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It's a "monumental fail" for government departments to contain almost 1,000 surveillance and recording devices manufactured by Chinese companies which are part-owned by the Communist Party, says Sky News host Peta Credlin.

"The worry, especially with these Communist-Party linked companies, is that their software could be coded to give Chinese spy agencies a back door into all their data," Ms Credlin said.

"Data from places inside our Defence department, or Foreign Affairs, or other corridors around Canberra.

"I don't blame the politicians here ... but really and truly, the bureaucrats should have been on top of this."