Summarised by Centrist
The known cost of Immigration New Zealand’s failed Biometric Capability Upgrade has risen from about $33 million to at least $39 million, and MBIE cannot say whether that is the final figure.
The seven-year project was intended to modernise Immigration NZ’s identity-management systems. It was stopped in December 2025 without delivering measurable benefits.
Immigration Minister Erica Stanford said her office found the discrepancy while reviewing MBIE’s answers to Parliament’s Education and Workforce Committee.
MBIE chief executive Nic Blakeley then advised that another $6 million in associated costs had been identified.
“[Blakeley] informed my office today that he cannot be confident this further $6 million represents the full extent of expenditure on the BCU,” Stanford said.
An independent financial audit has now been ordered.
An earlier review found MBIE gave ministers misleading advice, bypassed governance processes and ignored warnings the project would not deliver. It also raised questions about “creative accounting” keeping the project below the $35 million threshold that would have triggered Cabinet scrutiny.
“As soon as we pull one thread, more and more unravels,” Stanford said.
She said her trust in MBIE’s information had been “severely damaged” and her office should not have been responsible for finding the incorrect figures.
“My staff and me should not be the final line of defence,” she said.
The additional costs have been referred to the Michael Heron inquiry and the Public Service Commissioner.
