MBIE welcomes Public Service Commission investigation after critical independent review
Published: 16 June 2026
The Ministry of Business, Innovation and Employment (MBIE) welcomes an investigation by the Public Service Commission (PSC) into integrity issues uncovered in an independent review into a failed technology project.
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MBIE’s Chief Executive, Nic Blakeley, says it is unacceptable that the $33 million Biometric Capability Update (BCU) project failed to deliver anything since it began in November 2018. The project was ultimately discontinued in November last year.
Mr Blakeley says the review makes it clear that MBIE’s decisions, oversight and governance failings led to the project’s overall failure and have had a significant financial impact.
“We have fallen short of the Government and public’s expectations,” Mr Blakeley says.
“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 project was designed to modernise and future-proof Immigration New Zealand’s identity management capability. However, the project encountered significant challenges and it was no longer viable to continue.
The independent review has strongly criticised MBIE for being overly optimistic about delivery, the lack of appropriate governance processes and ignoring advice from quality assurance reviews and staff that questioned the viability of the project.
“I am fully supportive of the Public Service Commission looking further into the very concerning issues raised in the report, especially those related to integrity of advice and financial management,” Mr Blakeley says.
Following the Public Service Commission’s investigation, MBIE will investigate any employment matters relating to the BCU Project.
In addition, MBIE is already undertaking a number of 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.
Mr Blakeley also welcomes a PSC assurance review of the multi-year Our Future Services programme to provide assurance that MBIE advice is accurate and can be relied upon by Ministers.
“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.
“I also want to reassure the public that our identity management system continues to operate as normal and New Zealand’s border remains safe,” Mr Blakeley says.
A copy of the independent review is attached to this media release. There are minor redactions to protect the privacy of natural persons and commercial information/negotiations.
MBIE media contact
Email: media@mbie.govt.nz
https://www.mbie.govt.nz/about/news/mbie-welcomes-public-service-commission-investigation-after-critical-independent-review
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