Ahmed Zaoui provided information to the Security Intelligence Service on Algerian groups with terror links which has been passed to the American CIA, intelligence sources say.
One of the reasons given yesterday for the SIS deciding Mr Zaoui is no longer a threat to New Zealand was that he had become “more candid” in his disclosures to authorities.
Both parties backed down to reach the unorthodox and face-saving compromise which allows the Algerian to stay in New Zealand under a written promise of good behaviour and co-operation with the SIS.
In a further twist, the intelligence source in Europe added that the CIA had been seeking information through the SIS on a former associate of Mr Zaoui, Anwar Haddam.
“Zaoui clearly gave [the SIS] all the information he had, just as he did the DST [French domestic intelligence service] when he was in France,” the source added.
From France last night it emerged Mr Zaoui fears he could be targeted by former associates.
“Zaoui isn’t a danger any more, he hasn’t been for a few years and certainly won’t be if he stays in New Zealand,” the European intelligence source said.
Under the agreement, brokered by SIS director Warren Tucker, Mr Zaoui says the previous SIS chief, Richard Woods, was justified in issuing a security risk certificate against him when he arrived in 2002 and the SIS was justified in keeping it in force.
Among the promises Ahmed Zaoui swore on the Koran as part of the deal:
* I undertake not to engage in any activities that are not consistent with NZ’s laws or security interests, in particular the Crimes Act and Terrorism Suppression Act.
* I will not publish in any form any statements that could be interpreted as promoting violence. [blanked out]. If I am unsure about whether a proposed statement might be interpreted this way I will consult first with the SIS.
* I will not contact any intelligence agency of another country unless I first consult with the SIS.
* I will advise the SIS if I am contacted by any intelligence agency of another country.
* I will advise SIS if I have been in contact with [blanked out] and will advise the nature of the contact.