Judith Collins, the Justice Minister, has released Justice Ian Binnie’s report into the claim, but the Government must still decide whether to commission a fresh report.
Justice Binnie, a retired Canadian judge, recommended a payout and highlighted “egregious errors” by police in Dunedin that “led directly to the wrongful conviction”.
He also blamed Robin Bain, David’s father, for the killings of his wife and three of their children.
However, Collins also released a peer review by Robert Fisher, QC, which criticised Justice Binnie’s findings.
He listed 11 errors, suggesting Justice Binnie disregarded key evidence and that he was generous towards David Bain’s version of events.
Ms Collins told Fairfax NZ that it was “unacceptable to and unfair to New Zealanders” to take recommendations to Cabinet based on a “flawed” report.
She said it was clear that there needs to be “something of a review” of the two reports.
Together the two reports cost $500,000, and any new review could make the total cost to taxpayers over $1 million.
David Bain could get up to $2m in compensation, although Collins didn’t want to put a price on justice.
“If Mr Bain is innocent, then a great injustice has been done to him over the years. If Mr Bain is not innocent and we were just to pay out money, then a great injustice would be done to a great many people,” Collins said.
David Bain was jailed in 1995 for the murders the previous year.
He served over 13 years in jail before his convictions were overturned by the Privy Council.
He was found not guilty in a new trial in 2009.