MBIE immigration IT project failure

4 stories · since July 2026 Quiet since 23 Sep

Photo: NZ Herald (opens in new tab) · MBIE confirms $50.7 million wasted on abandoned biometric project

The story so far

The Immigration Biometric Upgrade project ran for seven years before it was scrapped after failing user testing.29 Jul Immigration Minister Erica Stanford said it cost $6 million more than the initial $33 million estimate, and an independent audit was ordered to determine the total spend.29 Jul Parliament's Privileges Committee ruled that MBIE officials committed contempt by deliberately misleading MPs about the project, finding their incomplete answers created a false impression.26 Aug The committee did not recommend further sanctions for the leadership involved.26 Aug Labour said MBIE chief executive Nic Blakeley's position was untenable, and he reportedly offered to resign but the offer was refused.1 Sep

Latest

Blakeley told a select committee the abandoned project has cost taxpayers $50.7 million.23 Sep He could not guarantee the costs would not rise further while the ministry reviews its financial controls.23 Sep

Key moments

  1. Minister reveals project cost $6 million over its $33 million estimate; audit ordered.
  2. Privileges Committee finds MBIE officials deliberately misled MPs, committing contempt.
  3. Labour says chief executive's position is untenable; his resignation offer reportedly refused.
  4. MBIE confirms the abandoned project has cost $50.7 million, with possible further rises.

Written from the stories below; each sentence links to its sources.

Key people and organisations

All stories

September 2026

August 2026

July 2026

Coverage

  • NZ HeraldNZ Herald4
  • 1News1News3
  • StuffStuff3
  • The PressThe Press1
  • Otago Daily TimesOtago Daily Times1
  • The PostThe Post1