The Post

Spying operation hosted without approval

- Thomas Manch

The Government’s electronic spy agency hosted a foreign intelligen­ce spying system for years without the approval of its minister.

The spying system hosted by the Government Communicat­ions Security Bureau (GCSB), which may have contribute­d to the foreign country’s military targeting from 2012, was only “rediscover­ed” during an internal audit in 2020.

Limited details of its existence were made public by the intelligen­ce agencies watchdog, Inspector-General of Intelligen­ce and Security (IGIS) Brendan Horsley, yesterday in a report that criticised the GCSB’s lack of due diligence and failure to inform its minister – then-Prime Minister John Key.

“The details of the capability are highly classified, limiting the detail I can provide in a public report. Broadly, the capability produced intelligen­ce that could help find remote targets,” Horsley said.

“I was concerned that the bureau had apparently decided to host in New Zealand a signals intelligen­ce system controlled by a foreign partner agency without seeking ministeria­l approval and without subsequent­ly informing its minister of the system’s existence or purpose.

“I was concerned also that the bureau’s current senior leadership and legal team apparently knew nothing of the system until it was brought to their attention in 2020.”

The spy agency agreed to host the foreign country’s capability in the years before claims of mass surveillan­ce spying made headlines and became a political controvers­y for Key’s government. A review of the agency in 2013 found major organisati­onal problems at the GCSB.

Prime Minister Christophe­r Luxon said the inspector-general’s report was about “historical issues”, and the actions of the bureau were consistent with legislatio­n at the time, legislatio­n which had since been strengthen­ed.

“But we take on board those learnings, and I know the agency will take that very seriously, as well as the minister.”

Intelligen­ce Agencies Minister Judith Collins and the GCSB have both also insisted that the bureau has significan­tly changed in the decade since it decided to host the foreign spy agency’s system.

The IGIS largely agreed that significan­t developmen­ts in the GCSB, its laws, and policies had “reduced the risk that the shortcomin­gs I have identified might recur today in a similar situation”.

“I also consider it is less likely that the bureau would implement such an arrangemen­t as poorly as it did in this case.”

Horsley said that from 2009, the GCSB considered hosting the spying system, which he said had the potential to be used with other intelligen­ce sources to support military actions against targets.

The sensitivit­y of this was identified by senior GCSB officials at the time. Then director-general Sir Bruce Ferguson reportedly had “no problem” with it being hosted, though legal and policy issues and “oversight concerns” with it were raised.

By 2011, an agreement with the country was being prepared. Then-director-general Simon Murdoch suggested in an email that the minister should potentiall­y be consulted. However, under subsequent director-general Ian Fletcher in 2012, this did not occur, and no record could be found of briefing the minister.

“It was improper, however, for the GCSB to decide on hosting the capability without bringing it to the minister’s attention. By doing so, it failed to respect and enable ministeria­l control of the agency,” Horsley said.

The spying hardware, Horsley said, had “collection and processing suites” and was “a data-sharing mechanism, not a collection activity”.

It was installed at a GCSB facility in 2012. However, Horsley said its operation was not adequately recorded by GCSB staff,and there was a lack of due diligence and visibility about how it was being “tasked”.

Collins, who was unavailabl­e for an interview yesterday, said in a statement the GCSB today “is not the one reflected in this report”.

“While this report covers events from more than a decade ago, it highlights what were unsatisfac­tory operationa­l processes of that time, albeit in line with legislatio­n of the day.”

Collins said she was satisfied there had been significan­t change at the GCSB since, including how the agency “works with my office”. There was also new legislatio­n, and a strengthen­ed Office of the Inspector-General that provided robust oversight.

GCSB director-general Andrew Clark said in a statement the review of “what could be described as a ‘historical issue” would help to “refine our current processes that ensure we act with propriety in everything we do”.

The GCSB agreed to the inspector-general’s recommenda­tions, which included auditing its systems, compiling “a register of collection or analysis capabiliti­es in New Zealand that are operated by foreign partners”, and to review its internatio­nal agreements within specified time frames.

 ?? ?? A photo of the inside of the a dome at the Waihopai spy base, which began operating in 1989, and ceased operations in recent years.
A photo of the inside of the a dome at the Waihopai spy base, which began operating in 1989, and ceased operations in recent years.

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