Canterbury earthquake claimants who were spied on are calling for heads to roll at the Government-owned insurer, Southern Response.
It was their cases that triggered the inquiry and 1 NEWS was with some of them when a report into the use of private investigators Thompson and Clark was released today.
As frustration with Southern Response mounted, some of their claimants were seen as a potential threat.
"I had a knock one morning on the door. And the cops were there, and I was eating my cornies," Southern Response claimant Cam Preston said.
The inquiry looked at 131 state sector agencies and investigated whether public servants or contractors breached the State Service code of conduct in their use of security consultants, including Thompson and Clark Investigations Limited (TCIL).
It found Southern Response, a Crown company, acted inconsistently with the code of conduct when TCIL on the agency's behalf, attended and recorded several closed meetings of insurance claimants.
"While the problem is not widespread, we need to do better, and we will," said State Services Commissioner Peter Hughes.
Southern Response refused to be interviewed, issuing a statement, including an apology, in writing.