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Immigration scandal: Winston Peters accuses MBIE officials of ‘constructive theft’ from public over failed tech project

NZ First leader Winston Peters claims Immigration NZ officials who allegedly misled ministers over a failed tech upgrade should be sacked and jailed. Photo / Anna Heath
NZ First leader Winston Peters claims Immigration NZ officials who allegedly misled ministers over a failed tech upgrade should be sacked and jailed. Photo / Anna Heath
Listen to this article — Immigration scandal: Winston Peters accuses MBIE officials of 'constructive theft' from public over failed tech project

NZ First leader Winston Peters says Immigration NZ officials who spent $33m on a doomed tech upgrade should be imprisoned for “theft” of taxpayers’ money.

An independent review of the Ministry of Business, Innovation and Employment’s (MBIE) eight-year biometric capability upgrade found officials ploughed ahead with the project despite significant problems from the beginning and numerous red flags raised by staff.

Immigration Minister Erica Stanford has accused those involved of misleading her over the project and practising “creative accounting” by attempting to avoid Cabinet scrutiny of funding requests for the upgrade - telling the Herald she no longer trusted advice from officials.

Peters yesterday called for those responsible to be sacked and jailed, saying their actions were “a conspiracy against the people”.

He told Newstalk ZB’s Mike Hosking Breakfast this morning they appeared to be guilty of “constructive theft” rather than incompetence.

“They knew full well that the information for the ministers was so bad they disguised it and kept it from those ministers.”

Asked if misleading and lying to people was a crime, Peters said no, but “stealing their money is - and the taxpayer’s been robbed”.

Challenged on his definition of stealing, Peters said officials “spent money on a hopeless cause without the intent to fulfil it” and he genuinely believed they had committed “constructive theft” - but that was up to a court to decide.

The independent review concluded officials’ reporting to ministers was “inconsistent and, at times, overly optimistic or misleading”, but stopped short of saying officials lied.

A fresh investigation by Sir Brian Roche of the Public Service Commission will consider whether deliberate deception was involved.

Peters also pointed to wider issues with MBIE, the mega-ministry that incorporates Immigration NZ.

MBIE, which was created by National minister Steven Joyce in 2012, was a mistake and was far too big, with a “long history of incompetence”, Peters said.

“It’s covering too many areas and it’s not doing the job competently.”

MBIE’s new chief executive Nic Blakeley has acknowledged the ministry’s governance was ultimately responsible for the project’s failure.

He told Ryan Bridge TODAY the “overwhelming” value of the public service was of integrity, but he wanted to strengthen checks and balances at MBIE and set a culture where staff could speak up about their concerns.