayne Mapp yesterday said the NZDF had been "systematically rorting" the UN housing allowance rules since then.
"That is obviously unacceptable conduct on the part of an agency of state and one that will be damaging to New Zealand's international reputation," they said.
"We now need to know who sanctioned this action, who knew of it, and when they knew of it."
It was clear some of the most senior members of the Defence Force were responsible, and it was unacceptable for them to victimise the colonel who faced the court martial to "cover their own tracks".
They also said Mr Goff had approved answers to the foreign affairs select committee before June 18, providing a "sanitised" version of the dispute between the UN and NZDF over the allowances.
