Yes it was the Government's package and (thus far) four states (Bavaria, Baden-Wurttemberg, Brandenburg and Lower Saxony) have admitted to using it; but the Federal Government continues to deny any use.
Despite a very clear Constitutional Court ruling banning any spyware package with the abilities described by CCC, various authorities have claimed that the states have been operating entirely within the law. Bavarian Interior Minister Joachim Herrmann, for instance claimed that he saw no problem with the use of the Trojan to track down criminals.
Except the part where it was declared illegal by the Constitutional Court, of course.
Federal Justice Minister Sabine Leutheusser-Schnarrenberger has asked for an investigation; "Trying to play down or trivialise the matter won't do," she said. "The citizen, in both the public and private spheres, must be protected from snooping through strict state control mechanisms."
WikiLeaks is also involved.