NZ-US links factor in Dotcom case

Concerns over New Zealand's diplomatic relations with the United States were a factor in the Government's decision-making during the legal battle over Kim Dotcom's assets.

The link between the Dotcom case and the relationship with the US has emerged from heavily censored official documents obtained under the Official Information Act.

They show the Ministry of Foreign Affairs and Trade (MFAT) was included in meetings briefing officials on how aspects of the case could affect relations with the United States.

At issue was whether the New Zealand Government would meet a High Court demand to give a written assurance of legal liability if Dotcom later took a damages claim. If it did not give the undertaking, it faced the possibility Dotcom would be given back all the assets seized in the dramatic January raid on his mansion.

The documents obtained covered the process which later led to cabinet ministers nominating police as the agency to be sued if Dotcom took a case against New Zealand.

In an email on March 5 - before the first meeting on the issue - the Crown Law Office's criminal team leader, Madeleine Laracy, wrote: "Penny Ridings [international legal adviser from MFAT] will be there to enunciate the implications in terms of the diplomatic relationship with the USA were NZ for this reason not able to pursue the FRO [foreign restraining order] proceedings."

Much of the information from the Ministry of Justice was censored because it "would likely prejudice the international relations of the government of New Zealand".

Information withheld included an email on March 23 from the Justice Ministry to the Ministry of Foreign Affairs and Trade titled: "Meeting with [US] Ambassador [David] Huebner: Talking Points on Extradition."

Mr Dotcom says the emails show the case against him is politically driven.

"This is a highly political case. There is no doubt in my mind that from the beginning, the executive of New Zealand was deeply involved in everything that has happened."

Mr Dotcom said the case against Megaupload was driven by US politicians acting at the urging of Hollywood.

Mr Dotcom was arrested at the urging of the FBI in a global operation against his Megaupload file-sharing company.

His assets and fortune were seized under a civil order to restrain the alleged proceeds of crime.

When it emerged the Crown Law Office had used the wrong sort of legal order, the High Court said any new order would be granted only after an "undertaking of liability" from the Crown. In effect, it required the Crown to accept the possibility of a lawsuit and to nominate a public body which would defend the case.

In April, one of Mr Dotcom's lawyers, William Akel, said the Crown faced the risk of "very large damages" if it could be shown the restraining order should not have been made.

At least five Government ministers were involved in the email trail, resulting in the police department accepting it would be the legal respondent for an "undertaking as to damages".

Police Minister Anne Tolley and Attorney-general Chris Finlayson were directly involved, and the papers show Finance Minister Bill English got copies of emails.

Justice Minister Judith Collins and Foreign Minister Murray McCully were also kept informed.

 

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