New Zealand's spy agency GCSB has been accused of erasing evidence relevant to Megaupload founder Kim Dotcom's case. The Web tycoon claimed that some of the lawyers, who represented the spy agency, had revealed that some communications have been "automatically aged off" and they suggested using information which are "still recoverable."

Kim Dotcom tweeted his claims about the GCSB on Feb 3 which provoked calls to investigate New Zealand's spy agency.

Grant Robertson, Labour party associate Security and Intelligence spokesman, told 3news that if Dotcom's accusations were proven right, it brings "serious implications" to his case. Mr Robertson also recalled that Prime Minister John Key claimed in 2012 that the spy agency "does not delete files" but only archives them.

However, Mr Key reacted to Mr Dotcom's statements and said they were "completely and utterly wrong." He said GCSB's legal documents are stored in the system and has to age off it when it's no longer relevant.

In 2012, the U.S. authorities had taken down Kim Dotcom's site Megaupload which had 50 million visitors per day prior to its shutdown.

After shutting down the Megaupload site, the U.S. government sought to extradite Mr Dotcom which forced New Zealand authorities to take him into custody. The investigation still continues with Mr Dotcom filing a $6.9 billion case against GCSB for raiding his house in 2012.

New Zealand military develops spy drones

Despite the spy agency's embroilment in a lawsuit, New Zealand's military is reportedly developing high-tech spy drones. According to the Herald, aside from the spy drones, seabed mines are also in the works.

The new drones and systems will be sold to military superpowers around the world. New Zealand's Defence Technology Agency (DTA) is in-charge of development. The agency has 80 non-military scientists, technicians, engineers working in Devonport Naval Base, Auckland. The team is helping New Zealand play a small but significant role in developing military hardware in the global market. The market for spy drones is expected to be a $89 billion industry by 2020.