I had this problem too, even though I killed Kunar. No matter what I changed, Z'Ant always denounced me.
So, (spoil)
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I went to Yamir first. He accepted me and when I went back to Z'Ant I had the Yamir letter in hand, and I gave it to him instead of talking to him. Voila! No more being denounced.
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When in doubt, cut it in half.
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