Three more names have been put forward for investigation by two former Canterbury Earthquake Recovery Authority employees referred to the Serious Fraud Office.
Gerard Gallagher and Simon Nikoloff, along with Murray Cleverley, were investigated by former solicitor-general Michael Heron, QC.
Mr Heron found Mr Gallagher and Mr Nikoloff had committed serious misconduct in relation to claims they set up a private company to take part in a property deal they also had a hand in from the other side of the table as Cera government staffers.
Mr Heron said after the release of his findings on Tuesday that the parties dealing with the pair over a property in Christchurch's Manchester St believed they were dealing with Cera employees.
Yesterday, Andrew Kibblewhite, the head of the Department of Prime Minister and Cabinet, told Parliament's finance and expenditure select committee that three more names had been brought to their attention following allegations made against Mr Gallagher and Mr Nikoloff.
He told the committee, following questions by Labour's Canterbury spokeswoman Megan Woods, that while Mr Heron's report found there were not systemic issues, additional people were being investigated.
"There have basically been some suggestions that have been put up by the individuals who have proven to have acted inappropriately,'' Mr Kibblewhite said outside the committee.
"We are looking at specific allegations that have been raised. If they lay down tracks that we need to follow further, that's absolutely what we'll do.''
He expects that investigation to happen quickly, taking weeks rather than months.
Christchurch Regeneration Minister Gerry Brownlee said yesterday he was not aware of the specific allegations made by Mr Gallagher and Mr Nikoloff.
"I think Mr Heron would have outlined them a little more strongly in his report had there been greater concern on his part.
"He's right to highlight it and we're right to investigate it,'' he said.
Mr Brownlee did not believe there needed to be a wider investigation.
Inside the committee room yesterday the questions to Mr Kibblewhite came in quick succession from Labour MPs Ms Woods and Clayton Cosgrove, and from New Zealand First leader Winston Peters, with a particular emphasis on the conflict of interest agreements signed by employees.
Questions were asked about why there were so many human resources staff members if they were not going to check basic conflict of interests.
Mr Kibblewhite said there was a policy that all employees had to register conflicts of interests and update that register but that Mr Gallagher and Mr Nikoloff did not comply.
Mr Gallagher and Mr Nikoloff said in a statement any fault in their action rested with poor advice given by their bosses, who did not advise them of possible conflicts of interest.
"We trusted (relied on) the people around us to provide the necessary advice,'' they said.
"They chose not to advise us there was a potential conflict. We acknowledge we should have declared what we were doing in writing.''
Ms Woods suggested there was a "sloppy culture'' within Cera regarding conflict rules and that it started at the top down, but Mr Kibblewhite rejected those assertions.
The State Services Commission said Mr Cleverly was not involved in the other two men's business operations but should have shown better care and judgement.
