ASIO has hit back as a "misleading" statement by an ex-fighter pilot's family that rebuffed claims by Australia's domestic spy chief concerning the former top gun.
Former US Air Force pilot Daniel Duggan has spent 16 months on remand as the Australian citizen fights extradition to the US over claims he trained Chinese pilots.
The circumstances leading to his arrest in regional NSW in October 2022 were subject to an inquiry by the spy watchdog after Mr Duggan raised ASIO's role in 10 matters.
In a discussion about oversight, ASIO Director General Mike Burgess said he welcomed the scrutiny of the Inspector-General of Intelligence and Security, adding it offered an ability to defend his organisation given his spies could not speak publicly.
"It's been completed and all allegations unfounded," Mr Burgess told a Guardian Australia podcast published on Sunday.
"That's a great example of how oversight can help defend us."
But the Duggan family on Tuesday said a letter from the inspector-general acknowledged he had found impropriety.
"Additionally, to the elements of Mr Duggan's complaint as such, I found that that one activity did transcend the bounds of propriety in one respect, full details of which are set out in the classified report," the letter dated August 2023 to the pilot's lawyers said.
The legal team has however been unable to view the classified report as part of its extradition battle, the pilot's wife said.
"What happened to the concept fair go, when ASIO is allowed to use the media to whitewash its involvement in the case behind a veil of secrecy and classified reports," Saffine Duggan said.
"It's now time for the prime minister and attorney-general to prove the value of Australian citizenship and how much they will protect our nation's sovereignty when it comes to matters involving our most powerful ally."
The inspector-general declined to comment when contacted by AAP about the discrepancy between remarks by the Duggans and Mr Burgess.
After AAP approached ASIO, a spokeswoman accused the Duggans of issuing a misleading statement.
The inspector-general had dismissed all elements of Mr Duggan's complaint and did not identify any acts of illegality by ASIO, she said.
"IGIS (the inspector-general) found that ASIO did not use Mr Duggan's application for an Aviation Security Identification Card to 'lure' Mr Duggan back to Australia," she said.
"IGIS found that one ASIO activity raised a propriety issue, but this did not affect the IGIS's conclusion about the lawfulness of ASIO's activities.
"The IGIS report is unequivocal in its findings that ASIO acted both ethically and within the law at all times in matters regarding Daniel Duggan.
"Therefore, the statement from Mr Duggan's public relations company is misleading."
In the podcast interview, Mr Burgess said all Australians had the right to raise allegations with the inspector-general.
Duggan, who denies the US charges against him, will ask a Sydney court on Wednesday for more time to fight his extradition after applying for Legal Aid.
That came after a court upheld a freezing order over a multimillion-dollar property Ms Duggan had tried to sell to fund her husband's defence.
