Failed NZ$33M border biometrics project sparks integrity investigation

New Zealand’s Immigration Minister Erica Stanford has rebuked a ministry over a failed biometrics project that wasted tens of millions in public funds.

The Biometric Capability Upgrade project was designed to modernize identity management systems for border security. The initiative was led by the Ministry of Business, Innovation and Employment (MBIE) and cost around NZ$33 million (US$19 million).

The project lasted seven years, delivered nothing usable, and was cancelled in November 2025. Stanford has now said MBIE officials “deliberately withheld” information from her and the previous Labour government and used “creative accounting” to dodge closer examination, reports RNZ.

Stanford appeared at a Select Committee sitting beside MBIE chief executive Nic Blakeley who apologized to MPs and said that he is “committed to learning from this and implementing change.”

Public Service Commissioner Brian Roche has been called in to conduct an investigation into integrity issues following the publication of the independent review, which was released by Immigration New Zealand (INZ). “The integrity matters highlighted by the report are serious and concerning,” Roche said.

“They go to the core of the behaviors and ethics required of public servants, and the ability of Ministers to have confidence in the advice they receive from officials.”

During the committee hearing, Stanford said ministers had not been given full information, had been “misled,” and that people were removed from the project “when they asked questions about its viability.”

The independent review found MBIE was overly optimistic about delivery, failed to follow appropriate governance processes, and ignored repeated warnings from assurance reviews and staff who questioned the project’s viability. It highlighted how the project launched in 2018 without getting sign-off from ministers before it turned to an “off-shelf model” in 2020 absent due diligence.

Stanford revealed the government budget for 2026 includes a NZ$31.2 million write-off for the project. “After seven years, MBIE somehow spent tens of millions of dollars,” she said. “Not only do we have nothing to show for it, but we are now in a position of having to maintain the existing aging infrastructure while a new solution is sought.”

Blakeley said he supported the Public Service Commission’s (PSC) decision to investigate issues relating to integrity of advice and financial management. The MBIE executive said the findings of the review were unacceptable as it made clear that MBIE’s decisions, oversight and governance failures contributed directly to the project’s collapse and caused significant financial impact.

“We have fallen short of the Government and public’s expectations,” he said.

MBIE will consider employment matters once the PSC investigation is complete. The ministry has already begun a stocktake of all major technology projects and is strengthening its systems and processes, according to a statement. It is also seeking independent assurance that its practices meet best‑practice standards.

Blakeley said he also welcomed a PSC assurance review of MBIE’s multi‑year Our Future Services programme. He said the programme had already delivered visa products onto the Immigration Online platform, but that additional assurance was “prudent” in light of the review’s findings.

Meanwhile, New Zealand’s Digital Kiwi Access Card, with biometrics provided by NEC, will be available within months. It will bring a new option for biometric age assurance to citizens and international visitors over 18. However, the exact launch date has not yet been determined, as Hospitality New Zealand works out the final details.

Article Topics

biometrics  |  border security  |  government purchasing  |  immigration  |  New Zealand