The head of Parliamentary Service says he's unwilling to settle an employment dispute with the man who sued the Speaker after being accused of rape.
The man was suspended then lost his job following an alleged sexual assault matter which was highlighted in the 2018 review into bullying and harassment at Parliament.
Two women have made complaints about the man and it can now be revealed the police were called in.
The man - who worked in security - has taken an employment case with Parliamentary Service which has spent $37,500 on legal advice.
Parliamentary Service chief executive Rafael Gonzalez-Montero was interrogated about the case by National MPs at a select committee meeting this morning and said he refused to settle with the man.
"I am not willing to settle with anybody that I believe has done something wrong. If we get taken to court and we lose, I'd rather lose because we've done the right thing."
It's understood mediation in the case has failed and it's now up to the man whether he takes his case to the Employment Court.
The man has consistently denied any wrongdoing.
The Debbie Francis report, released in May 2019, said one of the staffers spoken to said their written formal complaint about an alleged sexual assault didn't result in the accused being suspended and took several months to investigate.
And the woman was never told the outcome of the investigation.
The man was suspended with pay when the report came out. Speaker Trevor Mallard then told RNZ after reading the review it was his interpretation that people had been raped at Parliament.
"We're talking about serious sexual assault, well that, for me, that's rape ... that is the impression I get from the report, yes."
He later told reporters a staffer had been stood down and a "threat to the safety of women" removed.
The man then sued Mallard for defamation. The Speaker settled the case which cost taxpayers more than $330,00, formerly apologised to the man and said his interpretation of rape was incorrect.
National MP Michael Woodhouse questioned Gonzalez-Montero over why the man was suspended in May but the investigation was only re-opened in June.
He also asked what the Speaker was told before the report came out.
Mallard told a select committee in December he'd had ongoing discussions with Francis about the "serious situation".
Gonzalez-Montero said today he'd also told the Speaker under the "no surprises policy" there "was something happening in security" and he was thinking about re-opening the case.
The chief executive said he'd been contacted by one of the complainants in December after the select committee meeting where Mallard was grilled about his $330,000 settlement.
"I was approached about one of the complainants who was extremely upset about the rhetoric ... and the question was, 'Why is everybody interested in this person who created so much pain for us but nobody's actually looking into what they did?'."