Was New Zealand penny wise?

Remember Commodore Kevin John Keat? He's the New Zealand officer who was convicted by the Court Martial following an affair with a civilian employee? He secured a reversal from the Courts Martial Appeal Court but now is back at that court contending, among other things, that he cannot be retried because the service elected not to retain (and pay) him after his contract expired -- thus having lost personal jurisdiction. The Dominion Post reports:

One of the points argued at today's hearing was whether Keat was still subject to the military justice system.

The defence force could have deferred Keat's release to keep open all options in the disciplinary process but it chose not to because it wanted "justice on the cheap" to make an example of him, [defense counsel Michael] Bott said.

The court has taken the case under advisement.