Fresh audit ordered into failed New Zealand border biometrics project

The New Zealand government says it will conduct a further inquiry to determine the exact total cost of the Biometric Capability Upgrade (BCU) project that was terminated late last year.

This latest independent audit call seeks to ensure that all expenditure related to the BCU project is scrutinized and fully accounted for, Immigration Minister Erica Stanford said in a news release on July 29.

The BCU is a seven-year technology initiative that was designed to modernize border security biometrics as part of Immigration New Zealand’s border management upgrade within the framework of the country’s broader digital transformation push. However, the project was halted at the end of last year without delivering any functional systems or palpable impact.

Stanford said the need for further inquiry had become inevitable after a review by her office found that some financial details provided as part of answers by the Ministry of Business, Innovation and Employment (MBIE) to the Education and Workforce Committee “could not be correct.”

The review uncovered evidence that a further NZ$6 million (US$3.5 million) may be tied to the project. If confirmed, the total write-off would exceed the roughly NZ$33 million previously disclosed by MBIE and cross the threshold requiring Cabinet oversight.

“In close consultation with Economic Growth Minister Nicola Willis, we have referred this matter to both the Michael Heron inquiry into the BCU project and the Public Service Commissioner, as we consider it raises significant questions regarding MBIE’s financial controls more generally,” the Immigration minister stated.

She added that her office had also asked the “Public Service Commissioner to consider whether the scope of the Heron Inquiry needs to be amended to ensure that all matters in relation to the Biometric Capability project are included.”

The new twist to the matter suggests parliament may have been misled when it conducted an audit into the BCU expenditure. In fact, MBIE chief executive Nic Blakeley came under heat from lawmakers this week following his remarks that some of the evidence was too commercially sensitive to be divulged to MPs.

Speaking in front of Parliament’s Privileges Committee, Blakeley admitted nonetheless that his ministry faulted on the project, and that they would have taken a different approach if they had a second chance, Newswire writes.

The outlet quoted Blakeley as conceding: “I agree. We got it wrong. I accept that and we should have said differently.” The Committee, meanwhile, is expected to report back to the house for possible next steps.

Last month, Stanford spoke about the need for clarity on whether the MBIE had misled government ministers or bypassed laid down procedures regarding the project.

Article Topics

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