I am sure our friends in New Zealand are always trying to move away from the affectionate stereotypes portrayed in Flight of the Conchords but this has just set back those efforts years
New Zealand intelligence failed on fantasist scientist
British-born Stephen Wilce was hired as chief of New Zealand's Defence Technology Agency in 2005, having got top level security clearance.
Last year it emerged that he had made a series of false claims about his past.
Mr Key then ordered an inquiry by the State Services Commission (SSC).
As head of the DTA for five years, Stephen Wilce oversaw 80 staff and had access to highly classified intelligence.
He resigned in September 2010 after a TV programme revealed he had falsely claimed to be a former Royal Marine and to have raced in an Olympic bobsleigh event against the Jamaican team depicted later in the movie Cool Runnings.
A separate military inquiry concluded last year that Mr Wilce had embellished claims about his former military work, academic qualifications and life experience.
Investigators uncovered other fabrications: for example, the scientist reportedly told colleagues that he had served as a helicopter pilot with Prince Andrew, and that he had been a spy with British intelligence.
He also apparently claimed he had designed the Polaris missile guidance system, been a member of the Welsh rugby union team and had a career as a guitarist on the British folk music circuit.
Mr Wilce told the investigators he had been telling tall stories about himself since childhood.