New Audit Ordered as MBIE Biometric Project Costs Rise

The latest concerns surfaced after the Minister's office reviewed MBIE's responses to follow-up questions from the Education and Workforce Committee.

The New Zealand Government has ordered an independent financial audit into the Ministry of Business, Innovation and Employment's (MBIE) Biometric Capability Upgrade (BCU) project after fresh concerns emerged over the total amount spent and the accuracy of information previously provided to Parliament.

The project, which ran for seven years, was officially stopped in December 2025. Earlier this year, MBIE advised Ministers, the Education and Workforce Committee, and the public that around NZ$33 million in project costs would need to be written off. Fresh findings have now raised doubts over whether that figure reflects the full cost of the cancelled programme.

Additional project costs uncovered

The latest concerns surfaced after the Minister's office reviewed MBIE's responses to follow-up questions from the Education and Workforce Committee. During that review, officials found that financial information supplied to the committee could not be correct.

After being asked to re-examine the figures, MBIE Chief Executive confirmed that a further NZ$6 million in project costs had been identified. Even with that adjustment, the Chief Executive said he could not guarantee that the revised figure captured all spending connected to the project.

That uncertainty prompted the decision to commission an independent financial audit to establish the full extent of expenditure.

Financial controls under closer examination

The Government has referred the matter to both the Michael Heron Inquiry, which is already examining the Biometric Capability Upgrade project, and the Public Service Commissioner. Ministers believe the newly identified discrepancies raise wider questions about MBIE's financial management and internal controls, extending beyond the project itself. Earlier reviews had also questioned whether MBIE used accounting methods that kept the project's reported whole-of-life cost below the NZ$35 million threshold that would have required Cabinet scrutiny.

Inquiry scope could be expanded

The Government has asked the Public Service Commissioner to consider expanding the terms of the Michael Heron Inquiry so every issue connected with the Biometric Capability Upgrade is fully investigated.

The independent audit is expected to determine the project's actual cost while helping establish whether further financial reporting issues exist. The findings will also support the ongoing inquiry into the project's management and decision-making.