A formal investigation has been opened into a failed government technology project that cost $33 million and delivered nothing over seven years. The Public Service Commissioner is investigating allegations that officials deliberately hid information from ministers about the project's problems.

The project was supposed to update Immigration New Zealand's systems for processing visas and managing identity checks at the border. It failed completely. Immigration Minister Erica Stanford said in mid-June 2026 that more than $30 million was wasted and that ministers in two different governments were not told the truth about what was happening.

This is serious because officials have a basic duty to give ministers honest, straight advice. If officials deliberately hid information instead of warning ministers that the project was failing, that breaks a fundamental rule of how government is supposed to work.

What happened with the project

Stuff and The Post reported in mid-June that the project ran for about seven years before being scrapped without producing anything usable. MBIE, the ministry that runs Immigration New Zealand, said it supports the investigation. An earlier independent review had been critical of the project, and that review prompted the Public Service Commissioner to open a formal investigation.

This type of investigation is different from a normal project review. A standard review looks at what went wrong with the work itself. An integrity investigation looks at whether officials broke the rules — whether they were honest, fair, and loyal to how the system is supposed to function.

Why this matters

The Public Service Commission sets standards for all public servants across all government agencies. An investigation by the Commissioner carries weight beyond what a single ministry could do.

What stands out is that the allegation covers two different governments. If the hiding of information happened across more than one election cycle, it spans both the previous Labour governments and the current National-led government. This suggests the problem is not with any single government's choices, but with how that part of the ministry operates.

No timeline has been announced for the investigation, and it is still ongoing. Further findings are expected.