It's worth noting that in NZ, the Prime Minister is also the Minister overseeing the GCSB. He has to sign off on all surveillance warrants, too. So at the very least it's a huge and public failure in his department; at the worst, he's complicit in illegal surveillance.
It's yet to be seen what his involvement is, but his whole involvement in this case has reeked of ass-covering and distancing. It'll be interesting to see the outcome of this inquiry.