Davies returned to New Zealand this week after being dismissed from the team following the allegations.
The 60-year-old, who has an artificial leg, admitted the incident occurred as he and some Games' volunteers were discussing a streaker who had appeared at the bowls venue.
He said the volunteers wanted to know what the streaker looked like.
Davies claimed he clumsily attempted to demonstrate by holding a female volunteer with his hands on her breasts.
Davies admitted it was a foolish gesture and one which would haunt him for the rest of his life.
He was a member of the New Zealand triples team who were withdrawn from the competition.