National deputy leader Paula Bennett is calling for Treasury Secretary Gabriel Makhlouf to be stood down while he is being investigated over whether he misled the Government.

But State Service Commissioner Peter Hughes has rejected that, saying this is not a situation that warrants that.

Yesterday, Hughes announced an inquiry into Makhlouf's advice to Finance Minister Grant Robertson, the basis for the advice, and his decision to refer the unauthorised access to Treasury's website to the police.

Deputy State Services Commissioner John Ombler will lead the investigation, and Makhlouf will continue to work while it was being carried out.

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But