Top ministry officials have been found in contempt of Parliament, with the Privileges Committee ruling they deliberately misled MPs about a bungled multi-million dollar IT project.
By Craig McCulloch of RNZ
The committee delivered its verdict on the extraordinary saga on Wednesday, but stopped short of recommending any further sanction for MBIE boss Nic Blakeley or former-Immigration NZ head Alison McDonald.
RNZ has approached the Ministry of Business, Innovation and Employment (MBIE) for comment.
During a select committee appearance in March, both Blakely and McDonald were asked about the progress of a biometric upgrade programme, but they failed to disclose that that project had already been cancelled.
In its findings - published on Wednesday - the Privileges Committee said the officials would have known their incomplete answers would leave MPs with a false impression.
Inquiry to look at the integrity of MBIE's conduct, including whether officials may have misled ministers. (Source: 1News)
"The limited manner in which the ministry answered questions... was intentional," it said.
"We find that the ministry deliberately misled the Education and Workforce Committee and, in doing so, committed a contempt."
The report said it was "alarming" that neither of the senior public servants were aware they could have requested to provide evidence in private or secret.
'An insult to the entire public service'
"We wish to be very clear: officials appearing before select committees have an absolute obligation to tell the truth. Being truthful, responsible, and acting in good faith is the very essence of public service.
"To fail to meet these obligations is an insult to the entire public service."
Sir Brian Roche faces questioning over claims ministers were misled in briefings about the scheme. (Source: 1News)
MBIE chief executive Nic Blakeley, and the now retired head of INZ Alison McDonald, at select committee in March 2026.
The committee did not recommend any further punishment given the officials had already publicly apologised: "We intend that our findings will be of sufficient consequence on their own."
When giving evidence in July, Blakeley admitted the ministry got it wrong, but denied a deliberate attempt to mislead.
He said officials believed they could not reveal the project's cancellation because MBIE was still negotiating a final payment with Japanese technology company NEC.
Immigration Minister Erica Stanford says a report into a failed immigration technology project was “extraordinary” and “not great for the public service”. (Source: 1News)
"We felt that we'd [addressed] the questions as best we could, given the limitations we were under," Blakeley told MPs.
Blakeley refused to answer questions from reporters after the hearing, saying he would wait for the committee's findings.
MBIE's conduct surrounding the failed project is also being investigated by former Solicitor-General Michael Heron KC at the behest of the Public Service Commission.
That investigation is looking into whether MBIE was fully upfront with ministers about the project over its full seven year timeline and whether or not they engaged in "creative accounting".
Seven-year technology project was discontinued in November last year, having delivered no measurable benefits. (Source: 1News)
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