The investigation cleared the senior officer of any wrongdoing, finding her actions were "consistent with those of other project managers carrying out the same or similar works projects".
Weekend Herald inquiries into the events have revealed an extraordinary navy property portfolio on Calliope Rd above the Devonport Naval Base.
The portfolio of 21 houses includes one with a government valuation of $4.1 million reserved for visiting dignitaries - and the Chief of Navy when he is visiting Auckland. The multi-million-dollar homes are reserved for officers and likely to be the best housing deal in Auckland with the rents set at what an NZDF briefing document said were Manawatu levels. In the case of the house at the centre of the NZDF inquiry, the rent on the four-bedroom $3.15 million home is $195 a week.
The Weekend Herald sought information about the renovation through the Official Information Act and was told the report would not be released because it contained "free and frank" advice from officials.
The navy reversed the decision yesterday afternoon, releasing a summary of the inquiry's findings. It showed the commander had taken over renovation projects to take pressure off other staff. The inquiry report said the renovation came after two inspections - the first by a building contractor who rated the property "in average condition". The commander then carried out a "back-up inspection" and decided the house needed maintenance to get up to the expected standard across the region.
Although the commander would move into the property once the renovations were done, she was not aware at the time the work began on the house. The $80,000 price tag was at the upper limits of the renovations done across the northern region.
About a week before work on the property was completed, the property was assigned to the commander. The tenancy agreement was signed on August 14, about a month before the inquiry took place.
Navy Chief of Staff Commodore Ross Smith said the inquiry was sparked by an anonymous complaint. He said the process followed and work done was consistent with the NZDF housing programme.
He said the housing allocation and property management areas were in different branches of the military. He said the navy decided who was living in its houses while maintenance was organised by the NZDF.
An NZDF spokesman said 16 of the 21 houses on Calliope Rd were for rental by its staff, and one other house reserved for visiting senior officers and international VIPs. Four other houses had been turned into nine flats used as temporary accommodation for staff moving between postings.
He said the rent for the house at the centre of the inquiry came from a formula agreed with IRD and in line with NZDF's housing policy. He confirmed NZDF paid its own rent.
Council rating records show the houses owned by the navy have government valuations upwards of $1.7 million with the VIP house being valued at $4.1 million.
Real estate agent Victoria Bidwell, of Bayleys Devonport, said she had sold a number of properties on Calliope Rd and all went for well above government valuation. She knew of a 3-bedroom rental in Devonport on a small section which was $790 a week.
Ms Bidwell was unsure if the $195 a week would secure anywhere in Devonport.
