Mates again after Telecom leaker cleared

A former Government worker and the friend at Telecom to whom he gave a secret Cabinet paper are about to rekindle their friendship, after police decided they did not commit any crime.

Michael Ryan was a messenger in the Department of Cabinet and Prime Minister when he took the paper home on May 2 and gave it to a friend and cycling buddy, Telecom financial controller Peter Garty.

The paper outlined Government plans to force Telecom to open its network to competitors, and its premature disclosure wiped more than $2 billion off the company's share value.

An inquiry by the State Services Commission found Mr Ryan, who was later sacked, was motivated by "some misguided sense of friendship" when he gave the documents to Mr Garty. It cleared Mr Garty and Telecom of any wrongdoing.

A police investigation has found that the circumstances surrounding the disclosure of the Cabinet paper "do not amount to criminal offending".

Mr Garty told the Weekend Herald he had not had any contact with Mr Ryan since the scandal broke.

"On the advice of my lawyers I haven't communicated with him ... but at some stage we'll get together for a chat. I don't think we'll spend too much time talking about what's happened. I think we'll just try and move forward."

Mr Garty said he never had any concerns about legal proceedings being brought against himself, but he was happy for Mr Ryan.

"I'm pleased for Mike Ryan that they aren't going to pursue him."

Prime Minister Helen Clark had described Mr Garty's actions in receiving the paper as either criminal or deeply unethical.

Mr Garty did not want to comment yesterday on that statement, which was made in Parliament in May.

"I was compromised and everything I did was correct, so that's where I leave it. I wouldn't comment on what she said."

A spokesman for Helen Clark said that she was not commenting on the police decision because it was an operational matter.

Mr Ryan could not be contacted last night but earlier told NZPA it would be good news if he had been cleared.

He was supposed to have shredded the Cabinet paper but instead took it home and handed it over in a manila folder to Mr Garty after a meeting of their cycling group.

Mr Garty was told it was for his eyes only, was not to be copied and would be picked up the next morning.

However, Mr Garty said he had had a few drinks and could not focus on the document so made a copy. He took it to work the next day and sought legal advice within the company.