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  "description": "Immigration NZ’s $33m IT project delivers nothing.",
  "path": "/33m-it-project-successfully-converts-money-into-nothing/",
  "publishedAt": "2026-06-18T00:30:03.000Z",
  "site": "https://goodoil.news",
  "tags": [
    "Nigel",
    "Seven years, $33m, no results: failed government IT project “misled” minister",
    "Response to the independent review",
    "Independent review of the biometric projects",
    "Pavlova Post"
  ],
  "textContent": "Nigel\n_Nigel is the founder, editor-in-chief, and lead writer at Pavlova Post, a New Zealand satire publication covering national news, local chaos, weather drama, politics, transport mishaps, and everyday Kiwi life – usually with a generous layer of exaggeration._\n\nImmigration New Zealand has completed one of the public sector’s most ambitious digital transformations: spending seven years and approximately $33 million transforming a technology project into absolutely nothing.\n\nThe Biometric Capability Update project began in November 2018 with the modest goal of modernising Immigration New Zealand’s identity-management system.\n\nBy November 2025, it had achieved something much rarer.\n\nIt had been discontinued without delivering any measurable benefits.\n\nThat is not easy.\n\nMost failed workplace projects accidentally produce a spreadsheet, a half-working login screen or at least a branded reusable drink bottle.\n\nThis one reportedly cycled through at least 12 project managers, three programme or project directors and six project sponsors while maintaining an impressively consistent commitment to not arriving anywhere.\n\n## The handover process appears to have worked beautifully\n\nTwelve project managers across seven years means the project received a fresh pair of hands roughly every seven months.\n\nThe system may not have been capable of reliably managing biometric identities, but it became highly experienced at identifying the next person expected to explain it.\n\nA typical handover may have gone something like this:\n\n“So, where are we at?”\n\n“We are currently reviewing the revised requirements arising from the previous review of the earlier revised requirements.”\n\n“And when does it go live?”\n\n“That depends.”\n\n“On what?”\n\n“Whether you are still working here by then.”\n\nThe review found the project also experienced widespread staff turnover across most professional disciplines, alongside significant turnover at governance level.\n\nIn other words, the most successfully automated feature was apparently the revolving door.\n\n## More than 170 changes added to project that still produced no change\n\nThe project reportedly accumulated more than 170 operational-level change requests.\n\nThat is a spectacular amount of changing for something that ultimately changed nothing.\n\nFor ordinary New Zealanders, a change request might involve asking the builder to shift a power point or telling a café they forgot the trim milk.\n\nIn a major government technology project, it can mean altering the scope, budget, timeline, requirements, solution, delivery plan and emotional definition of the word “soon”.\n\nThe project began as an upgrade before expanding into a full replacement of the existing system.\n\nThe review found that major shift occurred without adequate analysis, detailed business requirements or proper testing of whether the proposed product could actually do what Immigration New Zealand needed.\n\nThis is broadly similar to buying a caravan before deciding how many people must sleep in it, then spending seven years modifying it into a ferry terminal.\n\n## Red flags remained visible but were treated as decorative bunting\n\nDelivery problems emerged early.\n\nDeadlines slipped. Requirements remained unclear. The proposed solution needed extensive customisation. Testing never properly stabilised. Fixes reportedly introduced fresh defects, allowing the project to generate problems with the renewable enthusiasm of a hydrangea.\n\nIndependent reviews repeatedly raised significant concerns.\n\nOne review in 2023 reportedly rated the project as unlikely to succeed and questioned whether it should continue.\n\nOfficials later provided the immigration minister with advice claiming the project approach was sound and robust, the build was achievable and risk management was effective.\n\nThe independent review found that advice was incorrect and misleading.\n\nIt found no evidence of a deliberate intention to mislead, suggesting the information simply completed the normal government journey from ‘deeply concerning’ to ‘tracking well’ while moving between documents.\n\nImmigration Minister Erica Stanford said her trust and confidence in officials had been dented after discovering that the cheerful briefing did not resemble the underlying quality-assurance material.\n\nThis has created a serious administrative challenge because ministers traditionally rely on briefings to discover what officials would like ministers to believe is happening.\n\n## Even the price appears to require its own investigation\n\nMBIE has publicly described the failed project as costing $33 million.\n\nHowever, the independent review said establishing an accurate total had proved difficult. It referred to estimates of approximately $35 million for the Biometric Capability Update and another $8.5 million for the related In-Person Enrolment project, while earlier records suggested the main project may once have approached $40 million.\n\nSome staff reportedly described elements of the financial management as ‘creative accounting’, including efforts to remain below a $35 million threshold that would have triggered greater cabinet scrutiny.\n\nThere is something almost artistic about a project whose cost is no more settled than its requirements.\n\nThe final amount may depend on whether the government counts the related work, transferred funding, unfinished components, consultants, reviews, apologies and industrial quantity of meeting-room coffee required to keep saying ‘delivery remains feasible’.\n\n## The project has now entered its most productive stage: investigations\n\nThe Public Service Commission will investigate integrity concerns involving the quality of official advice and financial management.\n\nMBIE is also conducting a stocktake of its other major technology projects, presumably beginning with the important question:\n\n‘Are any of these also quietly spending millions of dollars while producing a series of colour-coded updates?’\n\nThe ministry says Immigration New Zealand’s existing identity-management system continues to operate normally and New Zealand’s border remains safe.\n\nThat is reassuring.\n\nThe old system is still working, the failed replacement has been stopped, and taxpayers have received the traditional public-sector technology package:\n\n  * no new functioning system\n  * several investigations\n  * an apology\n  * strengthened governance promised for next time\n  * and a report confirming many people noticed the disaster while it was occurring\n\n\n\nFor $33 million, New Zealand may not have received an upgraded biometric system.\n\nBut it has received a valuable lesson.\n\nUnfortunately, the lesson appears to be the same one purchased during the previous government IT project.\n\n## Grown-Up Links\n\n  * 1News – Seven years, $33m, no results: failed government IT project “misled” minister\n  * MBIE – Response to the independent review\n  * MBIE – Independent review of the biometric projects\n\n\n\nThis article was originally published by Pavlova Post.",
  "title": "$33M IT Project Successfully Converts Money Into Nothing",
  "updatedAt": "2026-06-18T00:30:03.381Z"
}