New Zealand probes whether officials misled ministers over failed biometrics project

New Zealand’s Immigration Minister Erica Stanford says it is now up to the Public Service Commissioner to decide whether officials misled parliament over a failed multi‑million‑dollar biometrics technology program.

Public Service Commissioner Sir Brian Roche has released the scope of an investigation into the actions of MBIE staff involved in the abandoned NZ$33 million ($US19 million) Biometric Capability Update project. Roche appointed Michael Heron KC to lead the inquiry into the Ministry of Business, Innovation and Employment.

The review will examine what information MBIE provided to ministers, what officials understood about the project’s troubles, and allegations of questionable financial reporting. Roche said the investigation is essential because ministers must be able to rely on accurate, honest advice, and public trust in the civil service depends on officials acting with integrity.

The inquiry follows Stanford’s rebuke last week, when she accused MBIE of withholding key details from both her and the previous Labour government as concerns about the project mounted.

It also comes after RNZ reported that former Immigration New Zealand (INZ) head Alison McDonald failed to reveal to a select committee that the project had already been terminated. INZ is part of MBIE and McDonald had been acting as its head before retiring.

When McDonald appeared at a select committee meeting a couple of months ago, she reportedly failed to tell the committee that the Biometric Capability Update (BCU) had already been abandoned. The project had in fact been terminated in November 2025.

An independent report on the failures of the BCU project was only weeks away from being published when McDonald appeared in front of the committee in March.

MBIE chief executive Nic Blakeley, who has apologized to MPs and accepted responsibility on behalf of the ministry, attended the committee session where the issue resurfaced. Stanford has been asked about Blakeley’s future, but she responded that he had not been involved in the biometric project, which was intended to modernize identity management systems for border security, and had been on the policy side of things and a long-term MBIE member.

“[Blakeley] is now tasked with making sure that the culture within MBIE is good and that the new leadership is strong, so that we can avoid this happening in the future,” Stanford said, as quoted in RNZ.

Michael Heron KC is a former solicitor general and a barrister. Heron has led a number of independent investigations for government agencies, according to Roche, and New Zealand’s Public Service Act means the commissioner can support the inquiry with official powers to obtain information, for example. The Inquiries Act also means the commissioner can summon former employees, anyone relevant outside the public service, and witnesses.

The investigation into MBIE, which is multi-faceted and complex, is expected to take several months.

The BCU project lasted seven years, delivered nothing usable, and was cancelled in November 2025. An 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.

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 minister 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,” Stanford said at a hearing last week. “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.”

Article Topics

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