Kim Dotcom and opposition parties want a commission of inquiry into the Government Communication Security Bureau's (GCSB) illegal spying but Prime Minister John Key isn't going to order one.
Mr Key commissioned an inquiry by the Inspector-General of Intelligence and Security, Paul Neazor, which was released on Thursday.
It concluded the police and the GCSB were confused about Dotcom's status as a New Zealand resident, hadn't understood the implications of a 2009 immigration law change and, without checking, went ahead and spied on Dotcom in December and through to January 20 when he was arrested on allegations of internet piracy.
The GCSB is forbidden by law to spy on citizens and residents, and opposition parties say Justice Neazor's inquiry was "a whitewash" because it didn't cover Mr Key's role as minister responsible for the agency.
After the report was released, Dotcom tweeted: "Numerous unlawful acts against us by the New Zealand government have been exposed, it's time for a full, transparent and independent inquiry."
Labour leader David Shearer says the inquiry ignored Mr Key's "complete failure of democratic oversight" while NZ First leader Winston Peters describes it as "too little, too late for an issue of national and international importance".
Mr Key says it isn't necessary to have another inquiry.
"We know what's wrong, we know what we have to do to fix it," he said on Wednesday night on TV One's Close Up programme.
Mr Key acknowledged he was accountable for the GCSB but said the agency had responsibility for its day-to-day operations.
"I don't sit there every day looking over their shoulders."
In Parliament, opposition MPs said Mr Key should have known what was going on.
"To say he can't know anything about its operations is just horse shit, it's absolute nonsense," said Labour's Trevor Mallard.