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$6 Million Unaccounted for in Cancelled Immigration IT Project Triggers Audits and Political Outcry

7/29/2026, 5:51:51 AM

Core Event

The Ministry of Business, Innovation and Employment (MBIE) disclosed an additional $6 million spent on the Business-Customer-Uplift (BCU) immigration-technology project that had been cancelled in November 2025. The revelation came after MBIE chief executive Nic Blakeley told Immigration Minister Erica Stanford that staffing costs for the 2025-26 financial year were essentially nil—only $236 on contractors—when a further review uncovered the hidden expenditure. The ministry has therefore commissioned an independent financial audit and referred the matter to the Michael Heron inquiry and the Public Service Commissioner.

Official Statements & Responses

Erica Stanford said the new information indicated concerning conduct and raised concerns that officials may have misled Parliament. Economic Growth Minister Nicola Willis described the development as “very concerning” given the project’s extensive failures. The Public Service Commission confirmed its investigation will cover the uncovered costs without expanding its scope.

Data & Statistics

  • Project launch: 2018
  • Cancellation: November 2025 (continued negotiations into 2026)
  • Reported staffing cost for 2025-26: $0; contractor spend: $236
  • Newly identified unaccounted spend: $6 million

Verbatim Quotes

  • “MBIE officials did not deliberately attempt to mislead the select committee,” — Nic Blakeley, MBIE chief executive.