Immigration Minister Erica Stanford has launched an extraordinary public criticism of officials within Immigration New Zealand and the Ministry of Business, Innovation and Employment (MBIE), following the collapse of a technology project that consumed more than $31 million and delivered no operational outcome.
Report by elocal
The comments follow the release of an independent review into Immigration New Zealand's Biometric Capability Upgrade project, a programme originally launched in 2018 and ultimately abandoned after years of delays, escalating costs and governance concerns.
Speaking to media following a parliamentary scrutiny hearing, Stanford said the findings raised significant integrity questions and had severely damaged her confidence in the advice provided by officials.
"I was misled," Stanford said.
"What I was told was pure fiction."
The minister confirmed Public Service Commissioner Sir Brian Roche will now oversee an independent investigation into the conduct of officials involved in the project.
A Project That Delivered Nothing
The Biometric Capability Upgrade was intended to modernise Immigration New Zealand's ability to process biometric information as part of visa and border security systems.
However, the independent review found the project drifted significantly from its original scope, encountered repeated technical failures and continued despite numerous warning signs.
The review concluded that more than $31 million had been spent with no measurable benefit delivered.
Stanford told MPs the project had effectively become a textbook example of what can go wrong in public-sector technology development.
"It was a doomed project from the start," she said.
"A flawed business case, scope creep, creative accounting, decisions kept away from Cabinet, misleading information and people being let go after raising concerns."
Allegations of Information Being Withheld
Perhaps the most serious aspect of the review relates to how information was communicated to ministers.
According to Stanford, officials failed to fully disclose escalating problems and repeatedly presented an overly optimistic picture of progress.
The minister said concerns raised by staff were not always reflected in reports reaching ministers and that some employees who questioned the project's viability were reportedly moved away from the programme.
"It is very difficult to trust officials when they are deliberately withholding information from you and providing misleading information," she said.
Stanford also revealed that the independent review itself had been sitting within MBIE for approximately two months before finally being provided to her last Friday.
"The more information that comes in, the more concerned I get."
Questions Over Cabinet Oversight
A major issue identified by the review was the handling of project costs.
Stanford alleged that officials used accounting practices that avoided triggering the level of Cabinet scrutiny normally required when project costs increase.
The minister said ministers were not always given the information needed to properly assess funding decisions.
"Things were done that required Cabinet oversight in order to keep it away from Cabinet," she said.
The project's whole-of-life costs reportedly rose substantially over its lifespan while the programme itself shifted from an off-the-shelf solution to a far more complex integrated technology build.
The review found that ministers were often presented with incomplete or overly optimistic information about the project's true state.
Confidence in MBIE Shaken
Stanford acknowledged that many MBIE staff continue to provide valuable advice and have worked constructively with her office.
However, she said the events outlined in the review had significantly damaged trust.
"My confidence in my own officials has been knocked."
"I have a very dented trust and confidence in my officials."
The minister said she had expressed concerns about transparency early in her tenure and had taken unusual steps to monitor the project more closely, including bringing in independent oversight and requiring additional reporting mechanisms.
MBIE Chief Executive Apologises
MBIE Chief Executive Nic Blakeley, who took over the role earlier this year, apologised publicly for the failures identified in the review.
Blakeley described the report as a difficult read and acknowledged that governance and oversight systems had fallen short.
"I've already apologised to ministers, and I would apologise to New Zealanders who expect better from MBIE than this project."
He said a wider review of governance practices across other major MBIE projects would now take place to ensure similar issues are not occurring elsewhere.
Wider Questions For The Public Service
The fallout from the failed project extends beyond immigration technology.
Stanford indicated she is not confident the problems were isolated and has requested further examination of another major immigration technology programme currently underway.
The minister also suggested broader questions now exist around project governance, accountability and ministerial oversight across the public sector.
Public Service Commissioner Sir Brian Roche has described the integrity issues raised by the review as serious and concerning, saying they go to the core of the relationship between ministers and public servants.
What Happens Next?
The independent integrity investigation is expected to examine:
- Whether officials knowingly withheld information from ministers.
- How concerns raised by staff were handled.
- Whether governance processes were deliberately circumvented.
- Whether disciplinary or employment action is warranted.
- Whether similar practices exist elsewhere within the public service.
Stanford has indicated the review will be thorough and is unlikely to produce quick answers.
For now, New Zealand taxpayers are left with a $31 million write-off, an ageing immigration technology platform that still requires maintenance, and a growing debate about accountability inside the public service.
A Test Of Trust
The failed Immigration New Zealand technology upgrade is rapidly becoming more than a story about an unsuccessful IT project.
The allegations emerging from the review strike at the heart of New Zealand's public administration system: whether ministers are receiving full and accurate information when making decisions involving millions of taxpayer dollars.
As the Public Service Commission begins its investigation, the focus is likely to move from technology failures to something potentially more significant — whether the systems designed to ensure accountability inside government departments worked as intended at all.
Sources: RNZ reporting by Craig McCulloch, Deputy Political Editor; Minister Erica Stanford media stand-up, 16 June 2026.
Source material: RNZ article and ministerial media comments.