Thompson & Clark markets itself as experts in investigations, detection, protection and security.

Under-fire spy firm Thompson & Clark has been dumped as a preferred supplier to Government agencies.

The security firm was on an all-of-Government procurement panel, making them a pre-approved provider of protective security.

But a Government inquiry has censured a number of agencies for using external security consultants. Their report found earthquake victims were potentially illegally recorded at a private meeting. Public servants were also moonlighting for Thompson & Clark and passing on sensitive Government data.

State Services Commissioner Peter Hughes asked the Ministry of Business, Innovation and Employment to remove the firm from its procurement panel.

READ MORE:

* Rotten to the core: The chilling truth revealed by the SSC report

* Use of private investigators exposes carelessness about role of the government

* Public service bosses ignored warnings about Thompson & Clark for years

* Police officers caught moonlighting for security firms

* Security firm spied on politicians, activists and earthquake victims

A spokeswoman for MBIE confirmed: "On 18 December 2018 [Thompson & Clark] were served with a notice to terminate their position on the All of Government (AoG) contract for Consultancy Services.

"No Government agencies have transacted through TCIL since they joined the AoG contract in December 2017."

ROSS GIBLIN/STUFF Simon Mount, QC, left, Doug Martin and State Services Commissioner Peter Hughes present a report into the use of private security firms by government agencies.

The inquiry covered 131 state sector agencies and uncovered failings across the entire sector, including multiple breaches of a code of conduct.

That includes police, and Maritime NZ and Ministry for Primary Industries staff moonlighting for the firm, using Government resources and passing on private information.

WHO WAS HIRING PRIVATE EYES?

The report, by Doug Martin and Simon Mount, QC, found Thompson & Clark and other security firms were hired extensively throughout the public service.

A number of contracts involved surveillance. Between 2014 and 2016, an unlicensed investigator pretended to be a disgruntled insurance claimant and attended and recorded several private meetings. The information was passed to Government insurance agency Southern Response.

The then-Ministry of Agriculture and Forestry asked them to attend two conferences of animal rights activists and liaise with a paid informant in 2005-06. The informant was paid at least $2000, some of which was contributed by MAF.

MSD and Crown Law asked Insurance and Commercial Investigations Ltd to dig up dirt on witnesses in a court case alleging abuse in state care. MSD also used private eyes in four cases of suspected fraud and to gather information on predatory traders targeting beneficiaries. The main investigator was an ex-police detective and the firm was paid $90,000 for six months work. There is no evidence of a written contract.

MBIE used private investigators to spy on activists in two investigations into the construction sector in 2015 - including one where there was no written contract. The intelligence gathered wasn't enough to prosecute - but it was passed on to the Serious Fraud Office and Inland Revenue.

ADVENTURE PICS Gavin Clark, ex-cop and founder of private investigators Thompson & Clark, pictured in 2007.

​MBIE also used Thompson & Clark to provide security at a petroleum conference.

The Foreign Affairs Ministry was involved in the hiring of Thompson & Clark, through a third party, for a TPP protest.

ACC uses external investigators for suspected fraud cases - but the report says their processes are appropriate.

The Department of Internal Affairs hired Paragon New Zealand to spy on two individuals who faced cancelled citizenship. There were no written contracts or safeguards.

Maritime New Zealand hired private eyes Securitek to conduct surveillance on a ferry, suspected of breaching regulations. MNZ's own staff had failed to observe any breaches so hired the firm to film loading and unloading for two days. They were paid $5000 and again, there was no written contract for "Operation Luna".

Ministry of Health used private eyes - including Thompson & Clark - as "mystery shoppers" and to enforce drug and alcohol regulations. The report said the ministry's contracting arrangements are out of date.

The Department of Conservation, Otakaro, and Te Papa all used the firm for security reviews.

Other agencies who hired Thompson & Clark included Niwa, AgResearch and Plant and Food.

Agencies - the Education Ministry, Land Information NZ, the Canterbury Earthquake Recovery Agency, Housing NZ and police - also used a Thompson & Clark offshoot - Cyclops Monitoring - to monitor and provide security cameras.

And Callaghan Innovation gave Cyclops Monitoring a $225,000 grant in 2014 to support development of their remote monitoring technology.

The report warns that using private firms for 24-hour remote monitoring "could potentially become a high risk activity".

"If widely used by different public and private companies, there is a potential for a single company to have the capacity to track individual movements in an invasive way."

The engagement of private investigators and the creeping surveillance came despite a warning from the State Services Commissioner Mark Prebble in 2008. After publicity about Thompson & Clark targeting environmentalists, he told agencies to approach police if they were worried about staff safety and security.

Thompson & Clark also had cosy relationships with a number of public servants. MBIE came in for stinging criticism for not maintaining a professional distance, a perception of bias and poor regulatory practice.

A DOC staffer was found to be overly familiar in emails, and an SIS agent risked harming the intelligence agency's reputation by helping the firm land work.

And the relationships went beyond emails. Police and agriculture and fisheries officers were caught moonlighting for the firm and passing on information from Government databases.

A Maritime New Zealand intelligence analyst was also allowed to take a second job with Thompson & Clark. The moonlighting was approved by his chief executive - a move the report's authors say should never have happened.

WHAT HAPPENED TO THE INFORMATION?

The inquiry found Thompson & Clark conducted "large scale surveillance" of Greenpeace both through watching them and extensive searches of Government databases.

They searched the motor vehicle and driver licence databases, run by NZTA. Thompson & Clark say they did so on behalf of police and MBIE but that is denied by both agencies.

SUPPLIED Southern Response chair Ross Butler resigned after the insurer used Thompson & Clark to monitor claimants.

A MAF (now MPI) employee worked for Thompson & Clark as a contractor between 2011-12 before leaving the ministry to work full-time for the firm. Over a period of 12 months, the staffer invoiced for work using specialist software, licensed by MPI, to collect and analyse information.

They also used a ministry laptop and email for the work, some of which was done while he was being paid by MPI.

Intelligence he worked on included information for investigation into the hacking of the Solid Energy website in 2011 and that collected on Greenpeace by Thompson & Clark for its petroleum industry clients and

The staffer created a chart detailing people, companies, buildings, and vehicle movements connected to Greenpeace.

He also worked on a timeline of the Pike River disaster - created for the mine's then chief executive Peter Whittall, who was one of Thompson & Clark's clients.

The report says the staffer had been affected by MPI's restructure and was "disillusioned".

A second MPI employee - who worked closely with the first employee, then started moonlighting for Thompson & Clark in March 2013.

The staffer obtained personal information from NZTA databases for the company. The report says the firm was not authorised to access that info - which included telephone numbers, dates of birth and driver licence numbers.

It was found by searching names and address - not licence plates - which is the only search a licensed private detective is allowed to undertake.

Both employees are now being investigated by the Serious Fraud Office.

Thompson & Clark were allowed to search the motor vehicle register for restricted reasons, but the report says their access likely falls outside the permitted purposes set down in law.

The report shows they used it more than 4000 times between 2011 and 2017 - referred to as high usage compared with other firms.

The firm ran thousands of searches on Greenpeace activists and other oil protest groups, including a swim protest, and a demonstration against Todd Energy.

In 2017, the firm applied for renewed - and broader - access but NZTA staff raised concerns and as a result their access was blocked.

Thompson & Clark also joined closed media groups and then passed information about Greenpeace's activities to government agencies, like MBIE and Niwa, although the information was originally gathered for the oil and gas sector.