Commissioner refuses MBIE boss’ resignation after deliberately misleading MPs

Public Service Commissioner Sir Brian Roche says he doesn’t believe it would be “fair or proportionate” to sack Nic Blakeley after the MBIE chief executive offered his resignation upon being found to have deliberately misled a Parliament select committee.

It’s the latest development in an ongoing scandal engulfing Blakeley’s Ministry of Business, Innovation and Employment after it was revealed a failed immigration IT project wasted at least $40 million, officials misled MPs and ministers, while using creative accounting to avoid Cabinet scrutiny.

Parliament’s Privileges Committee, which held hearings into MBIE officials discussing the Biometric Capability Upgrade project in a select committee in March, today found those officials, which included Blakeley, had deliberately misled MPs by omitting the project had been scrapped months earlier when asked about its progress.

Blakeley and former Immigration NZ head Alison McDonald apologised to the Privileges Committee in their hearing but argued they hadn’t deliberately misled MPs in March.

“The evidence received by this committee shows that the ministry knew that the information it provided to the Education and Workforce Committee was incomplete, and that the limited manner in which the ministry answered questions about the BCU project was intentional,” the committee’s report said.

“The ministry would have been aware that in choosing to answer as it did it was certain that the committee would have been misled as to the status of the BCU project.

“On this basis, we find that the ministry deliberately misled the Education and Workforce Committee and, in doing so, committed a contempt.”

The committee, made up of cross-party MPs, did not recommend further sanction; its report saying apologies already offered were sufficient.

Public Service Commissioner Sir Brian Roche did not accept Blakeley's resignation. Photo / Mark Mitchell

In a statement, Roche said the findings were “extremely serious” and “completely unacceptable”, a point he had since made clear to all public service chief executives.

However, he had ultimately decided to refuse Blakeley’s resignation offer as he didn’t believe it would be “fair or proportionate”, also noting the committee didn’t call for further sanction.

“Mr Blakeley was only six weeks into the chief executive role when this occurred. That does not excuse what happened, but they are factors I considered in reaching my decision about his position.”

Several reviews are underway on the BCU project and other IT projects within MBIE. Blakeley and Roche have also committed to strengthening training and guidance for select committee appearances.

“Mr Blakeley is responsible for ensuring the failures identified by the Committee are addressed. I will hold him accountable for delivering that work - there is no misunderstanding on that point,” Roche said.

In a statement, Blakeley said he accepted the findings and acknowledged he took responsibility.

“Accountability rests with me. Parliament, Ministers and the public are entitled to expect better from MBIE.

“My focus now is making sure a failure of this nature does not happen again.”

His statement omitted the fact he had offered his resignation. MBIE has not yet responded to the Herald as to why it was not included in its statement.

 
Immigration Minister Erica Stanford revealed the project's failings earlier this year. Photo / Mark Mitchell

Prime Minister Christopher Luxon said deliberately misleading MPs was unacceptable but believed the outcome was “fair”.

“He’d been in the role six [weeks] and he’d [not been] advised correctly by his officials so I think they’ve got to a good outcome.

The scandal concerning the BCU project was revealed by Immigration Minister Erica Stanford earlier this year in a report detailing how, in her view, officials had misled her and deliberately altered the project to ensure it didn’t go before Cabinet and risk its years of delays being uncovered.

Following the Public Service Commission launching its review, Stanford has refrained from expressing confidence in Blakeley, saying she would wait until the review concluded.

However, she today changed her tune while acknowledging the review was ongoing.

“As it stands, I have confidence in Nick Blakeley.

“I’m not downplaying the report, it was very, very serious, but at this stage, I have confidence in him to turn this around to make sure it never happens again.”

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.