PM says paper's spy story 'a work of fiction'

By KEVIN TAYLOR and AUDREY YOUNG

Prime Minister Helen Clark has labelled as a "work of fiction" a newspaper story alleging the Security Intelligence Service improperly spied on Maori organisations and individuals.

She said in Chile at the Apec summit that SIS director Richard Woods had told her the articles published in yesterday's Sunday Star-Times were fiction.

Written by a staff journalist and Wellington freelance security writer Nicky Hager, the articles allege SIS operatives spied on Maori organisations and individuals over several years under the codename "Operation Leaf".

The newspaper says it spoke to three spies, including one who quit in September last year because he was "disgusted at a system that was spying on decent, law-abiding New Zealanders".

The articles allege the SIS was going well beyond its statutory role by targeting Maori organisations and individuals, including respected Maori leaders and politicians like Maori Party co-leader Tariana Turia.

Surveillance methods included bugs planted in computers by "computer geeks" recruited to engineer contact with Maori groups.

Operatives were told to gain intelligence on iwi business negotiations, finances, Treaty of Waitangi claims and inter-tribal communications. They were also instructed to watch for "dirt" on Maori leaders.

After a six-week investigation the newspaper said in an editorial that it was left "troubled and disturbed" and the allegations demanded an independent inquiry.

Helen Clark, who usually does not comment on security matters, broke with convention to challenge the newspaper to produce its witnesses.

"Bring them out in the open and then the credibility can be tested," she said. "But my advice as minister from a long-time public servant is that it is a work of fiction."

She said the law made it clear the SIS had to respect rights that allowed lawful dissent and advocacy, and it could not take any interest in political parties.

Helen Clark said the allegations were not credible unless the men fronted up through the appropriate channels.

She was referring to the Inspector-General of Intelligence and Security, who can inquire into complaints from former SIS employees. The inspector-general, Paul Neazor, QC, could not be reached last night.

The Sunday Star-Times said the spies had claimed the Maori Party was also a target, confirming an earlier report on news website Scoop.

Mrs Turia, who had not believed the earlier Scoop report, said yesterday that she was stunned by the revelations.

She would take legal advice today about the legislation governing SIS activity, and would also discuss the issue with other Maori leaders.

After the Scoop allegations came out, Mrs Turia met Mr Woods and she said he gave her an "absolute assurance" they were untrue.

But she told the Herald she had also confronted him about the discovery that her ministerial home had been bugged.

Before she left the Labour Party she had discovered the phone at the home had been tampered with - a discovery made by a security company sweeping for bugs.

The Scoop story also named two other Maori - Tauranga-based Ngaiterangi iwi chief executive Brian Dickson and Port Waikato-based Ngati Te Ata iwi member Whititera Kaihau - as being singled out for investigation. Neither could be contacted last night.

Mr Hager - who wrote a controversial book before the 2002 election alleging a Government coverup of GM corn contamination - would not comment yesterday.

Meanwhile, Green list MP Keith Locke backed the call for an inquiry, saying the allegations showed the SIS was going way beyond its legal mandate and was engaged in "political harassment".

"The SIS has no justification in spying on Maori organisations whose only crime is to disagree with Government policies."

Auckland Council for Civil Liberties president Barry Wilson said parliamentary oversight of the SIS was inadequate.

Parliament's intelligence and security committee was simply a "rubber stamp" for the SIS's activities, he said.

The committee was set up under 1996 legislation to boost the level of oversight.

Mr Wilson said the law prevented the SIS spying on people engaged in political activity.

"The difficulty is that they make the decision over whether the activities of a person are simply a lawful protest or whether they are of a subversive nature."

The SIS

* Founded as the "New Zealand Security Service" in 1956 and operates under the NZSIS Act 1969 and amendments.

* Civilian organisation with no police powers and no authority to enforce the law. Its role is advisory - collecting intelligence relating to security, assessing and analysing it, and advising the Government.

* The director of security, Richard Woods, reports directly to the Minister in Charge of the SIS, Prime Minister Helen Clark.

* A budget of nearly $17 million and 140 staff.