Prime Minister John Key says a decision by the Auditor-General on the appointment of Ian Fletcher as director of the Government Communications Security Bureau shows the Labour Party's claims were wrong.
The Labour Party last week asked the Auditor-General to investigate the process in which John Key rang Mr Fletcher to ask him to apply for the job.
In a statement on Thursday the Office of the Auditor-General said while the process initially envisaged by the State Services Commission did not eventuate, that did not require investigation.
Speaking from Beijing, Mr Key said the Auditor-General's decision not to investigate shows he acted above board and there is nothing to investigate.