New Zealand’s state-owned Accident Compensation Corporation (ACC) has launched an independent inquiry into a privacy breach after a claimant was mistakenly sent details of more than 6700 cases.

Former Australian Federal Privacy Commissioner Malcolm Crompton and consultants KPMG will conduct the inquiry, which will investigate not only the privacy breach but also whether there are organisational weaknesses in how the ACC handles privacy.

The inquiry’s report is expected to be completed within three months and will be made public.

The privacy breach has indirectly claimed the head of ACC Minister Nick Smith, who last week had to resign his ministerial portfolios.

Dr Smith was ACC Minister last July when he provided a letter to friend Bronwyn Pullar about a compensation claim she had made. He then wrote a second letter on her case without declaring a conflict of interest.

In a tearful statement in Parliament in Wellington last week he acknowledged he had exercised poor judgement and resigned his ministerial portfolios.

Ms Pullar has been named as the whistleblower who went public about a breach of privacy at the ACC after she was mistakenly sent details of the 6700 claimants.