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The Kiwis have been stripped of their two Tri-Nations points and lost hooker Nathan Fien from the rest of the tournament in one of international rugby league's darkest days.
The New Zealand Rugby League this evening issued an apology over the decision to play Australian-import Nathan Fien for
the Tri-Nations championship that has cost the defending champions dearly.
The Rugby League International Federation (RLIF) and Australian Rugby League (ARL) chairman Colin Love announced the penalty at a Sydney press conference after the RLIF executive committee ruled Australian-born Fien was ineligible.
Love said the New Zealand Rugby League (NZRL) was aware on October 19 that Fien's great-grandmother, not grandmother as had previously been claimed, was born in Wanganui but didn't tell the ARL when it queried Fien's selection.
The Kiwis lose their two points from their 18-14 win over Great Britain last Saturday but the points weren't awarded to the Lions.
Both teams' points scored have also been expunged from the tournament's for-and-against records.
Fien, who becomes eligible in October next year through his three-year Auckland residency, left the Kiwis squad today and was understood to be heading to Australia.
The NZRL said in a statement after the decision was announced in Sydney today that it regretted the error it made and sincerely apologised to all the players, teams, fans, clubs and stakeholders.
"The NZRL accepts it made an error," the statement released by NZRL general manager Peter Cordtz said.
"The NZRL confirms that it will not challenge the decision.
"Nathan Fien acted honestly at all times in his disclosures to the NZRL.
"Accordingly, Nathan Fien had no charge to answer; nor did any other person.
"The NZRL regrets any hurt suffered by Nathan and his family."
In Greymouth, Kiwis coach Brian McClennan had no sooner arrived with the squad in the West Coast town than he had to tell players last weekend's efforts had essentially been in vain.
He would not discuss Fien's departure from the squad and the implications of the two-point penalty.
McClennan preferred to concentrate on the Kiwis' first visit to Greymouth since a test against Great Britain in 1954.
"That's our job. The players' role is to enjoy their football," he said.
"We're all just getting stuck in to what we can do and try and some positive things."
ARL chairman Mr Love said the Fien incident was "terribly disappointing".
"The game is based on trust between the nations and we've acted accordingly," Love said.
"We're told they acted in good faith, but it was never communicated to us that it was Fien's great-grandmother and not his grandmother who was born in New Zealand."
Asked if he could remember a darker day in the sport, Love said: "I don't think I can, not since I've been involved."
"I don't know whether it's deceit. We're told that it was an honest mistake that this information wasn't communicated to us, but we're certainly disappointed."
The RLIF constitution says a player is eligible if his parents "or any of his grandparents" were born in that country.
NZRL chairman Selwyn Bennett insisted that included great-grandparents, and that was what the NZRL lawyers argued in a written submission presented last night.
Today's telephone link between the RLIF executive committee of Love, Bennett, Great Britain boss Richard Lewis and National Rugby League chief executive David Gallop, spanned six hours including an adjournment for Lewis to read the NZRL submission.
Love and Lewis voted to strip the Kiwis' points while Bennett voted against. No fine was imposed.
"In order to protect the integrity of the competition and the game in general, the committee regarded itself as having no alternative," Love said.
"He (Bennett) didn't agree with the decision but he had to accept it."
Love said Bennett, who claimed the international rules needed an overhaul, gave no indication of any possible legal action.
Love gave a "no comment" when asked if he thought Bennett should resign.
"Any organisation can always improve its rules, but as far as this rule is concerned I've got no doubt in my mind what grandmother means and I don't think too many other people have too.
"It causes me great angst to take the action that we have.
"You've got a team of players that busted their collective gut to win that match. To have the points taken away from them is pretty dramatic."
Great Britain coach Brian Noble this week called for the Kiwis to lose their points for breaking the rules while Kangaroos coach Ricky Stuart called Fien's selection "an embarrassment" to the Kiwis.
Today's developments mean the Kiwis can still defend their title in the November 25 final if they beat Great Britain in Wellington on November 11, and Great Britain lose both their matches to the Kangaroos.
- NZPA
