Taxpayer-funded private investigators spied on Christchurch earthquake victims, a Newshub investigation has found.



State-owned insurer Southern Response employed private investigators to snoop on claimants, gathering various types of information on them.

Newshub inquiries have forced the Government to set up an investigation, which was announced by the State Services Commission (SSC) at 11am today.

SSC Commissioner Peter Hughes says information he's seen "raises questions around compliance with standards of integrity and conduct for State servants."

Newshub notified the Minister for Christchurch, Megan Woods, who called in the State Services Commission.

Mr Hughes will set terms of reference for the inquiry by the end of next week.

Newshub.