MBIE to also probe employment matters relating to the failed biometric system modernisation project
The Public Service Commission (PSC) will be carrying out an investigation into "integrity concerns" after an independent report revealed that a $33-million project at Immigration New Zealand (INZ) failed to deliver any benefits.
Public Service Commissioner Brian Roche announced this week the investigation related to the failure of INZ's Biometric Capability Update (BCU) project.
"The integrity matters highlighted by the report are serious and concerning," Roche said.
"They go to the core of the behaviours and ethics required of public servants, and the ability of Ministers to have confidence in the advice they receive from officials."
Multi-million dollar failure
INZ's BCU Project, which ran from November 2018 to November 2025, was intended to replace and modernise the agency's biometric systems, which support identity checks and help manage immigration risk.
But an independent report released this week by consultant Greg James found that the project did not deliver any results despite running for years amid leadership lapses and other challenges.
"Despite escalating issues, the project continued for several years before ultimately being stopped, having delivered no measurable benefits while incurring significant cost overruns," James said in the report.
Among the issues identified in the project included encountered delays, missed milestones, and evidence that the system provider, NEC, could not meet INZ's requirements.
"The relationship between INZ and NEC was strained throughout, marked by formal breach notices, poor transparency, and persistent disagreements over requirements," James said.
"High staff turnover across both organisations compounded delivery challenges. Over time, project activities, including requirements definition, development, and testing, were forced to occur in parallel, further degrading quality and governance oversight."
Governance processes on the project were also slow to establish and often bypassed, while interventions on major risks were described as "limited and largely ineffective."
The report also pointed out that the project's true status was misrepresented to ministers.
"Ministerial reporting has been inconsistent, at times overly optimistic, and occasionally misrepresenting the true status of the project," it said.
It noted, however, that there seems to be no deliberate attempt to mislead government officials.
"But as noted earlier it has been difficult to follow the budget change and the project reporting to the Minister has not been consistent in portraying the real state of the project."
Impact of BCU review
The findings in the report have negatively impacted the trust of Immigration Minister Erica Stanford towards her officials.
"It's really sad that we are back to a point now where I have a very dented trust and confidence in my officials," she said as quoted by 1News.
Nic Blakeley, chief executive of the Ministry of Business, Innovation, and Employment, said the failure of the BCU project was unacceptable.
"We have fallen short of the Government and public's expectations," Blakeley said. "It is integral that the public can have confidence in MBIE and our ability to deliver significant projects like BCU. I am committed to addressing the findings of the review to strengthen MBIE's ability to deliver in future."
The MBIE also welcomed the investigation by the PSC, and said it will investigate any employment matters related to the BCU project after the probe.
It added that it is already taking actions, including a stocktake of all major technology projects, strengthening MBIE's technology project systems and processes, and seeking independent assurance that they are appropriate and best practice.
Our Future Services review
Meanwhile, the PSC announced it will also look into INZ's multi-year Our Future Services programme as requested by Stanford, who wanted assurance on the advice that she received about the project.
The programme, which will be delivered in more than seven years, seeks to deliver a more cost-effective immigration system for New Zealand.
Blakeley said they also welcome the review on the initiative.
"The Our Future Services programme has already successfully delivered the highest volume visa products onto our enhanced Immigration Online technology platform and is delivering a better service for our customers and staff, but in light of the review it is prudent that we have the assurance that our processes are sound," he stated.
