The Government's overhaul of its spy agency is being described as "nothing more than an internal audit".
Labour leader David Shearer says seconding cabinet secretary Rebecca Kitteridge to oversee the shake-up of the Government Communications Security Bureau (GCSB) means Prime Minister John Key's role will be covered up.
"This move is simply damage control," Mr Shearer said.
"John Key is desperately trying to isolate an issue that goes well beyond the actions of junior officers in the GCSB to the top of the chain of accountability."
Ms Kitteridge is being sent to the GCSB to review its capability, governance and performance after the agency caused an uproar by illegally spying on internet tycoon Kim Dotcom.
The agency's director, Ian Fletcher, is reviewing what happened and Mr Key says he's looking for who is responsible.
"I would expect people to be held to account," he said at his post-cabinet press conference yesterday.
Asked whether that meant people could lose their jobs, he said it wasn’t up to him.
"They may do, that's up to the director."
The GCSB didn't know Dotcom was a resident when it spied on from December 16 to January 20, the day he was arrested on allegations of copyright piracy.
The agency is forbidden by law to spy on citizens or residents.
An investigation by the Inspector General of Intelligence and Security, Paul Neazor, found the police and the GCSB were confused about Dotcom's status and didn't consider the implications of a 2009 immigration law change.
NZN