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John MacDonald: Why $33M down the drain doesn't surprise me

Author
John MacDonald,
Publish Date
Wed, 17 Jun 2026, 12:52pm
Minister Erica Stanford. Photo / Hagen Hopkins
Minister Erica Stanford. Photo / Hagen Hopkins

If the device that tells you how many steps you’ve taken could also measure your faith in government departments, what would it be showing after this $33 million debacle at Immigration NZ?

Despite the amount of money involved and the number of years it’s taken to come to light, I’m not in the least bit surprised by this.

But Immigration Minister Erica Standford is “furious”. Not only that, she’s also saying that she’s lost confidence in the public servants responsible for this failed technology upgrade.

A technology upgrade that took seven years and chewed through the cash with nothing to show for it.

What’s more, Erica Standford says Immigration NZ used creative accounting practises to hide crucial information from this government and the last government.

She says these “creative accounting practises” meant that the project's costs appeared to be below the budget agreed to by Cabinet.

One report I’ve seen describes that part of the whole thing as “jaw-dropping”. But I’m not in the least bit surprised.
Because I’ve had experience with government departments and I know how these kinds of things get a life of their own.

I also know how antse people working in these departments are of the government minister they report to.
You put those two things together and what do you get? You get $33 million of taxpayer money going down the gurgler.

You get people doing what they can to avoid brassing-off their minister. And it would seem, in this case anyway, hiding information to avoid brassing off their minister.

And you get people being sucked into these special projects and some of them pretty much see it as a job for life.
I know, because I’ve sat in on meetings and workshops and briefings and wondered whether anyone involved in these projects actually remembers why the government department they work for exists.

That’s why I’m not in the least bit surprised by this.

And that’s why public service boss Sir Brian Roche - if he is serious about this investigation he’s launching - then he needs to be looking way beyond Immigration NZ.

Because who knows where else this is happening?

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